Montana Income Tax & Property Tax Rebates – What Individuals Need to Know

U.S. dollars some in black opened envelope, rest on table underneath it

Hot off the Montana press – you could get some money back!

On March 13, 2023, Montana Governor Greg Gianforte signed into law two new legislative bills that will provide rebates to eligible Montana taxpayers for recent income taxes and property taxes paid.

House Bill 192
House Bill 192, also known as the Individual Income Tax Rebate bill, is a tax rebate for an eligible individual’s 2021 income taxes.

You can qualify for this tax rebate if all of these are true:

  • You were a Montana resident for the entire 2021 tax year.
  • You filed a 2020 Montana resident or part-year resident tax return by the due date, including extensions.
  • You filed a 2021 Montana tax return by the due date, including extensions.
  • You were not claimed as a dependent by another taxpayer in 2021.
  • Your Montana tax liability after any nonrefundable credits was greater than $0.0.

Individuals do not need to do anything to claim this rebate as the Montana Department of Revenue will automatically send them a rebate if they qualify.

The rebate amount will be the lesser of:

  • The amount of your Montana income tax liability on line 20 of your Montana tax return. OR
  • $1,250 for single, married filing separately or head of household filing status; $2,500 for married filing jointly.

Depending on how individuals received their refunds / paid their tax bills in 2021 (by mail or electronically), the same method will be used in receiving this tax rebate. Individuals can expect these rebates to be distributed starting as early as July 2023, and will end on December 31, 2023.

House Bill 222
House Bill 222, also known as the Property Tax Rebate bill, is a tax rebate for property taxes paid on a principal residence for 2022 and 2023, with a rebate amount of up to $500 per year. The 2022 property tax rebate includes property taxes paid in November 2022 (first half) and May 2023 (second half). The 2023 property tax rebate includes property taxes paid in November 2023 (first half) and May 2024 (second half).

You can qualify for this rebate if both of these are true:

  • You owned and lived in a Montana property as your principal residence for at least seven months in 2022 and 2023.
  • You were assessed and paid property taxes on the same residence for the 2022 and 2023 years.

For 2022 and 2023, the property tax rebate amount will be the lesser of:

  • The actual amount of property taxes paid for the residence. OR
  • $500.

Unlike the income tax rebate, individuals will need to apply for this rebate for both 2022 and 2023.

For the 2022 property tax rebate, beginning August 15, 2023, individuals can apply by going online to the TransAction Portal, or by paper / regular mail. All claims must be submitted by October 1, 2023.

For the 2023 property tax rebate, the application date will open on August 15, 2024, and end on October 1, 2024.

If you want to learn more about these rebate programs, visit the Montana Department of Revenue’s webpage: 2023 Montana Tax Rebates.

Here at JCCS, we’ve been tracking this legislation and new law, and are available to help you as you need.

* This article is not a complete listing of all the details related to this business / accounting topic and you should contact your CPA for a more detailed discussion regarding these items and how they may apply to your specific situation.

Photo credit: Karolina Grabowska,