April 10th, 2023

Montana Property Taxes

Photo Allocation of Montana Property Taxes by Taxing Jurisdiction Type in FY 2022.

Quick Primer On Montana Property Taxes* – Bozeman Property Taxation

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

Bozeman’s Mill Value is $152,627 in 2023 – Bozeman’s Mill Levy* is 206.91 in 2023.

Mock calculation to determine property taxes in Bozeman, Montana.

Let’s calculate a property tax using a Bozeman 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 (eg., 3%) is applied: $132,000 x .03 = $3960, for a taxable value of $3,960.

But, when the mill levy–specific to each property*–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.

*Calculating your Bozeman tax: “the mills on your classification and appraisal notice are specific to your property’s location. There may be additional taxes or fees on your bill for approved special districts or improvements (e.g., Rural Improvement, lighting, water and sewer, etc.) A total tax bill calculation includes all taxing jurisdictions and amounts assessed by each district.”

*Mill Levy varies by city, county, and even school district; Bozeman’s mill levy is 206.91  in 2023.

Additional Montana State Resources:

*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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