Montana’s one-time property tax rebate checks are gone. House Bill 222 (covering 2022 and 2023 taxes) and the House Bill 231 rebate (covering 2024 taxes) have both closed, and unclaimed money went back to the state’s general fund.1Montana State Legislature. Montana Department of Revenue Income Tax and Property Tax Rebate Report In their place, Montana now offers a Montana property tax refund through the homestead reduced tax rate: if you own and live in your home, you pay a lower rate on your tax bill, and if you missed enrollment for 2026 you can still claim the difference back as a refund in early 2027.
Claiming a Refund if You Missed 2026 Enrollment
The 2026 enrollment window closed on March 20, 2026, and the portal is shut.2Montana Department of Revenue. Application Deadline for Property Tax Relief Extended to March 20 If your home was not enrolled, it is being taxed this year at the flat Class 4 residential rate of 1.90% rather than the lower homestead rate.
You can recover the overpayment. The Department of Revenue will accept refund claims from January 1, 2027 through May 31, 2027 for the difference between what you paid at 1.90% and what you would have paid at the homestead rate.3Montana Department of Revenue. 2026 Homestead Reduced Tax Rate FAQs Filing that claim does not sign you up for the following year. You also have to enroll separately for 2027 to receive the reduced rate going forward.
If you bought a home that the previous owner had already enrolled, the reduced rate carries through 2026 and your bill reflects it. You still need to re-enroll in your own name to keep the rate past this year.3Montana Department of Revenue. 2026 Homestead Reduced Tax Rate FAQs
Who Qualifies as a Homestead
Three conditions have to be met: you own the property, you live in it as your primary residence for at least seven months of the year, and you are current on your property taxes.4Montana Department of Revenue. Tax Relief for Homesteads and Long-term Rentals The property has to be Class 4 residential, which covers single-family homes, manufactured and mobile homes, and units in multi-family buildings.5Montana State Legislature. Montana Code 15-6-134 – Class Four Property — Description — Taxable Percentage
Ownership form matters, and this catches people. The home must be held by an individual, a couple, or a grantor revocable trust. A home titled to an LLC, partnership, corporation, or irrevocable trust does not qualify, even if the owner lives there full time.4Montana Department of Revenue. Tax Relief for Homesteads and Long-term Rentals Vacation homes and second residences also do not qualify. You can only claim one homestead.
Enrolling for 2027
Enrollment is required. Montana does not apply the reduced rate automatically just because you live in your home. The one exception: if you received a property tax rebate in 2025 and still own and live in the same home, you were enrolled automatically for 2026 with no further action needed.3Montana Department of Revenue. 2026 Homestead Reduced Tax Rate FAQs
The 2027 application portal opens May 4.4Montana Department of Revenue. Tax Relief for Homesteads and Long-term Rentals To apply, you need your property’s 17-digit geocode, which appears on your property tax notice. You can also look it up through the Department of Revenue’s cadastral mapping tool.6Montana Department of Revenue. Using Cadastral to Find Your Geocode Both online applications and mailed paper applications are accepted, with mail postmarked by the deadline. The Department of Revenue also has an online tool to check whether your property is currently enrolled.
The reduced rate is applied in tiers based on your home’s market value, with the first slice taxed lightest and higher slices taxed at progressively higher rates until the top tier matches the standard 1.90%.7Montana Department of Revenue. Quick Comparison of Property Tax Rates For most Montana homeowners the savings against the flat non-homestead rate are substantial.
The Elderly Homeowner and Renter Credit
A separate Montana refund remains available for older residents and is claimed through your state income tax return rather than through the property tax system. The Elderly Homeowner and Renter Credit is refundable, meaning you receive the balance as a payment even if you owe no income tax, up to a maximum of $1,150.8Montana State Legislature. Montana Code 15-30-2340 – Residential Property Tax Credit for Elderly — Computation of Relief
You qualify if you meet all four of these:9Montana State Legislature. Montana Code 15-30-2338 – Residential Property Tax Credit for Elderly — Eligibility
- Age 62 or older during the tax year
- Lived in Montana at least nine months of the year
- Occupied a Montana dwelling as owner or renter for at least six months
- Gross household income under $45,000 from all sources
The credit phases down as income approaches $45,000, so a household at $40,000 receives less than one at $25,000. Renters qualify too, with their benefit calculated from a portion of rent paid to reflect property taxes passed through by the landlord. You claim it on your Montana individual income tax return during the regular filing season.10Montana State Legislature. Elderly Homeowner and Renter Credit You can receive this credit and the homestead rate in the same year if you qualify for both.
The Old Rebate Programs Are Closed
If you came here looking for the rebate checks Montana sent in prior years, there is nothing left to apply for. HB 222 provided rebates of up to $675 for property taxes paid in 2022 and 2023.11Montana Department of Revenue. Montana Individual Income Tax Rebate and Property Tax Rebate – Tax News You Can Use HB 231 later provided a one-time rebate of up to $400 for property taxes paid in 2024, with claims accepted between August 15 and October 1, 2025. Both programs have terminated, and unclaimed funds reverted to the general fund.1Montana State Legislature. Montana Department of Revenue Income Tax and Property Tax Rebate Report The homestead reduced tax rate replaces them.
Federal Tax Treatment
Because the homestead rate just lowers your property tax bill, there is no separate payment to report on your federal return. You deduct your property taxes as you normally would; the number is simply smaller.
The older rebate checks were different. Whether a prior-year rebate affects your federal return depends on whether you itemized and claimed a state and local tax deduction in the year the rebated taxes were paid. If you took the standard deduction, the rebate generally was not taxable. If you itemized and deducted those property taxes, you may have needed to report the rebate as income to the extent it provided a tax benefit. If you received a rebate and are not sure how it was handled, review the federal return for the year in question.