Upcoming Tax Changes

Here in Montana, we know how special it is to own a piece of the Big Sky. Whether it’s your family home, a quiet getaway cabin, or an investment property, we believe in being a helpful partner in your ownership journey.

Below is an overview of some changes that could affect residential property taxes across the state. There are two key factors at play: recent legislative changes and the routine statewide property reappraisal.

1. New Legislation for Non-Owner-Occupied Homes

The Montana Legislature recently passed two new laws (House Bill 231 and Senate Bill 542) that will change how certain residential properties are taxed. These changes specifically apply to non-owner-occupied properties, such as:

• Second homes
• Vacation homes
• Short-term rental properties

These new laws are scheduled to take full effect in tax year 2026, which means the changes will first appear on the property tax bills you receive in the fall of 2026. It's important to note that your tax bills for 2024 and prior years do not reflect these adjustments.

2. The 2025–2026 Statewide Property Reappraisal

Separately, the Montana Department of Revenue is conducting its regular biennial property reappraisal for 2025–2026. This is a standard process where the state reassesses property values to align them with the current market.

Given the recent trends in real estate, this reappraisal is expected to result in higher assessed values for many residential properties. This could potentially lead to increased property taxes for both owner-occupied and non-owner-occupied homes, beginning in tax year 2025.

What This Means for You & Your Next Steps

We know that tax information can feel overwhelming. Our goal is simply to help keep you informed. The most important thing you can do is understand how these factors might impact your unique financial situation. To get a clear picture, we encourage you to consult with a qualified professional. A tax advisor or a real estate attorney can provide personalized advice and help you understand the potential tax liabilities for any property you own in Montana. For more information, there is an informative article from Montana Free Press and a common Q & A!