How to Get Montana Property Tax Relief for Seniors

Montana offers programs to assist senior citizens with their property tax burdens. These initiatives reduce the amount of property tax owed or provide a credit to offset the cost, helping seniors on fixed or limited incomes remain in their homes.

Available Property Tax Relief Programs

Montana provides two programs to assist seniors with property taxes. The first is the Property Tax Assistance Program (PTAP), which reduces the taxable valuation of a qualified individual’s residence, directly lowering the property tax bill. The benefit is a 30%, 50%, or 80% reduction on the first $350,000 of the home’s market value, with the percentage determined by income.

To qualify for PTAP, an applicant must be a homeowner who owns or is under contract to purchase the home and must have resided in it for at least seven months of the year. Eligibility is also tied to income thresholds that are updated periodically. For the 2024 tax year, a single applicant’s income had to be less than $27,621, while the limit for a married couple or head of household was $37,019. Applicants should verify the current year’s income requirements.

A second option is the Elderly Homeowner/Renter Credit, which provides a refundable income tax credit of up to $1,150. This is not a direct reduction of a property tax bill, but a credit claimed on the Montana Individual Income Tax Return. The credit can reduce the income tax an individual owes or result in a direct refund if the credit is larger than the tax liability.

Eligibility for the Elderly Homeowner/Renter Credit extends to both homeowners and renters who are 62 or older by the end of the tax year. Applicants must have lived in Montana for at least nine months and occupied a residence in the state for at least six of those months. A total household income below $45,000 is required. Seniors who do not normally file taxes may need to file a Montana tax return to claim this credit.

Information and Documents Needed to Apply

Applicants will need the full legal names and Social Security numbers for themselves, their spouse, and any dependents. Proof of age, such as a driver’s license or birth certificate, is also required to verify the age requirement for the Elderly Homeowner/Renter Credit. A complete accounting of all household income is also needed.

Sources of income include:

• Social Security benefits
• Pensions and annuities
• Wages
• Interest and dividend income
• Capital gains

Property owners need details from their most recent property tax bill, including the physical address and geocode. Renters must provide the total rent paid during the year and their landlord’s name and address.

The Property Tax Assistance Program application is Form PTAP. The Elderly Homeowner/Renter Credit is claimed using Form 2EC, which is filed with the Montana Individual Income Tax Return. Both forms can be obtained from the Montana Department of Revenue’s website.

The Application and Submission Process

The application deadline for both the Property Tax Assistance Program and the Elderly Homeowner/Renter Credit is April 15th each year. Applicants should allow ample time to gather documents and complete the necessary forms.

The completed Form PTAP application must be mailed to the Montana Department of Revenue. For the Elderly Homeowner/Renter Credit, the completed Form 2EC must be included with the Montana Individual Income Tax Return, which can be mailed or filed electronically.

For an approved PTAP application, the reduction in taxable value is automatically applied to the property, and the homeowner will see this relief on their fall property tax bill. For the Elderly Homeowner/Renter Credit, the amount is applied against any income tax owed. If the credit exceeds the tax liability, the state will issue a refund.