2026 Property Tax Changes

2026 Tax Information for Montana Property Owners

2026 Tax Information for Montana Property Owners In 2026, Montana will implement a new property tax structure that continues to promote long-term housing while distinguishing primary residences and rentals from second homes and short-term vacation properties. This page outlines the key tax rate changes for different property types and classifications. Reduced Tax Rates for Primary Residences and Long-term Rentals The Montana Department of Revenue will implement a new tax rate structure in 2026 that reduces tax rates for primary residences and long-term rentals. If you received the 2025 property tax rebate and still own and live in the home for 7+ months of 2026, you automatically qualify. Long-term rentals (rented for 28+ days for at least 7 months/year) also qualify. Application window: Dec. 1, 2025 – Mar. 1, 2026 Eligible property types: Single-family homes, townhomes, condominiums Single-family homes on non-qualified or qualified agricultural land or forest land Manufactured/mobile homes (including up to 1 acre of land) OBYs with living space and a 1-acre homesite Tax Rates The reduced tax rate follows a tiered (incremental) structure. Each portion of your property’s market value is taxed at the rate listed for that bracket — not the total value. For Tax Year 2026: 0.76% on the first $378,000 of market value 0.90% on the portion between $378,001 and $756,000 1.10% on the portion between $756,001 and $1,511,999 1.90% on any portion over $1,512,000 or greater Other Residential Property Types Tax Rate for Non Primary Residences and Non Long-term Rentals The flat 1.90% tax rate applies to: Second homes Short-term rentals (e.g., VRBOs, Airbnbs, cabins) Vacant residential lots Multifamily Dwellings Multifamily dwellings used as long-term rentals: Flat tax rate: 1.10% Manufactured Homes as Personal Property Manufactured/mobile homes used as a primary residence or long-term rental qualify for the tiered tax rate If the land and home are under the same ownership, up to 1 acre of land qualifies as well Tax Rates for Non-Residential and Agricultural Properties Commercial and Industrial Property (Vacant and Improved) The Department will calculate tax using a two-tiered structure based on an estimated statewide median value of $379,000: 2026 Tax Rates for Commercial & Industrial Property Tax Rate Assessed Value 1.50% <$2,274,000 (under 6x median) 1.90% ≥$2,274,000 (6x median or greater) Non-qualified Agricultural Land Parcels 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 Qualified Agricultural Land Parcels 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 Forest Land Parcels 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