Behind on Property Taxes in Montana? Tax Liens, Assignments, and the 3-Year Redemption Window (2026)

A Montana property tax lien is how a county collects unpaid property taxes, and it does not take your house on the day it attaches. The county treasurer attaches a lien each August, and you keep a three-year right to pay it off. Owners end up here for ordinary reasons: a job loss, a death in the family, or a bill mailed to an old address.

This guide covers the timeline, lien assignments, what redemption costs, the 2026 homestead rate, and how a sale can pay the lien at closing.

How does a Montana property tax lien work?

When Montana property taxes go unpaid, the county treasurer attaches a tax lien to the land no later than the first working day in August (Mont. Code Ann. § 15-17-125). The lien covers the delinquent taxes plus penalties, interest, and costs (§ 15-17-121). At first, the county itself holds it.

Before the lien attaches, the treasurer must publish or post a notice by the last Monday in June (§ 15-17-122). The treasurer must also mail you a notice at least two weeks before attachment. That letter says the lien may be assigned to a third party.

After attachment, the treasurer files a tax lien certificate with the county clerk and recorder and mails you a copy.

Two due dates each year

Montana property taxes are paid in two halves. The first half is due by 5 p.m. on November 30, or 30 days after the tax notice is postmarked if that is later. The second half is due by 5 p.m. on May 31 (§ 15-16-102).

A missed half becomes delinquent right away. The statute adds a 2% penalty and interest of 5/6 of 1% a month until the taxes are paid. Missoula County describes that as a 10% annualized rate (Missoula County Clerk & Treasurer, September 2026).

The Montana tax lien timeline, from missed payment to tax deed

The Montana tax lien timeline runs about four years from a missed payment to a possible tax deed. The table follows an illustrative unpaid 2025 tax bill; your notices state your actual dates.

Each later unpaid year starts its own lien on the same schedule. An assignee may pay those later taxes each June 1 to July 30; if it does not, anyone can buy them as a separate assignment (Yellowstone County Treasurer, September 2026).

What is a tax lien assignment in Montana?

A tax lien assignment is the county's transfer of its lien to a private person who pays the delinquent taxes, penalties, interest, and costs (§ 15-17-323). The assignee gets the right to be paid when you redeem, or to seek a tax deed if you never do. It does not give the assignee title or the right to move in.

The notice of pending assignment

Before buying an assignment, the would-be assignee must send you a notice by certified mail. It must be mailed at least two weeks before the payment, no earlier than August 15, and no more than 60 days before the purchase (§ 15-17-323(5)). The statutory form reads, in capitals, "THIS COULD RESULT IN THE LOSS OF YOUR PROPERTY LISTED BELOW."

That letter often comes from a stranger, and it can feel alarming. It is a warning the statute requires. If you pay the treasurer before the date it names, there is no lien left to assign.

How counties hand out assignments

When several people want the same lien, each treasurer sets a written policy (§ 15-17-323(1)(b)). Yellowstone County, which includes Billings, runs a randomized lottery on its first assignment day, August 31 in 2026, and charges $50 for each assignment (Yellowstone County Treasurer, September 2026).

How long is the Montana tax lien redemption period?

The Montana tax lien redemption period runs until the first working day in August, three years after the lien attached (§ 15-18-111). A lien that attached on August 3, 2026, can be redeemed through August 1, 2029. You keep living in the house during that time.

The two-year exception

A two-year period applies to a subdivided lot with delinquent special improvement district assessments and no habitable dwelling or commercial building on it. A house you live in does not fall under it.

Who can redeem

Section 15-18-111 lets these people redeem:

• The owner
• The occupant of the house
• The holder of an unrecorded or improperly recorded interest
• Any interested party with a properly recorded interest, such as a mortgage lender, a contract-for-deed seller, or a lienholder

Heirs often hold an unrecorded interest while an estate is still open. Our guide to selling an inherited house in Montana covers how heirs get the authority to sign.

