Montana Homeowners Face Erroneous Higher Tax Bills
The Montana Department of Revenue confirmed some homestead-exempt property owners were wrongly billed higher property taxes this fall.
Updated on Nov. 8, 2026 in Taxes
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The Montana Department of Revenue confirmed a small number of homestead-exempt homeowners received higher property tax bills this fall. The department is reviewing records to correct the rates applied.
Why it matters
The errors arose during implementation of a new property tax structure created by the Montana Legislature in 2025 through two bills signed by Gov. Greg Gianforte. Homeowners and long-term renters are affected by changes that lower taxes on primary homes but raise them on other properties.
Homestead exemption requires residing at the property seven months out of the year and filing an application. The Department of Revenue is receiving hundreds of calls each day, but has not disclosed how many properties were affected.
The players
Montana Department of Revenue
The state agency responsible for administering Montana's taxes, including property tax assessment and the homestead exemption program.
Greg Gianforte
The Governor of Montana, who signed the two 2025 bills that created the new property tax rules.
The details
Some property owners saw their tax bills double even though they had received confirmation of their 2025 homestead exemption. Additional properties outside the homestead-exempt category are taxed at a higher rate unless they are long-term rentals with their own homestead program. The department attributes the errors to the high volume of property changes during the program's rollout.
Timeline
2025: Legislature passed two bills creating the new property tax rules.
Fall 2026: Homestead-exempt homeowners received incorrectly higher property tax bills.
2027: Eligible residents who did not apply may secure the exemption and a property tax refund.
Legal Context
Montana's 2025 property tax overhaul shifts the tax burden toward non-homestead properties, lowering taxes on primary homes and long-term rentals. The errors reported this fall are an early implementation problem with that restructuring.
Homeowners who believe they were wrongly billed should check their homestead exemption status with the Department of Revenue. Residents who meet the seven-month residency rule but never applied may still qualify for a refund in 2027.
The takeaway
Property owners should confirm their homestead exemption status now rather than assume the state applied it correctly. Filing the application is the step that determines whether a property receives the lower rate.
What happens next
Eligible residents who did not apply for the homestead exemption may secure it and a property tax refund in 2027.
Further reading
For broader background, see Taxes coverage on how exemptions and rate structures shape household bills.
Live Poll
Do you think recent property tax changes in your area have made things better or worse?
