2026 Homestead Reduced Tax Rate FAQs

The Homestead Reduced Rate lowers property taxes for homeowners who occupy their Montana home as their principal residence for at least seven months per year. This classification carries a reduced tax rate compared to standard Class 4 residential property.

For a general explanation of how these changes can affect your property tax bill, see the Property Tax Explainer.

To qualify for the Homestead Reduced Rate, all the following must be true: 

  • The property is your principal residence for at least seven months each year, 
  • You or your revocable grantor trust own the property, 
  • You are current on all property tax payments, and
  • This is the only residence you will claim a Homestead Reduced Rate for. 

Go to Homestead.mt.gov. You can: 

  • Enroll your property for the Homestead Reduced Rate, 
  • Update ownership or address information.

You do not need to enroll if you received a property tax rebate in 2025 and still own and live in the same home for at least 7 months in 2026. You don’t need to take any further action; you’re already enrolled for the reduced tax rate.

You can verify your enrollment here: Verification Page.

You must enroll if:

• You no longer use the dwelling that qualified for the 2025 rebate as your principal residence,

• You moved,

• The property was sold or transferred, or

• Ownership has changed since you received the rebate.

You will also need to enroll if you did not get a property tax rebate in 2025 or you recently bought or built a new home.

You must enroll between December 1, 2025 and March 1, 2026 to qualify for 2026.

If you recently purchased or built a home, did not receive the 2025 rebate, or no longer own or use the dwelling that qualified for the 2025 rebate, you must enroll during this period.

You may enroll online or by mail using the 2026 Montana Application for a Reduced Property Tax Rate on a Principal Residence Homestead (PDF).

The Department of Revenue’s Call Center at 406-444-6900 and local Department of Revenue offices can assist with documentation or eligibility questions.

You can find your local office here: Local County Field Office Contact Info.

The Homestead Reduced Rate only applies to the portion of your property used as your principal residence.

For properties listed under one geocode that include multiple dwellings—such as a duplex, two homes, or a home with an accessory dwelling unit (ADU)—the remaining dwellings do not automatically receive a reduced rate.

If the other dwellings qualify for the Long-term Rental Reduced Rate, you may enroll each of them between December 1, 2025, and March 1, 2026. Use our online Long-Term Rental Application or download the Long-term Rental paper application (PDF).

Only revocable grantor trusts qualify if the occupant is the grantor and uses the home as their principal residence. 

Homes owned by other entities like irrevocable trusts or LLCs do not qualify for the Homestead Reduced Rate. However, those properties may qualify for the Long-Term Rental Reduced Rate if they meet the requirements of and enroll in that program.

You will attest that your property meets Homestead Reduced Rate criteria: ownership, use, residency length, and payment of assessed Montana property taxes. False attestation can result in loss of the classification and significant legal and financial penalties. 

The property qualifies for the Homestead Reduced Rate as long as one of the owners meets the qualifications for the Homestead Reduced Rate.

You must live in the home as your principal residence for at least seven months per year. The months do not need to be consecutive. Short absences (vacations, medical stays, or military deployments) generally do not impact eligibility if the home remains your principal residence.  

No. You must be current on your property taxes to be eligible for the Homestead Reduced Rate.

“Current” means:

  • All past property taxes are paid.
  • For 2025 taxes, you must have paid in full or made the first-half payment.

Yes. If the home you purchased already has the Homestead Reduced Rate, you’ll get that rate for the rest of the year. To keep it for the following year, you must enroll as the new owner during the December 1 to March 1 enrollment period.

If the home was not enrolled for the Homestead Reduced Rate, and it is purchased before March 1, you can enroll the home for the current tax year by March 1. If you do not timely enroll or you purchase your new home after March 1, your home will be taxed at the standard Class 4 residential rate for the rest of the year, then you can enroll for the Homestead Reduced Rate during the December 1 to March 1 enrollment period for the next year.

You will need to enroll your newly-built home for the Homestead Reduced Rate through Homestead.mt.gov. 

To enroll a new home, you must submit a 2026 Montana Application for a Reduced Property Tax Rate on a Principal Residence (Homestead) by March 1, 2026 to receive the reduced rate for 2026.  If your new home is not built by March 1, 2026, you may apply for the Homestead Reduced Rate for 2027.

The Homestead Reduced Rate does not automatically transfer to your new home. However, if the home you purchased was enrolled for the Homestead Reduced Rate by its previous owner, those rates will remain effective until the end of the calendar year. You will need to enroll your new home for the Homestead Reduced Rate for the following year through Homestead.mt.gov. 

If you sell your principal residence and purchase a new principal residence and reside in each principal residence for a total of at least 7 months, the Homestead Reduced Rate may apply to your new home, but you must enroll your new principal residence with the Department.

The Homestead Reduced Rate expires at the end of the calendar year. The buyers of your home will need to enroll at the end of the year for the Homestead Reduced Rate if they will be using the home as their principal residence.

Yes, as long as you live in the home as your principal residence for at least seven months a year. For example, you will qualify for the Homestead Reduced Rate if you live in your home from April through December but rent it out from January to March.

If the cabin is not the principal residence of one of the current owners, it will not qualify for the Homestead Reduced Rate.

If you rent the cabin for periods of 28 days or more for at least 7 months of the year to tenants who occupy the cabin as a residence, it may qualify for the Long-term Rental Reduced Rate. For more information on the  Long-term Rental Reduced Rate see Homestead.MT.Gov and 2026 Long-term Rental Reduced Rate FAQs.

Generally, no. You can only have one principal residence.

A Montana homestead declaration protects home equity from creditors and is filed with your County Clerk and Recorder. A homestead declaration does not qualify you for the Homestead Reduced Rate. The Homestead Reduced Rate is a property tax classification claimed through the Montana Department of Revenue. The two are separate legal mechanisms.

No. Agricultural and forest designations are separate property use classifications with different standards and income requirements.

Questions About Long-Term Rentals?

Visit the 2026 Long-Term Rental Tax Reduction FAQs page.