Where the money goes

You pay the county treasurer, not the assignee. The treasurer files a certificate of redemption with the county clerk and recorder (§ 15-18-113). Within 30 days, the treasurer pays the assignee what it paid plus interest at the § 15-16-102 rate (§ 15-18-114).

What redemption costs on a $3,000 tax bill

Redeeming a Montana property tax lien costs the delinquent taxes, a 2% penalty, interest of 5/6 of 1% a month, and the county's costs (§§ 15-16-102, 15-17-121). Interest and costs keep accruing until the day you pay. The treasurer calculates the total as of that date (§ 15-18-212(6)).

The table uses an illustrative $3,000 bill, treated as delinquent on one date to keep the math simple. The $75 cost is Missoula County's tax lien certificate fee; other counties differ.

The real number can run higher. Later years' unpaid taxes are added with their own penalty and interest (§ 15-18-112(2)). In the final year, an assignee's notice expenses, such as certified mail and a title search, count as costs (§ 15-17-121(3)).

What if the county still holds the lien?

If nobody buys an assignment, the county keeps the lien, and you have the same three-year window (§ 15-17-125). The lien can still be assigned later after new notice to you. While the county holds it, two rules help.

• You can pay in pieces. The treasurer must accept a payment covering one-half of a delinquent tax year, with penalty and interest, if current taxes are paid (§ 15-16-102(5)). This applies only while the county owns that year's lien (§ 15-18-112(4)).
• A tax deed to the county is not automatic. The treasurer can issue one only if the county commissioners direct it by resolution (§ 15-18-211(3)).

What happens if the lien is not redeemed?

If the three years run out, the assignee can get a tax deed, though an owner-occupied house goes to a public sale first.

The warnings before the deadline

Between May 1 and May 30 of the final year, the assignee must mail a notice that a tax deed may be issued (§ 15-18-212(1)). It goes by certified mail to the occupant and every party of record. If the assignee skips this step, the treasurer cancels the lien and assignment certificates (§ 15-18-212(3)).

For an owner-occupied house, the sheriff or treasurer must also try to hand you a copy in person and explain the consequences (§ 15-18-212(8)). Yellowstone County says its sheriff's office makes these visits in July (Yellowstone County Treasurer, September 2026).

Owner-occupied houses: a public sale with surplus to you

When the owner of record lives in the house, the assignee must apply for a tax deed after the period ends (§ 15-18-219). The treasurer then holds a public sale within 60 days (§ 15-18-220). The minimum price is the redemption amount and fees, plus half the most recent assessed value or half an independent appraisal.

That half-value amount, plus anything paid above the minimum, is surplus. The treasurer must pay it to the legal titleholder within 30 days (§ 15-18-221). If nobody pays the minimum, the treasurer cancels the assignment.

Vacant houses, rentals, and second homes: a tax deed

A house the owner does not live in goes straight to a tax deed for the assignee if the lien is not redeemed (§ 15-18-211). The deed conveys title free of most liens, except items such as easements and covenants (§ 15-18-214). The statute provides no surplus payment on this path.

Narrow grounds to challenge a tax deed

Undoing a Montana tax deed is hard. In a quiet title case, the court can order the owner to first deposit the taxes, interest, penalties, and costs, unless the owner is indigent (§ 15-18-411). An owner who misses that deposit waives defects in the tax proceedings (§ 15-18-412).

The proceedings are void if the taxes were not delinquent or had been paid. A deed holder can also publish a notice of claim, which gives the owner 30 days to pay or sue (§ 15-18-413).

Back taxes and the 2026 homestead rate

Being behind on property taxes can also cost you Montana's lower homestead rate. The Department of Revenue says an owner must be current on all property tax payments to qualify (Montana Department of Revenue, September 2026).

Enrollment for the 2026 tax year closed March 20, 2026. A house that missed it pays the standard Class 4 residential rate for the rest of the year, which the Department describes as a flat 1.9% for 2026. Enrollment for 2027 closes March 1, 2027.

