Montana Landlords: Do This Now to Avoid Higher Taxes in 2026

Montana property taxes are changing in 2026, and if you own rental real estate, these changes could mean significant tax savings, or a major tax increase if you don’t take action.

The state is restructuring how residential properties are classified and taxed, shifting more of the tax burden to second homes, vacation properties, and short-term rentals (Airbnb/VRBO). Meanwhile, primary homes and long-term rentals will benefit from newly created “homestead” rates, but only if you’re properly enrolled.

Here’s what every Montana homeowner and landlord needs to know.

Montana’s New 2026 Property Tax Structure

Tiered Rates for Primary Homes & Long-Term Rentals

Starting in 2026, properties used as:

• Primary residences (occupied by the owner at least 7 months of the year), or

• Long-term rentals (rented at least 7 months of the year on a monthly or longer basis)

…will qualify for the new homestead property tax rates.

Flat Tax Rate for Second Homes & Short-Term Rentals

Beginning in 2026, properties that do not qualify as a primary residence or long-term rental will be taxed at: A flat 1.9% of full assessed value

This applies to:

• Second homes

• Vacation cabins

• Airbnb/VRBO units

• Any property not certified as long-term residential use

For many owners, this will amount to a 60–68% cumulative tax increase by 2026.

This is why landlords must register long-term rentals now.

Why You Need to Register Long-Term Rentals in Montana

Montana offers a reduced property tax rate for homes that are rented long-term (28 days or more at a time) because these properties help meet local housing needs and are not used as short-term rentals.

This is part of the state’s revised Residential Property Tax Assistance / Residential Rental Classification system.

The Key Benefit

If your property qualifies as a long-term rental, the state applies a lower tax rate than it does for:

• Vacation properties

• Short-term rentals

• Second homes

   

Why the State Requires Registration (Self-Certification)

The Department of Revenue uses your certification to:

• Confirm the property is not used as a short-term rental

• Categorize it correctly as a long-term residential rental

• Apply the correct (lower) tax classification

• Avoid misclassifying it as a vacation home or commercial property

If you don’t register, your property may default to the higher 1.9% rate.

How to Register Your Long-Term Rental in Montana

The registration process is straightforward, and you can do it online. Here’s how:

✅ Step-by-Step Registration Process

1. Go to the Portal

Visit: homestead.mt.gov

2. Log In or Create an Account

You’ll need:

• Email

• Password

• Property address

If you're creating a new account, you may have to log in again afterward to reach the enrollment page.

3. Click “Enroll Online”

Select: Enroll Online (Long Term Rental)

4. Locate Your Property

You’ll need the Geocode (found on your tax bill). If you don’t have it handy, let us know and we can help you look it up.

Enter the Geocode → Search → Select your property.

5. Complete the Long-Term Rental Certification

You’ll confirm:

• The home is rented for 28+ days at a time

• It was not used as a short-term rental

• It is rented for long-term residential use

You may also be asked for:

• Yearly total rental income

• Yearly total rental expenses

For multi-family properties you fully own:
You must download the Multi-Family Reporting Spreadsheet, enter monthly gross rent for each unit, save it, and upload it on the next page.

For single-family homes or individual condo/townhome units:
No spreadsheet is required.

If your property is in a Trust, LLC, etc, you may also need to provide:

• Tax ID number

• Ownership documentation

No lease documents are required, the system uses self-reporting.

6. Submit

After you submit, the Department of Revenue updates the property’s classification for the tax year.

Note: These changes won’t impact your bill until the 2026 tax cycle.
If your application is denied, the state will notify you by mail or email.

⚠️ Important Deadline

The deadline for applications is March 1st, 2026.

Final Thoughts

The 2026 Montana tax overhaul creates a tax break opportunity for landlords and an even bigger risk for anyone who ignores the new rules.

• Long-term rental owners: Register now to lock in lower taxes.

• Second home & short-term rental owners: Prepare for higher tax bills.

• Homeowners: Double-check your homestead enrollment.

A few minutes of registration can save you thousands in the coming years.