Montana Law Shifted Property Tax Burdens in 2026

The Homestead Declaration Act cut costs for primary homeowners while raising bills for investment properties.

Updated on Sept. 23, 2026 in Taxes

Bold flat-color editorial illustration showing two stacked residential house silhouettes in red and black, symbolizing the state's new bifurcated property tax policy. — Montana implemented the Homestead Declaration Act in 2026, shifting property tax burdens to increase costs for investment properties while lowering them for primary residences. AI Illustration. Upload story photo >

Live Poll

Do you support shifting more property tax burden from primary residences onto second homes?

Montana homeowners faced new property tax assessments in 2026 under the Homestead Declaration Act, which was signed into law in 2025. The legislation intentionally shifts the financial burden away from primary residences and toward second homes and investment properties.

Why it matters

This policy change seeks to preserve community affordability for local residents and create incentives for long-term rentals. It creates a distinct financial divide between those who occupy their homes and those who hold properties for investment or secondary use.

The state-mandated assessment changes resulted in a new tax bill of $2,386 on some secondary lots, up from $955 previously, while qualifying primary residents received an estimated $350 rebate.

The players

Greg Gianforte

The Governor of Montana who signed the Homestead Declaration Act into law in 2025.

Department of Revenue

The state agency responsible for issuing property tax assessment letters and managing the taxpayer appeal process.

The details

The Department of Revenue issued new property tax assessment letters to homeowners to implement the legislative mandate. By lowering the tax liability for primary residences and increasing it for second homes, the state aims to discourage short-term ownership models. Taxpayers who believe their specific valuation is incorrect have the option to file a formal appeal through the Department of Revenue.

2025: Governor Greg Gianforte signed the Homestead Declaration Act into law.
2026: The Homestead Declaration Act took effect for the tax year.

Money Landscape

The Homestead Declaration Act marks a significant departure from uniform property tax assessment models in Montana. It aligns with broader regional trends of using tax policy to prioritize local primary residency over outside investment.

Homeowners should review their assessment letters for accuracy and consult with a tax professional regarding eligibility for primary residence rebates. Those who own investment properties should prepare for higher tax liabilities when planning their 2026 budgets.

The takeaway

The new law creates a sharp divide in tax treatment based on property use, making it vital for residents to confirm their primary status with the state. Property owners with questions regarding their new valuations should contact the Department of Revenue to discuss the formal appeal process.