Montana's average effective property tax rate is roughly 0.72%–0.78% of assessed home value (WalletHub puts it at 0.72%, tied with Mississippi, ranking the state 19th-lowest in the U.S.; other trackers cite figures from 0.61% up to 0.78% depending on methodology and year). All of these are well below the ~0.99%–1.1% national average, making Montana one of the more tax-friendly states for homeowners on a rate basis — though this is offset somewhat by Montana having no sales tax, so property tax carries more weight in local funding, and by relatively high home values in fast-growing areas like Gallatin County (Bozeman), which push actual dollar bills higher despite the low rate. Montana overhauled its residential property tax system starting with tax year 2025 and continuing into 2026, shifting toward a tiered rate structure that favors owner-occupied primary residences and long-term rentals over second homes/short-term rentals.
Example: Concrete 2025 examples after Montana's new tax law took effect: the median-value home in Gallatin County (Bozeman area, ~$685,000) saw its tax bill drop from $3,730 to $2,710 (a ~27%, $1,020 savings). Other urban counties saw similar dollar relief: Yellowstone County (Billings) homeowners saved about $757, Cascade County (Great Falls) about $681, Flathead County (Kalispell) about $809, and Lewis and Clark County (Helena) about $807 on their median residence. In rural, lower-value counties, the median residential tax bill after the changes was much lower — around $249. For 2026, the Montana Department of Revenue is applying a new tiered homestead rate structure keyed to an estimated statewide median home value of about $379,000, with homeowners who did not enroll in the homestead program being taxed at a flat 1.9% of assessed value (with a refund process available in 2027 for eligible homeowners who missed enrollment).
Montana's property tax system changed substantially for 2025 and again for 2026 — it now distinguishes primary residences/long-term rentals (lower, tiered rates) from second homes and short-term rentals (flat 1.9% rate) — so any pre-2025 rate or exemption information found online (including the old flat rebate) is outdated. Homeowners must proactively enroll for the Homestead Reduced Rate each year through the Montana Department of Revenue (revenue.mt.gov / homestead.mt.gov); failing to enroll by the deadline means paying the higher flat rate up front, with only a delayed refund option the following year.
Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.