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All property is taxable in Montana unless it is specifically exempted from taxation1. Personal property that is expensed or depreciated out for income tax purposes remains taxable for property tax purposes.
Montana has a graduated individual income tax, with rates ranging from 1.00 percent to 6.75 percent. Montana has a 6.75 percent corporate income tax rate. Montana does not have a state sales tax and does not levy local sales taxes. Montanas tax system ranks 5th overall on our 2023 State Business Tax Climate Index.
The Property Tax Rebate is a rebate of up to $675 per year of property taxes paid on a principal residence. There is a rebate available for property taxes paid for Tax Year 2022 and another rebate available for property taxes paid for Tax Year 2023.
Montana has relatively low taxes on residential real estate. The states 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.
A propertys taxable value is the market value multiplied by the tax (or assessment) rate. For residential property, the tax rate is 1.35% and for commercial property, the tax rate is 1.89%.
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WalletHubs data reveals that residents of the highest property tax states pay four-and-a-half times more in taxes than the lowest property tax states. New Jersey homeowners shoulder the highest property tax burden, while Hawaii residents enjoy the lowest. New Jerseys median tax is $8,797 on the average home value.

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