Montana Property Taxes
Buying a house in Billings? Missoula? Helena? If so, it’s a good idea to get familiar with the Montana property tax system. Montana has relatively low taxes on residential real estate. The state’s average effective property tax rate is 0.74%, well below the U.S. average, which currently stands at 0.99%.
In part, rates in Montana are low because the system is structured to reduce the burden on homeowners. The taxable value for an owner-occupied residential property is only a small percentage of the property’s market value. Commercial and business property also receive big exemptions.
If you are buying a house in Montana, it’s also a good idea to familiarize yourself with the details of getting mortgage in the Big Sky State. You can find this information, along with details about rates on our Montana mortgage guide.
A financial advisor can help you understand how homeownership fits into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
How Montana Property Taxes Are Calculated
Property taxes in Montana are based on your total tax rate and the taxable value of your home. Taxable value is based on your home’s market value, but the state of Montana calculates it using a somewhat complicated formula.
First, residential property is reappraised by state assessors once every two years. (Reappraisal occurred every six years prior to 2015). The goal of the reappraisal is to match the current market value for each property. If the reappraised value is greater than the previous value, the difference is phased in over the course of the two-year reappraisal cycle. That means there is a slight lag between your current market value and the value on which your taxes are based.
Montana Property Tax Rates
Cities, counties and school districts largely determine tax rates in Montana. The state also collects statewide taxes to support education. Tax rates are expressed in mills or millage rates. A mill equals $1 for every $1,000 of taxable value, while a millage rate is a mill expressed as a decimal. For example, 1 mill is equivalent to a millage rate of 0.001.
For example, the statewide taxes are 95 mills for public schools and another 6 mills for higher education.
While your tax bill will reflect a millage rate, a good way of comparing tax rates from one area to the next is through effective tax rates. This is equal to annual property taxes paid as a percentage of home value. The table below shows average effective property tax rates for every county in Montana, along with their median home values and median annual property tax payments.
| County | Median Home Value | Median Annual Property Tax Payment | Average Effective Property Tax Rate |
|---|---|---|---|
| Beaverhead | $206,900 | $1,535 | 0.74% |
| Big Horn | $150,300 | $1,081 | 0.72% |
| Blaine | $90,600 | $1,532 | 1.69% |
| Broadwater | $238,000 | $1,622 | 0.68% |
| Carbon | $271,500 | $1,834 | 0.68% |
| Carter | $109,400 | $846 | 0.77% |
| Cascade | $184,400 | $2,131 | 1.16% |
| Chouteau | $155,700 | $1,239 | 0.80% |
| Custer | $174,500 | $1,838 | 1.05% |
| Daniels | $164,700 | $1,403 | 0.85% |
| Dawson | $152,700 | $1,872 | 1.23% |
| Deer Lodge | $129,100 | $1,409 | 1.09% |
| Fallon | $165,900 | $1,073 | 0.65% |
| Fergus | $138,700 | $1,378 | 0.99% |
| Flathead | $294,600 | $2,673 | 0.91% |
| Gallatin | $388,000 | $3,465 | 0.89% |
| Garfield | $155,300 | $1,367 | 0.88% |
| Glacier | $106,400 | $984.00 | 0.92% |
| Golden Valley | $107,600 | $750.00 | 0.70% |
| Granite | $252,600 | $1,657 | 0.66% |
| Hill | $153,800 | $1,727 | 1.12% |
| Jefferson | $290,700 | $1,799 | 0.62% |
| Judith Basin | $154,200 | $760 | 0.49% |
| Lake | $278,400 | $1,984 | 0.71% |
| Lewis and Clark | $263,900 | $2,671 | 1.01% |
| Liberty | $101,600 | $1,075 | 1.06% |
| Lincoln | $197,300 | $1,342 | 0.68% |
| McCone | $151,300 | $1,055 | 0.70% |
| Madison | $316,900 | $1,641 | 0.52% |
| Meagher | $170,700 | $1,130 | 0.66% |
| Mineral | $194,800 | $1,392 | 0.71% |
| Missoula | $302,200 | $3,760 | 1.24% |
| Musselshell | $173,000 | $1,247 | 0.72% |
| Park | $287,800 | $1,915 | 0.67% |
| Petroleum | $155,700 | $1,238 | 0.80% |
| Phillips | $141,600 | $1,246 | 0.88% |
| Pondera | $138,900 | $1,400 | 1.01% |
| Powder River | $135,900 | $1,059 | 0.78% |
| Powell | $147,400 | $1,410 | 0.96% |
| Prairie | $101,000 | $1,244 | 1.23% |
| Ravalli | $290,400 | $1,705 | 0.59% |
| Richland | $229,100 | $1,636 | 0.71% |
| Roosevelt | $103,800 | $1,240 | 1.19% |
| Rosebud | $115,300 | $819 | 0.71% |
| Sanders | $251,600 | $1,391 | 0.55% |
| Sheridan | $114,800 | $1,171 | 1.02% |
| Silver Bow | $155,300 | $1,796 | 1.16% |
| Stillwater | $256,600 | $1,655 | 0.64% |
| Sweet Grass | $243,300 | $1,429 | 0.59% |
| Teton | $186,300 | $1,596 | 0.86% |
| Toole | $124,600 | $1,496 | 1.20% |
| Treasure | $161,800 | $990 | 0.61% |
| Valley | $150,500 | $1,426 | 0.95% |
| Wheatland | $117,300 | $896 | 0.76% |
| Wibaux | $107,600 | $777 | 0.72% |
| Yellowstone | $238,700 | $2,492 | 1.04% |
You can also learn more about your mortgage payments with our mortgage loan calculator.
