Property tax relief for seniors in Montana

In short: If you are 62 or older and your household income is under $45,000, Montana's Elderly Homeowner/Renter Credit can pay you up to $1,150 a year, whether you own or rent, and even if you do not have to file a tax return. Homeowners with limited income of any age can also cut the tax rate on their home through the Property Tax Assistance Program (PTAP). Both are run by the Montana Department of Revenue, 406-444-6900.

Elderly Homeowner/Renter Credit

This is a refundable credit on your Montana income tax. "Refundable" means you get the money even if you owe no tax.

Who qualifies

  • You are 62 or older by December 31 of the tax year.
  • You lived in Montana for at least nine months of the year.
  • You rented, owned or leased a Montana home for at least six months of the year.
  • Your gross household income is less than $45,000.

What counts as income

Montana counts all income of everyone in the household. It starts with federal adjusted gross income (without losses) and adds income that is not taxed, including:

  • Social Security, except Social Security paid directly to a nursing home.
  • Pensions and annuities.
  • Alimony and support money.
  • Cash public assistance.
  • Interest on government bonds.

For figuring the credit, $12,600 is subtracted from this gross household income.

What counts as tax or rent

  • Owners: the property tax billed on your home, including special assessments and fees on the bill, for up to one acre of land. Penalties and interest do not count.
  • Renters: 15% of the rent you actually paid counts as the property tax you paid through rent.
  • Nursing home or care facility residents: count only the part you pay for rent. Leave out charges for meals, housekeeping, transportation, nursing, assisted living or memory care. Ask the facility for a statement that separates rent. If you cannot get one, use the Long-Term Care Facility Rent Calculation Worksheet in the Form 2 instructions.
  • Not eligible: rent for an apartment or facility that does not pay property tax, unless you paid it to a county or city housing authority. Ask your landlord, or look up the building on the state's Montana Cadastral site. If the property type is "EP - Exempt Property," the rent does not qualify.

How to claim it

  1. File free online in the Department of Revenue's TransAction Portal at tap.dor.mt.gov, or
  2. File on paper with the Montana Individual Income Tax Return (Form 2) and Schedule 2EC.
  3. Deadline: Claim it by the date your income tax return is due. If you do not have to file a return, you have until April 15 of the next year. Late claims can be made up to three years after the deadline.

Property Tax Assistance Program (PTAP)

PTAP lowers the tax rate on your home if your income is limited. There is no age limit, but many older homeowners qualify.

Who qualifies

  • You own the home, or are buying it on a contract for deed. Mobile and manufactured homes count.
  • It is your main home for at least seven months of the year.
  • Your income is within the limits. Your spouse's income counts even if your spouse is not on the deed.
  • For farm and timber land, only the one-acre home site qualifies.

Income limits and rate cuts (tax year 2027, based on 2025 federal adjusted gross income)

Single Married or head of household Cut in tax rate
Up to $14,732 Up to $19,849 80%
Up to $20,142 Up to $29,993 50%
Up to $29,943 Up to $40,131 30%

How to apply

  1. Fill out the PTAP application from the Department of Revenue.
  2. Income papers: If you filed a 2025 Montana income tax return, you do not need to send income papers. If your only income is not taxed, such as Social Security or veterans benefits, include your Social Security statement or other proof. New Montana residents include a copy of their 2025 federal return.
  3. Sign it. The owner, the spouse, and anyone helping fill it out must sign.
  4. Send it to your local Department of Revenue field office by April 15, postmarked or hand delivered. If you miss the deadline, apply anyway so you are checked for the next year.

You only report income once. After that, the Department checks your eligibility each year and tells you if you still qualify, as long as you own and live in the home.

Homestead reduced rate

Montana taxes homes at a lower rate when the owner lives there as a main home at least seven months a year. If your home got the 2025 property tax rebate and nothing has changed, it qualifies for 2026 on its own. Otherwise apply at homestead.mt.gov or call 406-444-6900.

Things people miss

  • Renters can get the Elderly credit. You do not need to own a home.
  • No tax return needed. You can still claim the credit if you do not have to file.
  • You can go back three years. If you qualified before but never claimed, ask about late claims.
  • PTAP and the Elderly credit are separate. A homeowner 62 or older may qualify for both.
  • Assisted living residents: only the rent part of your bill counts, so ask for a split statement.

Free help

  • Montana Department of Revenue: 406-444-6900 (Montana Relay 711). Field office addresses are at revenue.mt.gov.
  • Area Agencies on Aging: 1-800-551-3191, for help finding other services for older adults.

For other programs, see all benefits in Montana.

Phone numbers: Free help lines for Montana agencies

Check what you may qualify for

Sources

Page last reviewed: 2026-10-18