2026 brings new tax reliefs for many taxpayers that include property tax reductions! In this article, we will focus on the new Montana tiered system, tax rates for residential properties, and rebates on principal residence.
First, let’s remember that the One Big Beautiful Bill Act increased the SALT (State and Local Taxes) deduction limit to $40,400 (2026) for joint filers ($20,200 if married filing separately) from the previous $10,000 limit.
Note that this limit is set to adjust 1% every year until 2033.
For more information on the SALT deduction and how it may apply to you, see these related articles:
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Important to consider, this deduction phases out for taxpayers with gross income over $505,000 or $202,500 married filing separately, but it will not go below $10,000.
Montana changes
There is a new property tax structure for 2026, which reduces property taxes for primary homes and long-term rental properties.
According to MT DOR, if you received the 2025 property tax rebate and still own and live in the home for 7+ months of 2026, you automatically qualify for this tax reduction.
Long-term rentals (rented for 28+ days for at least 7 months/year) also qualify. However, taxpayer must enroll directly with the Montana Department of Revenue at this link Tax Relief for Homesteads and Long-term Rentals as soon as possible. The application window closes March 1, 2026.
What properties are eligible?
Single-family homes, townhomes, condominiums
Single-family homes on non-qualified or qualified agricultural land or forest land
Manufactured/mobile homes (including up to 1 acre of land)
Other Buildings and Yard improvement with living space and a 1-acre homesite
The reduced tax rate follows a tiered structure based on the 2025–2026 statewide median home value, currently estimated at $378,000 as follows:
Tax Rate | Assessed Value |
|---|---|
0.76% | <$378,000 (up to statewide median) |
0.90% | $378,001 to $756,000 (median to 2x median) |
1.10% | $756,001 to $1,511,999 (2x to 4x median) |
1.90% | ≥$1,512,000 (4x median or greater) |
Manufactured/mobile homes used as a primary residence or long-term rental qualify for the tiered tax rate
If the land and home are under the same ownership, up to 1 acre of land qualifies as well
For additional information visit 2026 Tax Information for Montana Property Owners or contact one of our tax professionals at Swanson Agency. We are always glad to assist you.
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