February 2nd, 2023

Montana Property Taxes

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

Quick Primer On Montana Property Taxes* (aka “real estate taxes”) – Montana Residential Taxation

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

Bozeman’s Mill Value is $143,099 (2022)

Mock calculation to determine property taxes in Bozeman, Montana.

Let’s calculate a Bozeman property tax using a home that has recently appraised for $200,000 (those days are gone):

To this $200,000 amount, there is applied a “homestead exemption with a rate of 34%.

Thus, $200,000 x .34 = $68,000, which is deducted, i.e., exempted, from the appraised value of $200,000.

So, $200,000 – $68,000 = $132,000, resulting in a taxable market value of $132,000.

Next, a tax rate (3%) is applied: $132,000 x .03 = $3960, for a taxable value of $3,960.

But, when the mill levy* is applied to the taxable value, approximately half of the taxable value becomes 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% of market value.

This is a general benchmark for property taxation, meaning anything above 1% of market value for an annual tax bill could be considered a high tax rate.

*Mill Levy varies by city, county, and even school district but averages 538 mills.


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


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