How Does the Montana Tax Rebate Work?
This guide explains the mechanics of Montana's tax rebates, detailing the separate eligibility requirements and payment processes for each program.
In 2023, the Montana legislature authorized direct payments to taxpayers through two separate programs to return a portion of the state’s budget surplus. One rebate was based on individual income taxes paid, while the other was connected to residential property taxes.
The Individual Income Tax Rebate
The individual income tax rebate was a one-time payment. To qualify, a taxpayer must have been a Montana resident for the entire 2021 calendar year. They also were required to have filed both a 2020 and a 2021 Montana resident tax return by the 2021 deadline and could not have been claimed as a dependent in 2021.
The rebate amount was the lesser of a taxpayer’s 2021 state tax liability or a maximum based on filing status. For those filing as single, head of household, or married filing separately, the maximum was $1,250. For married couples filing jointly, the maximum was $2,500. For example, a couple with a $3,000 tax liability received the $2,500 maximum.
This rebate was issued automatically by December 31, 2023. The Department of Revenue sent payments via direct deposit to those who used it for their tax refund. All other eligible taxpayers received a paper check by mail.
The Property Tax Rebate
Montana authorized property tax rebates for the 2022 and 2023 tax years based on taxes paid on a principal residence. For each year, the rebate is the lesser of the property taxes paid or $675.
To qualify, an individual must have owned and lived in a Montana residence for at least seven months during the tax year and must have paid the property taxes for that residence.
This program requires an application. The period for the 2022 rebate was August 15, 2023, to October 1, 2023. The application period for the 2023 tax year rebate is August 15, 2024, to October 1, 2024.
To complete the claim, taxpayers need several pieces of information, including:
- The physical address of the property
- The names and Social Security numbers of the taxpayer, spouse, and any dependents
- The property’s 17-digit geocode, found on notices from the Department of Revenue or the state’s Cadastral website
- The total amount of property taxes paid for the corresponding tax year
Taxpayers can file a claim electronically through the Department of Revenue’s TransAction Portal (TAP) or by mail. After an application is approved, payment is issued via direct deposit or a paper check. The status of a rebate can be tracked online through the department’s “Where’s My Rebate?” tool.