Big Tax Changes Coming in 2026: What Montana Homeowners Need to Know

Montana homeowners—big changes are coming to your property taxes in 2026. A new Homestead Reduced Tax Rate is being rolled out, and while some folks will be automatically enrolled, others must take action to lock in their savings.

Here’s everything Gallatin Valley homeowners need to know—and how Ridge Realty eXp is here to help you stay ahead.

📆 Application Window: Dec 1, 2025 – March 1, 2026

If you own a home in Montana, this is one date range you’ll want to circle in red. Why? Because failure to apply during this window could mean missing out on a reduced property tax rate for 2026 and beyond.

✅ Who’s Automatically Enrolled?

Good news for some:
You’re automatically enrolled in the Homestead Reduced Tax Rate if you:

• Received a property tax rebate in 2025, and

• Still own and live in the home for at least 7 months of 2026.

✔️ If this is you, you don’t need to apply—you’re already covered!

📝 Who MUST Apply?

Now, here’s where you’ll want to pay attention.

You must apply between Dec 1, 2025 and March 1, 2026 if:

➤ You’re a Primary Residence Owner who:

• Did NOT claim the 2025 property tax rebate, or

• Changed your primary residence since receiving the rebate.

➤ You own Long-Term Rental Property:

Even if you’re not living in the home, if you rent it out long-term, you’ll need to apply for the new reduced rate.

🔍 What is the Homestead Reduced Tax Rate?

Montana’s Department of Revenue is introducing a tiered tax rate system to provide relief to homeowners—especially those who live in their homes full time. The idea is to create fairness across the board and help protect Montanans from sharp tax increases due to rising home values.

This shift benefits local homeowners but requires attention to detail and timely action.

🧭 Ridge Realty eXp’s Pro Tip:

Whether you’re planning to stay put or considering selling your home in the next year, these tax changes could affect your bottom line. The reduced rate may:

• Impact your home’s monthly affordability

• Influence your selling timeline

• Be a great talking point for buyer incentives if you’re listing a home

Want help figuring out how these changes affect your specific situation? Reach out to us—we’re here to guide you every step of the way.

📲 Stay Informed and Ready

Visit the official site to learn more about the Homestead & Long-Term Rental tax changes:
👉 https://revenue.mt.gov/property/property-tax-changes/homesteads-and-long-term-rentals

Let’s Chat

Have questions about how this impacts your home or investment property in Bozeman, Belgrade, or anywhere in the Gallatin Valley? Get in touch with Eric Linville and the team at Ridge Realty eXp. We bring 25+ years of local experience and personalized service to every conversation.

📧 Email: linville406realty@gmail.com
🌐 Website: www.ridgerealtymt.com
📱 Facebook: Ridge Realty Group MT
📹 YouTube: Ridge Realty Group Channel