Montana Homestead Tax Rate: Apply by March 1 for 2026 Savings

Montana Governor Greg Gianforte is urging residents to apply for a new property tax reduction program before the March 1 deadline, a move intended to deliver on a commitment to provide lasting property tax relief across the state.

The program, established through House Bill 231 and sponsored by Representative Llew Jones, offers a “Homestead Reduced Rate” for primary residences and long-term rental properties. Governor Gianforte stated that approximately 80% of Montana homeowners saw lower property taxes last year as a result of earlier reforms, and this new program aims to build on that progress. Homeowners who already claimed a property tax rebate are automatically enrolled for the lower rate this year, but are encouraged to verify their status.

Property taxes in Montana are largely determined at the local level, with roughly 80% of revenue from residential homeowners funding local government services. The remaining 20% goes to the state, which then returns the full amount to support K-12 public education throughout Montana. This structure underscores the importance of local control within the state’s property tax system.

To qualify for the Homestead Reduced Rate in 2026, applicants must demonstrate that they own and reside in their Montana home as their principal residence for at least seven months of the year. The application process requires providing the property’s physical address, a geocode, and the Social Security numbers of all property owners.

A separate application process is available for the Long-Term Rental Reduced Rate. Properties must be rented to tenants for periods of 28 days or longer for a minimum of seven months annually. Applicants will need to provide property details, owner information, and documentation of rental income and expenses.

The push for property tax relief comes after a period of rising property values in Montana, which had placed a financial strain on many homeowners. In November, Governor Gianforte announced that nearly 80% of homes would experience a tax cut due to the reforms, with approximately 10% seeing no change. The average savings for homeowners who benefited from the cuts exceeded $500, excluding the potential for an additional rebate of up to $400 for eligible homeowners.

Senate Bill 542, sponsored by Senator Wylie Galt, further contributed to the relief efforts by establishing new, tiered tax rates for homes, small businesses, farms, and ranches. This bill also provided the aforementioned property tax rebate for primary residences, allowing eligible Montana homeowners to claim up to $400 for property taxes paid in 2024.

More than 235,000 Montana homeowners claimed and received the property tax rebate last year. Those who did so are likely already enrolled in the Homestead Rate for 2026, provided they have not moved or transferred ownership of their property during 2025.

Governor Gianforte’s administration has emphasized the importance of proactive enrollment, encouraging homeowners to verify their status and apply for the reduced rates through the dedicated website, homestead.mt.gov. A video announcement from the Governor detailing the program is also available online.

The broader context of these reforms is Governor Gianforte’s ongoing effort to review and revise state regulations, aiming to reduce burdens on businesses and residents alike. His administration has highlighted job and wage growth in Montana, attributing some of this success to policies designed to “open Montana for business.” The state has also reported near-record low unemployment rates for four consecutive years, and a record number of business creations in 2024, with over 63,800 new businesses established.

The governor’s office has also been focused on cutting red tape across state agencies, seeking input from citizens on regulations they deem unnecessary or burdensome. This initiative reflects a broader Republican platform of limited government and economic deregulation.

Greg Gianforte, the 25th governor of Montana, previously served as the state’s at-large representative in the U.S. House of Representatives from June 21, 2017 to January 3, 2021. Before entering politics, he co-founded RightNow Technologies, a customer relationship management software company, which was later acquired by Oracle Corporation for $1.5 billion in 2011.

The success of these property tax relief measures and the broader economic initiatives will likely be a key focus as Governor Gianforte continues his term, particularly as Montana navigates the challenges of a changing economic landscape and a growing population.