Yellowstone County
Yellowstone County is located in central Montana and contains the city of Billings. Tax rates in Yellowstone County are near the state average, as its average effective tax rate is 1.04%. However, it has a moderately high $238,700 median home value, which causes its $2,492 median annual property tax payment to rank as fifth-highest in the state.
Missoula County
The median annual property tax payment in Missoula County is $3,760, the highest in the state. The city of Missoula has some of the highest taxes of Montana’s largest cities, with total mill levies of about 283 mills. Missoula County's average effective tax rate is 1.24%.
Flathead County
Located in northwest Montana along the western boundary of Glacier National Park, Flathead County has some truly beautiful areas. It also has relatively modest property taxes. The average effective property tax rate in the county is 0.91%, much higher than the state average (0.74%).
Gallatin County
Gallatin County stretches from the tristate border with Idaho and Wyoming up to the city of Bozeman. It contains parts of the Gallatin National Forest and Yellowstone National Park.
The median home value in Gallatin County is $388,00. That makes homes here the most valuable of Montana's 56 total counties.
So while Gallatin County’s property tax rates are slightly lower than the state average, homeowners in the county still pay among the highest property taxes in Montana in dollar terms. The typical Gallatin County resident has a property tax bill of $3,465, placing the county as the second-most expensive behind only Missoula County.
Cascade County
The average effective property tax rate in Cascade County is 1.16%, 5th-highest in the state. At that rate, the annual property taxes on a home worth $171,700 (the median home value in the county) would be $1,991.
Lewis and Clark County
The sixth-most populous county in Montana, Lewis and Clark County has property tax rates higher than the state average. The county’s average effective property tax rate is 1.01%, compared to the 0.74% state average.
Ravalli County
If you’re buying a home in Montana, but don’t like paying property taxes, Ravalli County may be the place for you. The county’s 0.59% average effective property tax rate ranks as the 3rd-lowest in the state.
Silver Bow County
The average effective property tax rate in Silver Bow County is 1.16%, good for fifth-highest in Montana. A homeowner whose home is worth $120,000 would pay $1,392 annually at that rate.
Lake County
Situated at the southern end of Flathead Lake in northwest Montana, Lake County is the ninth-most populous county in Montana. The county’s average effective property tax rate of 0.71% is slightly lower than the 0.74% statewide average.
Lincoln County
The typical homeowner in Lincoln County pays $1,342 annually in property taxes. That's nearly $800 less than the state median of $2,390. The average effective property tax rate here is 0.68%.
I'm quite familiar with property taxes in Montana. Let's break down the information from the article.
Montana's property tax system boasts lower rates compared to the national average, standing at 0.74% versus the U.S. average of 0.99%. The state employs a structured system aiming to ease the burden on homeowners. Taxable values for owner-occupied residential properties are a fraction of their market values. This structure extends to commercial and business properties, which receive substantial exemptions.
The calculation of property taxes in Montana involves the total tax rate and the taxable value of the property. The taxable value is determined using a somewhat intricate formula based on the property's market value. Reappraisals by state assessors occur every two years to align with current market values, with adjustments phased in over the cycle.
Tax rates in Montana are determined by cities, counties, and school districts. These rates are expressed in mills or millage rates, where 1 mill equals $1 for every $1,000 of taxable value. The statewide taxes for public schools amount to 95 mills, while higher education adds another 6 mills.
For easier comparison across regions, effective tax rates are used, representing annual property taxes paid as a percentage of the home value. Different counties in Montana exhibit varying median home values, annual property tax payments, and average effective tax rates:
- Missoula County has the highest median annual property tax payment at $3,760 and an average effective tax rate of 1.24%.
- Ravalli County stands out with an average effective property tax rate of 0.59%, the third-lowest in the state.
- Gallatin County, boasting the highest median home value of $388,000, has slightly lower-than-average property tax rates but still incurs among the highest taxes in the state.
Various counties like Yellowstone, Cascade, Lewis and Clark, and Silver Bow have property tax rates higher than the state average, while others like Lake and Lincoln Counties maintain rates below the state average.
Understanding Montana's property tax system is crucial for prospective homeowners in cities like Billings, Missoula, Helena, or anywhere else in the state. Familiarity with tax rates, appraisal cycles, and local exemptions aids in making informed decisions when investing in Montana real estate.
