2026 Property Tax Information for Homesteads and Long-term Rentals

This page provides a focused summary of Montana's property tax policies specifically for owner-occupied primary residences (homesteads) and long-term rentals. These types of properties receive favorable tax treatment under legislation taking effect in 2026.

What Qualifies as a Homestead or Long-term Rental?

Homestead (Primary Residence):

  • You lived in the home for at least 7 months of the year
  • The property is your principle residence

Long-term Rental:

  • The home is rented to tenants for 28+ days at a time
  • The home is rented for 7+ months of the year
  • You must apply between Dec. 1, 2025 and Mar. 1, 2026 for the 2026 rate

Eligible property types include:

  • Single-family homes, townhomes, condominiums
  • Manufactured/mobile homes (including up to 1 acre of land)
  • OBYs with living space and 1-acre homesite
  • Homes located on agricultural or forest land

Tax Rates for Homesteads and Long-term Rentals

A tiered system applies homesteads and long-term rentals:

In 2026, the Department will implement a tiered system based on the estimated statewide median home value ($378,000 for the 2025–2026 appraisal cycle):

Tax Rate Assessed Value
0.76% <$378,000 (up to median)
0.90% $378,001 to $756,000 (median to 2x median)
1.10% $756,001 to $1,511,999 (2x to 4x median)
1.90% ≥$1,512,000 (4x median or greater)
2025-2026 statewide median home value is tentatively $378,000

Tax Rates for Agricultural and Forest Land Properties

  • Land: 14.35% flat rate
  • If the parcel has a primary residence or long-term rental: home + 1-acre homesite taxed at tiered residential rate
  • If it's a second home or short-term rental: home + 1-acre homesite taxed at 1.90% flat rate

  • Automatically qualified if 160+ acres; smaller parcels require proof of agricultural use and income
  • Land: 2.05% flat rate
  • Residence rules:
    • Primary residence or long-term rental: taxed at tiered rate
    • Second home or short-term rental: taxed at 1.35% flat rate

  • Land: 0.37% flat rate
  • If a dwelling exists:
    • Primary residence or long-term rental: taxed at tiered rate
    • Second home or short-term rental: taxed at 1.90% flat rate