A second home or short-term rental does not qualify for the homestead rate at all. Our article on Montana's 2026 property tax change for Whitefish second-home owners covers that side.

Selling a Montana house with a property tax lien

You can sell a Montana house with a property tax lien at any time before a tax deed issues, and the lien is paid from the sale proceeds at closing.

How the title company handles it

Montana closings typically run through a title and escrow company, with no attorney required. The title search shows the lien and any assignment. The title company then typically:

• Orders a redemption figure from the county treasurer, good through the closing date
• Pays that amount to the treasurer from your proceeds
• Pays off any mortgage and prorates the current year's taxes

The closing follows the treasurer's redemption figure. Once the certificate of redemption is filed, the lien no longer clouds the deed to your buyer.

What the numbers look like

Back taxes are often a small share of what a Montana house is worth. In Billings, Redfin reports a median sale price of $389,642 over the three months ending August 2026, up 0.5% year over year (Redfin, August 2026). Separately, the Zillow Home Value Index for Billings was $400,819 in August 2026 (Zillow ZHVI, August 2026).

At an owner-occupied public sale, the surplus starts at half the assessed value. Selling before the deadline can keep more of the equity with you.

Where Propcash fits

Propcash is a direct cash homebuyer based in Nashville. We buy houses as-is, and our one cash offer shows the treasurer's redemption figure in the math. Sellers pay no fees or commissions, and you pick the closing date.

You can get a cash offer on a Montana house with a tax lien, and the offer stands while you check your figure with the treasurer. If redeeming and keeping the house makes more sense, we will say so. See our Montana page on selling a house for cash for more.

If a mortgage lender has also scheduled a trustee's sale, our guide on how to stop foreclosure in Montana covers that separate, shorter timeline.

Frequently Asked Questions

How long do you have to redeem a Montana property tax lien?

Montana gives you until the first working day in August, three years after the tax lien attached, under Mont. Code Ann. § 15-18-111. For a lien that attached on August 3, 2026, that deadline is August 1, 2029. A two-year period applies only to vacant subdivided lots with delinquent special improvement district assessments.

Does Montana sell your house at a tax sale?

Montana does not sell the house when property taxes go unpaid. The county attaches a tax lien and may sell an assignment of that lien, while the owner keeps title and possession for the three-year redemption period. A tax deed or public sale can happen only after that period ends.

What is a notice of pending assignment in Montana?

A notice of pending assignment is a certified letter that a would-be assignee must mail to the owner before buying the county's tax lien, under Mont. Code Ann. § 15-17-323. It must go out at least two weeks before the purchase and no earlier than August 15. Paying the county treasurer before the date in the notice leaves no lien to assign.

How much interest does Montana charge on delinquent property taxes?

Montana adds a 2% penalty to delinquent property taxes and charges interest of 5/6 of 1% a month until they are paid, under Mont. Code Ann. § 15-16-102. That works out to 10% a year. On an illustrative $3,000 bill, three years of interest adds about $900.

Can you sell a Montana house with a tax lien on it?

An owner can sell a Montana house with a tax lien at any point before a tax deed issues. The title company pays the county treasurer's redemption figure from the sale proceeds at closing. The treasurer then files a certificate of redemption, which clears the lien from the title.

What happens to your equity if a Montana tax lien is not redeemed?

For an owner-occupied Montana house, the treasurer holds a public sale, and half the assessed value plus any amount above the minimum price goes to the titleholder as surplus. For a vacant house, a rental, or a second home, the assignee receives a tax deed, and the statute provides no surplus payment.

Data Sources: Mont. Code Ann. Title 15, chapters 16 to 18 (read September 2026); Yellowstone and Missoula county treasurers; Montana Department of Revenue; Redfin; Zillow. Propcash is a direct cash homebuyer, not a law firm. Confirm exact figures with your county treasurer and consult a Montana attorney about your situation.