Montana Mortgage Calculator
Montana just overhauled how it taxes homes, cutting rates for primary residences while raising them on second homes and short-term rentals — pick your county below to see your real payment.
Loan & Property Details
Auto-fills from the county selected above; the Homestead toggle below adjusts this for the new 2026 tiered rate system.
Your Estimated Monthly Payment
Choose a county and enter your details to see a plain-language read on your payment.
What If You Paid Extra Toward Principal?
Slide to test an extra monthly payment and see how many years and how much interest it saves.
What If Your Rate Changes?
Your 5-Year Equity Snapshot
Good to Know: Montana Charges No Real Estate Transfer Tax
This is one closing cost you genuinely won’t see in Montana, buyer or seller.
| State real estate transfer tax | None |
| County or municipal transfer tax | None |
| What you’ll still see on the settlement statement | Standard title insurance, recording, and closing fees only |
| Comparable cost in a state with a transfer tax | Often 0.1%–4%+ of sale price elsewhere in this calculator series |
Montana Just Rewrote Its Property Tax System — Here’s What Actually Changed
If you looked up Montana property tax even a year ago, you’d have found a flat class rate applied statewide, on top of local mill levies that vary by county. That’s gone. Between the 2024 and 2025 reappraisal cycles, Montana’s median residential value jumped 22% in a single reassessment, and the backlash was significant enough that the 2025 Legislature passed two companion bills, House Bill 231 and Senate Bill 542, that fundamentally restructured how homes get taxed starting with tax year 2026. The new system deliberately treats an owner-occupied home differently from a second home or short-term rental, something Montana never did before.
The Homestead Reduced Rate: lower taxes for living in your home
Properties that qualify as a primary residence, occupied at least seven months of the year, or a qualifying long-term rental, leased in stretches of 28 days or longer for at least seven months of the year, now receive a graduated, tiered tax rate that runs meaningfully lower than what non-qualifying properties pay. Everything else, second homes, vacation properties, and short-term rentals like Airbnb or VRBO units, gets taxed at a flat 1.9% of assessed value starting in 2026, a substantial increase from the old flat rate. Early estimates from the state put the average savings for a qualifying primary residence homeowner at roughly 18% versus what the old system would have charged, while non-qualifying property owners can see cumulative increases in the 60% range once the reappraisal and rate change are combined. Enrollment isn’t automatic for everyone: homeowners who claimed the 2025 property tax rebate are typically carried over automatically if they haven’t sold or transferred the property, but everyone else needs to actively apply with the Department of Revenue, and the deadline for the 2026 tax year was March 1.
Yellowstone, Missoula, Gallatin, and Flathead: how the four biggest counties compare
Yellowstone County, home to Billings, Montana’s largest city, runs moderate home values with a tax rate close to the state average. Missoula County, anchored by the university town of Missoula, runs a slightly higher effective rate. Gallatin County, home to Bozeman and one of the fastest-growing housing markets in the Mountain West, carries the highest median home values of the four alongside a comparatively lower effective rate. Flathead County, covering Kalispell and the Whitefish and Flathead Lake resort areas, runs the lowest effective rate of the four, though a meaningful share of its housing stock is precisely the kind of second-home and short-term-rental property that now faces the higher 1.9% non-qualifying rate. Switching counties above resets both price and rate defaults to match.
A lawsuit over the new system is still working through the courts
As of this writing, a legal challenge alleging that Senate Bill 542 is unconstitutional remains pending. The outcome could affect how the tiered rate structure ultimately holds up, though the Homestead Reduced Rate has already taken effect for the 2026 tax year under current law. If you’re timing a purchase around Montana’s new system, it’s worth checking for updates on this litigation before finalizing long-term tax assumptions.
Relief programs that stack on top of the new rate structure
Separately from the Homestead Reduced Rate, Montana’s Property Tax Assistance Program reduces the taxable value used to calculate a qualifying low-income homeowner’s bill, with income limits historically around $26,500 for a single filer and $35,000 for a married couple. The state’s Elderly Homeowner and Renter Credit, claimed on Form 2EC with your Montana income tax return, offers a refundable credit up to roughly $1,150 for those 62 and older with household income under about $45,000. Both are separate applications from the Homestead Reduced Rate enrollment, and neither is automatic.
Common Mistakes Montana Buyers Make With the Numbers
- Assuming last year’s “Montana property tax rate” still applies. The system changed substantially for tax year 2026; older estimates and guides may be out of date.
- Missing the Homestead Reduced Rate enrollment deadline. It requires an active application by March 1 in most cases, not automatic qualification just by living there.
