2026 Long-Term Rental Tax Rate Reduction FAQs

The Long-Term Rental Reduced Rate lowers property taxes for homes and apartments rented for at least seven months of the year to a tenant who occupies the rental as a residence.

A property qualifies if:

• You are renting a dwelling,
• You rent the dwelling for periods of at least 28 days for at least seven months of the year,
• Your tenants occupy the dwelling as a residence, and
• You are current on your property taxes.

Your tenants must occupy the rental as a residence for at least seven months in a calendar year. Time spent just listing the property does not count.

“Dwelling” includes single-family homes, units of a multi-family dwelling, manufactured homes, and mobile homes, along with the property on which the dwelling is located but not including any contiguous or adjacent parcels.

You must enroll between December 1, 2025, and March 1, 2026, to qualify for the Long-Term Rental Reduced Rate in 2026. Enroll online or submit your enrollment form by mail.

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

Yes. An entity can own the property and receive the Long-Term Rental Reduced Rate if it meets all the requirements listed above.

You will attest that your rental property meets the Long-Term Rental Reduced Rate criteria: a dwelling, rental term of 28 days or more for at least seven months of the year, use by the tenant as a residence, and payment of assessed Montana property taxes.

You will also be required to submit the income and expense information for each rental property for the previous year, including the amount of rent charged each month.

False attestation can result in loss of the classification and significant legal and financial penalties.

Yes. To continue receiving the Long-Term Rental Reduced Rate in future years, you must reapply as required by the Department of Revenue. The Department will notify you of any reapplication requirements.

No. You must be current on your property taxes to qualify for the Long-Term Rental Reduced Rate.

“Current” means:

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

Yes. You may lose eligibility if you:

• Sell or transfer ownership,
• No longer rent the property to tenants as a residence,
• Convert the property to a short-term lease or otherwise change the lease terms in a manner that the property no longer qualifies,
• Are no longer current on your property tax payments, or
• Fail to submit a reapplication to the Department of Revenue when required.

You must notify the Department of Revenue within 30 days of any of these events.

The Department will reclassify the property at the standard rate at the start of the following calendar year.

The portion of your property that you live in as your principal residence for at least seven months of the year may qualify for the Homestead Reduced Rate. You can check your enrollment with the Homestead Enrollment Verification Tool using your property’s geocode.

If the additional dwelling unit(s), such as a separate home, an accessory dwelling unit (ADU), or other unit(s) of a multi-family dwelling, qualify for the Long-Term Rental Reduced Rate, you can enroll each of them for the reduced rental rate between December 1, 2025, and March 1, 2026, using the same geocode.

Yes, as long as the Long-Term Rental Reduced Rate criteria are satisfied: rental term of 28 days or more for at least seven months of the year, use by the employee as a residence, and payment of assessed Montana property taxes.

When reporting the amount of monthly rent charged on the Long-Term Rental Reduced Rate application, enter your estimate of the reasonable rental value of the housing.