Montana Faces New Alarming Tax Hike: Details for 2025

BUTTE, MT - Montana homeowners are once again bracing for impact as property taxes are set to rise significantly in 2025.

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With the Montana Department of Revenue projecting another sharp increase in tax bills, many residents are questioning how much more they can endure.

These hikes come on the heels of years of escalating tax burdens, driven by skyrocketing property values and systemic shifts in tax structures. As wallets tighten and frustration grows, Montanans are left asking: why does this keep happening, and will it ever stop?

Here are the key details, including what the projected property tax increase will be:

Why Are Montana’s Property Taxes Increasing?

A few key factors are driving the trend:

- Surging Real Estate Market: Montana's undoubtable growing popularity has spiked property values, especially in residential areas.

- Shifting Tax Burden: As residential property values outpace commercial and industrial properties, homeowners bear a larger share of the tax burden.

- Statewide Levies: Taxes like the 95-mill school equalization levy are calculated based on property values, meaning as values increase, so do tax bills.

These systemic issues have created a perfect storm, placing a disproportionate burden on residential property owners.

Will the Increases Ever End?

The prospect of continued tax hikes has left homeowners wondering if there’s any end in sight. While short-term solutions like temporary tax rebates have provided minor relief, they are not sustainable.

Governor Greg Gianforte has proposed a property tax task force to examine the issue and explore reforms, but no concrete changes have been implemented yet. Long-term fixes, such as revising appraisal systems or reevaluating statewide levies, could help stabilize taxes, but they require significant legislative effort.

Without systemic changes, Montanans are likely to face ongoing increases, further straining affordability and homeownership in the state.

A History of Rising Taxes

Montana homeowners are no strangers to rising property taxes.

In 2023, the median tax bill surged by 21%, with increases ranging from $98 to $660 annually for many homeowners. These hikes followed years of steady increases, driven largely by booming property values.

Temporary rebates, such as the $675 property tax refund, have offered some relief, but they don’t address the core issues driving these increases. Over time, the burden has shifted more heavily onto residential property owners, creating growing financial challenges for many.

How Much Will Property Taxes Rise in 2025?

The Montana Department of Revenue projects that the average residential property will be reappraised at 21% higher in the upcoming cycle. This could lead to an average 11% increase in property tax bills next fall, barring intervention by state lawmakers.

For homeowners, this means potentially paying hundreds of dollars more in taxes, adding to the financial strain they already face.

With no clear solutions in sight, Montana residents are bracing for another hit to their wallets.