State of Montana Newsroom
80 Percent of Montana Homeowners Get Property Tax Cut With New Reforms
90 percent see no property tax increase
HELENA, Mont. – Governor Greg Gianforte today announced that 80 percent of Montana residential property owners got a property tax cut in 2025, a result of reforms he signed into law earlier this year.
“For years, Montanans have said property taxes are too high, and they’re right,” Gov. Gianforte said. “Our focus has been securing meaningful, long-term property tax relief for Montanans in the place they call home, and we’ve delivered. The data make it clear that these reforms are a win for Montana homeowners.”
According to the Montana Department of Revenue, nearly 80 percent of homes will see a tax cut from the reforms, with about 10 percent seeing property taxes remain flat. The average savings for homeowners who saw a tax cut was more than $500, not including the up to $400 property tax rebate available to eligible homeowners.
Largely a function of local jurisdictions, property taxes fund local government services, with approximately 80 percent of property tax revenue from residential homeowners going directly to local jurisdictions and the remaining 20 percent going to the State of Montana which returns the amount in full to help fund K-12 public schools throughout the state.
Senate Bill 542, carried by Senator Wylie Galt, R-Martinsdale, establishes new, tiered tax rates to deliver property tax relief for Montanans for their homes, small businesses, farms, and ranches in 2025 and provided a property tax rebate for Montanans for their primary residence. Eligible Montana homeowners could claim a rebate up to $400 earlier this year for property taxes paid in 2024.
This year, more than 235,000 Montana homeowners claimed and received a property tax rebate. Montana homeowners who claimed and received a property tax rebate in 2025 may be automatically enrolled in the Homestead Rate for 2026, provided the homeowner did not move or change ownership in 2025.
House Bill 231, carried by Representative Llew Jones, R-Conrad, established the Homestead Rate, which takes effect next year. Recommended by the governor’s diverse, bipartisan Property Tax Task Force, the Homestead Rate is a new, lower property tax rate for long-term rentals and primary residences, the places Montanans call home.
More information about the Homestead Rate may be viewed here.
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