Gov. Greg Gianforte reminded Montana homeowners that they have until March 1 to apply for the 2026 “Homestead Reduced Rate” for property taxes on their primary home and long-term rentals.
“Recognizing the burden of rising property taxes, we worked with the Legislature to deliver permanent and meaningful property tax relief,” Gianforte said in a statement. “Thanks to our reforms, 80% of Montana homeowners saw lower property taxes last year.”
Properties that qualified for and received the 2025 property tax rebate will automatically qualify for the 2026 Homestead Reduced Rate if ownership has not changed and the property continues to be used as the primary residence.
The news release said approximately 80% of property tax revenue from residential homeowners goes directly to local jurisdictions and the remaining 20% goes to the State of Montana, which returns the amount in full to help fund K-12 public schools throughout the state.
Beginning Dec. 1, 2025, Montana homeowners became eligible to apply for the Homestead Reduced Rate for the 2026 tax year.
To qualify, applicants must attest that they will own and live in their Montana home as their principal residence for at least seven months during 2026. When applying, homeowners will need to provide the property’s physical address, geocode, and the names and Social Security numbers of the property owners.
House Bill 231, sponsored by Rep. Llew Jones, R-Conrad, established the Homestead Rate, which takes effect this year. The Homestead Rate is a new, lower property tax rate for long-term rentals and primary residences.
Additionally, the application period for the Long-Term Rental Reduced Rate is open. To qualify, properties must be rented to tenants as their residence for periods of 28 days or longer for at least seven months of the year. Applicants will need to provide the property’s physical address, geocode, owner information, and details on rental income and expenses.
In November, Gianforte announced that nearly 80% of homes will see a tax cut from the reforms, and 10% will see property taxes remain flat, the news release said. According to the Governor’s Office, the average savings for homeowners who saw a tax cut was more than $500, not including the up to $400 property tax rebate.
Senate Bill 542, sponsored by Sen. Wylie Galt, R-Martinsdale, establishes new, tiered tax rates to deliver property tax relief for Montanans for their homes, small businesses, farms, and ranches in 2025 and provided a property tax rebate for Montanans for their primary residence.
A lawsuit that alleges SB 542 is unconstitutional is pending.
Last year, more than 235,000 Montana homeowners claimed and received a property tax rebate, the news release said.
