A Guide to Montana’s Property Tax Reforms
In the 2025 legislative session, Montana lawmakers passed two bills that will affect future property taxes. House Bill 231 and Senate Bill 542 bring tiered tax rates for residential, commercial, and agricultural properties. The legislation includes a one-time rebate for principal residences and lower rates for lower-valued properties. It adjusts taxes for higher-valued or non-principal homes, according to the Montana Association of Counties. The new tax rates aim to lower property tax rates on most Montanans’ primary residences, long-term rentals, and smaller commercial properties. The cuts will be offset by higher taxes on other properties such as second homes.
The measures, which were signed into law by Gov. Greg Gianforte in May, will be implemented in 2025 and 2026. New “homestead” tax rates will start in 2026.
Find out more:
- HB 231 & SB 542: Property Tax Changes Summary document, Montana Legislative Office of Research & Policy Analysis
- Questions and answers about Montana’s new second-home tax, Montana Free Press
The one-time rebate will be available for principal residences. The rebate is available to homeowners who owned and resided in their residence for at least 7 months in 2024 and is equal to property taxes paid up to a maximum of $400.
The Department of Revenue (DOR) will mail information about the rebates by June 30, 2025. Homeowners must apply online or return a paper application between Aug. 15, 2025, and Oct. 1, 2025, to receive the rebate, according to the summary document from the State.
