Montana Property Tax Cuts: Homestead, PTAP, and Veteran Relief

Montana’s biggest property tax cut for homeowners is the homestead reduced tax rate, which took effect January 1, 2026, and taxes a primary residence at 0.76% on the first $378,000 of market value instead of the 1.90% flat rate that applies to second homes and short-term rentals. Layered on top are separate programs for low-income homeowners, residents 62 and older, and disabled veterans. Each program has its own income limits, deadlines, and application, and missing a deadline generally means waiting a year.

The Homestead Reduced Tax Rate

House Bill 231 and Senate Bill 542 created a permanent tiered rate for primary residences, replacing the earlier system of after-the-fact rebate checks. Each bracket of your home’s market value is taxed at its own rate, the way income tax brackets work.¹

For tax year 2026 the homestead rates are:

First $378,000 of market value: 0.76%
$378,001 to $756,000: 0.90%
$756,001 to $1,511,999: 1.10%
$1,512,000 and above: 1.90%

A property that doesn’t qualify as a homestead, such as a second home or short-term rental, pays a flat 1.90% on its entire market value. On a $378,000 home, the homestead rate produces a taxable value of roughly $2,873 versus $7,182 at the non-homestead rate, cutting the bill by about 60%.

Who Qualifies for the Homestead Rate

You qualify if you live in the property as your principal residence for at least seven months of the year and are current on your property taxes.² Eligible property types include single-family homes, townhomes, condominiums, manufactured or mobile homes with up to one acre of land, and certain homes on agricultural or forest land.³

Property owned by a business entity generally doesn’t qualify. The exception is a home held in a grantor revocable trust, where the trustee can apply on behalf of the trust if the grantor lives there as a principal residence.⁴ Second homes, vacation properties, and short-term rentals don’t qualify regardless of how they’re titled.

How to Enroll in the Homestead Program

Enrollment isn’t automatic for everyone. If you received the 2025 property tax rebate and still own and live in the same home, you were rolled into the homestead program for 2026.⁴ Everyone else has to apply through the Department of Revenue’s portal at homestead.mt.gov or by mail.

The standard window runs December 1 through March 1. For tax year 2026 the state extended the deadline to March 20, 2026, and that window has closed.⁵ The portal reopens May 4, 2026, for the 2027 tax year.² If you missed the 2026 deadline, your property is taxed at the non-homestead 1.90% rate this year. Mark the May reopen date on a calendar so you don’t lose another year.

To apply, you need the 17-digit geocode for your parcel, which appears on your property tax bill and in the Montana Cadastral database maintained by the State Library.⁶ You’ll also provide your Social Security number and sign a declaration under penalty of perjury that the property is your principal residence.⁴

Long-Term Rentals

Landlords who lease residential property to tenants for 28 days or longer, and for at least seven months of the year, can get the same tiered rates on that property.⁷ The rental has to serve as the tenant’s residence, not a commercial or vacation use. Owners aren’t automatically enrolled, and if you own both a home and a rental, the homestead application only covered the one you live in. The rental needs its own application on the same annual schedule.²

Property Tax Assistance Program for Lower Incomes

The Property Tax Assistance Program (PTAP) is a separate, ongoing program that reduces the tax rate on your principal residence based on federal adjusted gross income. It stacks on the homestead rate, so a qualifying owner gets both the lower tiered rate and an added percentage cut.

For 2026, single filers with AGI up to $14,286 get an 80% reduction; $14,287 to $19,532 gets 50%; $19,533 to $29,037 gets 30%. For married or head-of-household filers, the brackets are $0 to $19,249 (80%), $19,250 to $29,085 (50%), and $29,086 to $38,917 (30%).⁸

Income is measured by 2024 federal AGI, excluding capital and income losses, and both spouses’ incomes count even if only one spouse owns the home. Applications are due by April 15 of the tax year in which you first claim the reduction.⁹

Elderly Homeowner and Renter Credit

Montana residents 62 or older can claim a refundable income tax credit of up to $1,150, even with no income tax liability. You need to have lived in Montana at least nine months during the tax year and have total household income below $45,000, where the credit phases out entirely.¹⁰ Renters qualify, which makes this one of the few property-tax-related relief options for older Montanans who don’t own a home.

Disabled Veteran Assistance Program

Veterans rated 100% service-connected disabled by the U.S. Department of Veterans Affairs can get a 50% to 100% cut in the tax rate on their principal residence. Unmarried surviving spouses of veterans who died on active duty, from a service-related disability, or while rated 100% disabled are also eligible.¹¹

The 2026 income ceilings are $62,598 for single filers, $72,229 for married or head of household, and $54,573 for unmarried surviving spouses. The reduction grows as income drops. A single veteran earning under $48,152 gets a full 100% cut; earnings between $57,782 and $62,598 get 50%.¹¹ Applications are due April 15, and the seven-month residency rule applies.

If Your Application Is Denied

You have 45 days from the date of a denial notice to file a written objection asking for informal review. The objection needs to explain your disagreement and include supporting documents. Submit it to DORObjections@mt.gov or PO Box 7149, Helena, MT 59604-7149.¹²

File on time even if you’re still gathering paperwork. Missing the 45-day window permanently bars the claim. A supervisor will issue a written determination within 45 days, and if you disagree with that outcome, you can escalate to the Office of Dispute Resolution and, ultimately, the Montana Tax Appeal Board, with 45 days to take each next step.¹²

1
Montana Department of Revenue. Quick Comparison of Property Tax Rates
2
Montana Department of Revenue. Tax Relief for Homesteads and Long-term Rentals
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Montana Department of Revenue. 2026 Tax Information for Montana Property Owners
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Montana Code Annotated. Montana Code 15-6-405 – Homestead Reduced Tax Rate Application Limitations
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Montana Department of Revenue. Application Deadline for Property Tax Relief Extended to March 20
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Montana Department of Revenue. Using Cadastral to Find Your Geocode
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Montana State Legislature. HB 231 and SB 542 Property Tax Changes Summary
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Montana Department of Revenue. Property Tax Assistance Program Application for Tax Year 2026
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Montana State Legislature. Montana Code 15-6-302 – Property Tax Assistance Rulemaking
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Montana Department of Revenue. Montana Elderly Homeowner/Renter Credit
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Montana Department of Revenue. Montana Disabled Veteran Assistance Program
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Montana Department of Revenue. How to Appeal a Department Tax Decision