Montana Implements New Property Tax Relief Legislation
In a significant move to reduce property tax burdens for homeowners and long-term rental landlords, the Montana Legislature, alongside Governor Gianforte, has enacted a new tax relief package. This initiative will reduce property taxes on primary residences while introducing higher taxes on other residential properties starting in 2026. The Montanan Department of Revenue anticipates an average tax increase of 68% on second homes.
Eligible for reduced rates are homeowners residing in their properties for at least seven months annually and landlords offering long-term leases. The legislation also includes $400 rebate checks for homeowners, which can be claimed later this year.
Starting in 2026, residents will have to apply for a homestead exemption to avoid higher taxes on properties not meeting primary residency standards. Notably, homes on agricultural land will remain exempt from these changes, a provision aiming to protect worker housing.
Concerns about budgetary impacts on local governments have been addressed, as tax systems will adapt to maintain revenue levels. Although specific details of the tax shifts remain complex, homeowners and landlords can expect average tax reductions of 18% and 22%, respectively, by 2026. Further updates will be shared as additional information becomes available.
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