Over 60% of Montanans did not know to file for the Homestead Exemption last year and missed out on both the refund from the state as well as the designation that their property is their primary residence.
It just opened back up again for 2027 and if you missed it previously, you can appeal it January 1, 2027 at 12:01am.
To qualify for the Homestead Reduced Rate, all the following must be true:
- The property is your principal residence for at least seven months each year,
- You or your revocable grantor trust own the property,
- You are current on all property tax payments, and
- This is the only residence you will claim a Homestead Reduced Rate for.
A Montana homestead declaration protects home equity from creditors and is filed with your County Clerk and Recorder. A homestead declaration does not qualify you for the Homestead Reduced Rate. The Homestead Reduced Rate is a property tax classification claimed through the Montana Department of Revenue. The two are separate legal mechanisms.
You must live in the home as your principal residence for at least seven months per year. The months do not need to be consecutive. Short absences (vacations, medical stays, or military deployments) generally do not impact eligibility if the home remains your principal residence.
Only revocable grantor trusts qualify if the occupant is the grantor and uses the home as their principal residence.
Homes owned by other entities like irrevocable trusts or LLCs do not qualify for the Homestead Reduced Rate. However, those properties may qualify for the Long-Term Rental Reduced Rate if they meet the requirements of and enroll in that program.
If you purchased the property after the previous deadline of May 31, 2026, can you apply?
Yes, but how it is applied depends on the property’s prior enrollment status:
- If the home was already enrolled for a reduced tax rate (homestead or long-term rental) before your purchase, that reduced rate will remain in place for 2026, and your tax bill will reflect the reduced rate. You will need to enroll your property for the homestead reduced rate for it to continue beyond the end of the year.
- If the home was not previously enrolled, the property will be taxed at the flat rate of 1.9% for 2026, but you can claim a refund of the difference between the flat rate and the homestead rate between January 1, 2027, and May 31, 2027. You will also need to enroll your property for the homestead reduced rate for it to apply in 2027.
You do not need to enroll if you received a property tax rebate in 2025 and still own and live in the same home for at least 7 months in 2026. You don’t need to take any further action; you’re already enrolled for the reduced tax rate.
You can verify your enrollment here: Verification Page.
You must enroll if:
- You no longer use the dwelling that qualified for the 2025 rebate as your principal residence,
- You moved,
- The property was sold or transferred, or
- Ownership has changed since you received the rebate, even to a LLC or Trust, name change etc.
You will also need to enroll if you did not get a property tax rebate in 2025 or you recently bought or built a new home.
If you have a property in Montana that has been your family's longtime compound but you live in another state, reach out to Courtney for a possible solution.
