Helena, Montana – Montana homeowners are being reminded that the deadline to secure lower property tax rates for the coming year is fast approaching. State officials say the new Homestead Reduced Rate program is a key part of broader reforms designed to ease the burden of rising property taxes and provide lasting relief for residents.
Governor Greg Gianforte announced that homeowners have until March 1 to apply for the 2026 Homestead Reduced Rate on their primary residence and qualifying long-term rental properties. The program is part of ongoing property tax reforms aimed at delivering permanent savings.
“Recognizing the burden of rising property taxes, we worked with the Legislature to deliver permanent and meaningful property tax relief,” Gov. Gianforte said. “Thanks to our reforms, 80% of Montana homeowners saw lower property taxes last year. While those who claimed a property tax rebate are already enrolled for the lower rate this year, homeowners can verify their status or claim the lower rate by visiting Homestead.MT.gov.”
How the Homestead Reduced Rate Works
Property taxes in Montana primarily support local services. Approximately 80 percent of property tax revenue from residential homeowners goes directly to local jurisdictions, while the remaining 20 percent goes to the state and is returned in full to help fund K-12 public schools.
Beginning December 1, 2025, homeowners became eligible to apply for the Homestead Reduced Rate for the 2026 tax year. To qualify, applicants must attest that they will own and occupy the Montana home as their principal residence for at least seven months during 2026. When applying, homeowners must provide the property’s physical address, geocode, and the names and Social Security numbers of the property owners.
House Bill 231, sponsored by Rep. Llew Jones of Conrad, established the Homestead Rate. The new rate lowers property taxes for primary residences and long-term rental properties beginning this year.
Homeowners who qualified for and received the 2025 property tax rebate will automatically qualify for the 2026 Homestead Reduced Rate if ownership has not changed and the property remains their primary residence.
Relief Also Available for Long-Term Rentals
The application period is also open for the Long-Term Rental Reduced Rate. To qualify, properties must be rented to tenants as their residence for periods of 28 days or longer for at least seven months of the year. Applicants must provide property details, owner information, and rental income and expense information.
These reforms are part of a broader effort to stabilize property taxes while supporting housing stability across the state.
Tax Savings and Legislative Reforms
In November, the governor announced that nearly 80 percent of homes will see a tax cut from the reforms, while about 10 percent will see taxes remain flat. The average savings for homeowners who received a tax cut exceeded $500, not including a property tax rebate of up to $400 available to eligible homeowners.
Senate Bill 542, sponsored by Sen. Wylie Galt of Martinsdale, established new tiered tax rates to deliver property tax relief for homes, small businesses, farms, and ranches beginning in 2025. The legislation also created the property tax rebate program for primary residences. Eligible homeowners were able to claim rebates of up to $400 last year for property taxes paid in 2024.
More than 235,000 Montana homeowners claimed and received the rebate. Those who received the rebate in 2025 may be automatically enrolled in the Homestead Rate for 2026 if they did not move or change ownership.
Officials encourage residents to confirm their enrollment status or submit an application before the March 1 deadline. Montanans can verify enrollment or apply for both the Homestead Reduced Rate and the Long-Term Rental Reduced Rate by visiting homestead.mt.gov.
State leaders say the program represents a meaningful step toward long-term property tax relief while ensuring continued funding for local services and public education.
