Montana Opens Homestead Exemption Applications, Deadline Looms March 1

The Montana Department of Revenue opened the application period for the new homestead tax exemption on December 1, starting a window that will determine which properties qualify for reduced property tax rates in 2026. The exemption covers both primary residences and long term rentals, but enrollment processes differ. Homeowners who applied for and received the state tax rebate earlier in the year were automatically enrolled according to Department estimates. The agency said roughly 220,000 to 225,000 primary residences are already automatically enrolled, and it expects about 10,000 additional primary residence owners will need to submit applications. Owners of long term rentals must apply directly, and the Department expects 50,000 to 60,000 applications in that category, covering approximately 115,000 housing units.

The exemption will lower property tax rates on parcels that receive it beginning with the 2026 tax year. Conversely properties that do not receive the exemption may face higher tax rates as the tax burden is redistributed across the remaining tax base. That shift has direct implications for homeowners, landlords, renters and county budgets in Lewis and Clark County. For homeowners who qualify the change could mean measurable annual savings in property tax bills. For owners of rental housing the requirement to apply directly means a new administrative step and potential effects on rent setting as landlords adjust to different tax liabilities.

Local governments and taxing jurisdictions will need to account for the redistribution when setting mill levies and budgets for schools, road maintenance and other services. County officials will also see an influx of inquiries as residents verify their enrollment status. Residents who want to ensure they receive the homestead exemption for the 2026 tax year must apply by March 1. The Department of Revenue offers both online and paper application options and has posted guidance and forms on its website. Lewis and Clark County homeowners and rental property owners should check their enrollment status and submit any required applications before the deadline to lock in the exemption for next year.