July 6th, 2021

Montana Property Taxes

Allocation of Montana Property Taxes by Taxing Jurisdiction Type in FY 2019

Here’s A Quick Primer On Montana Property Taxes* (aka “real estate taxes”) – Montana Residential Taxation – Montana Department of Revenue

All Montana properties are appraised at market value by the Montana Department of Revenue (DOR)

In 2020, Bozeman’s mill rate was $108,490.

In an effort to determine Montana property taxes, let’s calculate a Bozeman property tax, using a Bozeman home that has recently appraised for $200,000:

To this $200,000 amount, there is applied a “homestead exemption” with a rate of 34 percent. That rate is deducted from the appraised value– $200,000 less $68,000 –resulting in a taxable market value of $132,000.

A tax rate (3 percent) is applied, for a taxable value of $3,960. When the mill levy (which varies by city, county, and even school district but averages 538 mills) is applied to the taxable value, approximately half of the taxable value is the amount of property taxes due; in this example, approximately $2,000.

In this example, note that we started at an appraised value of $200,000 and ended with a tax due of $2,000, or 1 percent of market value. That is a general benchmark for property taxation, which means that anything above 1% of market value for an annual tax bill could be considered a high tax rate.


*All information contained herein is derived from sources deemed reliable, however, information is not guaranteed by Taunya Fagan Bozeman real estate, agents, brokers, or ESTATE House.


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