- Buying a cabin or lake house without budgeting for the 1.9% non-qualifying rate. Second homes and short-term rentals now carry meaningfully higher property tax than a primary residence on the identical property.
- Assuming the tiered rate is identical everywhere. It’s a statewide rate structure, but the local mill levy layered on top still varies by county and taxing district.
- Not watching the pending SB 542 lawsuit. The legal outcome could still affect how the system is applied going forward.
Tips for Lowering Your Montana Mortgage Payment
- Enroll for the Homestead Reduced Rate with the Department of Revenue as soon as you close, and note the March 1 annual deadline for future tax years.
- If a borrower on title is 62 or older or income-qualifies, apply for the Property Tax Assistance Program and the Elderly Homeowner Credit separately from the Homestead enrollment.
- If you’re buying a second home or considering short-term rental income, model the property at the 1.9% non-qualifying rate, not the lower homestead rate.
- Compare effective rates across county lines, not just home prices, especially between Gallatin and Flathead’s resort-driven markets.
- Use the extra-payment scenario above; even a modest additional principal payment compounds meaningfully over a 30-year Montana loan.
Frequently Asked Questions
What is Montana’s new Homestead Reduced Rate?
A lower, graduated property tax rate for primary residences occupied 7+ months a year and qualifying long-term rentals, effective for tax year 2026 under House Bill 231 and Senate Bill 542, replacing the old flat statewide class rate.
How much is property tax on a second home in Montana?
Second homes, vacation properties, and short-term rentals that don’t qualify for the Homestead Reduced Rate are taxed at a flat 1.9% of assessed value starting in 2026, a significant increase from the prior system.
Do I need to apply for Montana’s Homestead Reduced Rate?
Yes, in most cases. Homeowners who claimed the prior year’s property tax rebate may be automatically enrolled if ownership hasn’t changed, but everyone else must actively apply with the Department of Revenue by the annual deadline, typically March 1.
Is Montana’s new property tax law being challenged in court?
Yes, a lawsuit alleging Senate Bill 542 is unconstitutional remains pending as of this writing, though the Homestead Reduced Rate has already taken effect under current law.
What is Montana’s Property Tax Assistance Program?
An income-tested program reducing the taxable value used to calculate a qualifying low-income homeowner’s bill, with income limits historically around $26,500 single or $35,000 joint.
Does Montana have a real estate transfer tax?
No, Montana charges no state or local real estate transfer tax.
Which Montana county has the lowest property tax rate?
Among the state’s larger counties, Flathead and Gallatin generally run lower effective rates than Yellowstone or Missoula, though a meaningful share of homes in resort areas now face the higher non-qualifying rate.
What down payment do I need to buy a home in Montana?
Conventional loans often start around 5% down, FHA loans typically require 3.5%, and VA loans can allow 0% down for eligible veterans.
When can I remove PMI on a Montana home loan?
Federal law allows requesting PMI removal at 20% equity, with automatic lender cancellation at 22% equity based on the original amortization schedule.
Does this calculator include closing costs?
No, this tool estimates the ongoing monthly payment only. Montana closing costs typically add a modest percentage of the purchase price, without any transfer tax added.
References
- Montana Department of Revenue, Homestead Reduced Rate, PTAP, and Elderly Homeowner Credit guidance – mtrevenue.gov
- Yellowstone, Missoula, Gallatin, and Flathead County Assessor offices, current mill levies – county government sites
- Montana House Bill 231 and Senate Bill 542 (2025 legislative session)
- Freddie Mac Primary Mortgage Market Survey, weekly national rate averages – freddiemac.com/pmms
Related DexoCalc Tools
This Montana mortgage calculator is part of the Mortgage Calculators cluster I am building out on DexoCalc. Start with the national Mortgage Calculator to compare Montana against any other state, see another state where new legislation reshaped the tax bill in the Michigan Mortgage Calculator, compare a very different revenue-limiting approach in the Indiana Mortgage Calculator, or check a state at the opposite tax extreme in the New Jersey Mortgage Calculator. Browse every state-specific tool as new ones publish on the full Mortgage Calculators hub.
This calculator provides estimates for educational purposes only and is not a loan offer, pre-approval, or substitute for advice from a licensed Montana mortgage professional or tax advisor. Property tax, rate-tier, and credit figures are approximations that vary by county, enrollment status, and individual circumstances, and remain subject to pending litigation; confirm exact figures with the Montana Department of Revenue. Sources: Montana Department of Revenue, county assessor offices, Freddie Mac.