Bjorn Swanson

🏡 Montana Property Taxes Are Changing Again 

Here’s What It Means for Your Home, Land, or Business 

Montana property taxes have been a moving target the last few years — between sudden valuation spikes, surprise bills, and rebate programs you have to chase down, it’s been a bit of a mess. 

Now they’re changing *again *in 2026. 

If you've heard rumblings, you may have questions. 
If you haven’t — now you know. Either way, you deserve a clear explanation. 

This isn’t a lecture. It’s a real-world breakdown of what’s happening, who it affects, and what you need to do (if anything). We’ve kept it tight, skipped the jargon, and added Swanson Takeaways throughout — so you can understand exactly how this impacts your bottom line. 

🔗 Full legislative summary here » 

🏠 If You Live in Your Home Full-Time (Primary Residence) 

You’re eligible for a $400 property tax rebate on your 2024 taxes — but it’s not automatic. 
You have to apply in 2025. 
And doing that unlocks lower tax rates on your home starting in 2026 — no second application required. 

✅ What to Do: 

• Apply between August 15 and October 1, 2025 

• Application is online or by mail.  

• You must have lived in the home at least 7 months during 2024 

🔍 Swanson Takeaway: 
If this is your home, apply for the rebate in 2025. 
It puts money back in your pocket now and ensures you don’t pay more in 2026. 

🏘 If You Rent Property Long-Term (28+ Day Leases) 

If you lease a home or apartment to long-term tenants who live there at least 7 months a year, you can qualify for the same reduced rates homeowners get — starting in 2026. 

But the state won’t just assume that — you need to certify it. 

✅ What to Do: 

• Apply between December 1, 2025 and March 1, 2026 

• Certify the use with the Montana Department of Revenue 

• Keep records showing lease terms and tenant occupancy 

🔍 Swanson Takeaway: 
If it’s a genuine long-term rental, claim the lower rate. 
If you don’t, the state will treat it like a short-term rental — and tax it like one. 

🏕 If You Own a Second Home or Short-Term Rental 

This is where the increase hits hardest. 
Starting in 2026, second homes, cabins, Airbnbs, and short-term rentals will be taxed at the highest residential rate. 

This includes: 

• Vacation homes 

• Properties rented for fewer than 28 days at a time 

• Inherited homes that sit vacant 

• Cabins or second homes used only part of the year 

• Properties you split time between — even within the same household 

💬 Client FAQ we expect: 
“Can my spouse and I each claim a different home?” 
“I live at the cabin in summer, the house in winter — doesn’t that count?” 

Nope. Under the law, you can only claim one principal residence per household. 
You can’t split time and claim both. The state wants to see year-round primary use, and you’ll be required to certify that when you apply for the rebate. 

🚫 What to Do: 

There’s no exemption or workaround here. 
You can’t reclassify a second home or seasonal property to avoid the rate increase. 

🔍 Swanson Takeaway: 
Only one home gets the preferred rate. 
If it’s not your full-time home — even if it’s family-owned or used part-time — you’ll pay the higher rate. 

🌾 If You Own Agricultural Land (Especially Under 160 Acres) 

If your property is 160+ acres and already classified as ag land, you’re likely good to go — you’ll get a modest tax cut, and no action is needed. 

But if your parcel is under 160 acres, you’ll need to prove it’s in active agricultural use to get the same treatment. 

✅ What to Do: 

• Visit Montana Cadastral to see how your land is currently classified 

• If it's labeled “non-qualified ag” but you're actively grazing, growing, or leasing: 

• You’ll need to show $1,500+ in ag income for 3 years 

• Then apply through your local DOR field office 

• Full details: Summary of Agricultural Land Classification Eligibility Requirements 

🔍 Swanson Takeaway: 
If your land is working land, get it properly classified. 
It’s the difference between a fair bill and a steep overcharge. 

🏢 If You Own Commercial Property 

Offices, retail spaces, and income-generating properties will see higher taxes in 2026 under the new structure. There’s no form to file — the rates are baked in. 

🔍 Swanson Takeaway: 
You don’t need to do anything, but expect an increase. 
If you run a business or own commercial rentals, budget accordingly. 

✅ What Should You Do? 

💬 Need a Hand? 

We don’t manage property tax filings here — but we’re always happy to point you in the right direction: 

• DOR Main Line: (406) 4446900 

• Look up your property: Montana Cadastral » 

• Find your local DOR office: Contact page » 

• Read the full legislation summary: Download PDF » 

👋 Final Thought from Bjorn 

I get it — it’s hard to keep up with what’s changing, and it’s frustrating when the rules feel like they keep moving. 

But here’s what I want you to hear from me directly: 
You shouldn’t have to guess where you stand. 
You shouldn’t need a law degree to protect your own wallet. 

This isn’t about finding loopholes — it’s about knowing the rules and making smart, timely decisions. That’s what we’re here for. 

If you’ve got a question, reach out. 
We may not file these forms, but we’ll always point you in the right direction. 

— 
Swanson Agency 
Montana Roots. Future Focused.