The New Homestead Act
Posted by PollyAnna Snyder on
Montana Homestead Act
Background on the Changes
Montana's property tax system was restructured through bills like HB 231 and SB 542 in the 2025 legislative session. The goals included:
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Reducing taxes for most owner-occupied homes and stable long-term rentals.
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Not a great narrative and hardly true, lots of second homes and most short term rentals are owned by Montana residents
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Implementing a more progressive, tiered rate structure based on home value.
A transitional phase occurred in 2025, with interim tiered rates and a one-time up-to-$400 rebate for qualifying primary residences (for taxes paid in 2024, claimed by October 2025). The full system kicked in for 2026 taxes.
Key Features of the Homestead Reduced…
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