Key Takeaways
- Second homes pay a flat 1.9% rate: From tax year 2026, a Montana house that is not an enrolled primary residence or long-term rental is taxed at 1.9% of market value (Mont. Code Ann. § 15-6-134).
- Enrolled houses pay tiered rates: Primary residences and long-term rentals start at 0.76% on the first $378,000 and reach 1.9% only above $1,512,000.
- The rate sets taxable value, and mills set the bill: On the same Department value, a second home can carry roughly twice the taxable value of an enrolled Whitefish house.
- Converting to a long-term rental has a deadline: Enrollment for tax year 2027 closes March 1, 2027, and tenants must live there on 28-day-plus terms for at least 7 months.
- Whitefish adds its own limits: Short-term rentals are allowed only in five zoning districts, and a 2025 Montana Supreme Court case held that covenants can bar them.
- Four paths: Keep and pay, convert, list with an agent, or sell as-is for cash. A well-kept resort house often does best listed.
The Montana second home property tax for 2026 comes down to one number. A house that is not enrolled as a primary residence or long-term rental is taxed at a flat 1.9% of its market value (Montana Department of Revenue, 2026). An enrolled primary residence pays 0.76% on its first $378,000. For a Whitefish owner who uses the house part of the year or rents it by the night, that gap is now a line item.
This guide covers the Department's 2026 rate table, the math on a Whitefish house, who qualifies for the lower rate, the city's short-term rental rules, and your four options.
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Let's chatWhat changed in Montana property tax for 2026?
Starting with tax year 2026, Montana splits residential houses into two groups: enrolled primary residences and long-term rentals get tiered lower rates, and everything else pays a flat 1.9%. The 2025 Legislature built this through House Bill 231 and Senate Bill 542 (MSU AgEconMT, November 2025). The rates now sit in the class four statute (Mont. Code Ann. § 15-6-134).
The flat group is spelled out by the Department. Its 2026 guidance lists second homes, short-term rentals such as cabins rented by the night, and vacant residential lots (Montana Department of Revenue, 2026 Property Tax Information).
2025 was a bridge year. Every residence paid the same tiered rates that year: 0.76% up to $400,000, 1.10% up to $1.5 million, and 2.20% above that. Primary residences also got a rebate of up to $400 (Montana Department of Revenue, Compare Rates).
The 2026 Montana second home property tax rate table
An enrolled house is taxed in slices, while a second home or short-term rental pays 1.9% on every dollar of market value. The table below uses the Department's 2026 brackets, built on a statewide median residential value of $378,000.
| Slice of market value (2026) | Enrolled primary residence or long-term rental | Second home, short-term rental, or not enrolled |
|---|---|---|
| First $378,000 (up to the statewide median) | 0.76% | 1.90% |
| $378,001 to $756,000 (median to 2 times median) | 0.90% | 1.90% |
| $756,001 to $1,511,999 (2 to 4 times median) | 1.10% | 1.90% |
| $1,512,000 and above (4 times median or more) | 1.90% | 1.90% |
Source: Montana Department of Revenue, Homesteads and Long-term Rentals, read September 2026, and Mont. Code Ann. § 15-6-134(3).
What "four times the statewide median" means
Four times the Department's $378,000 median is $1,512,000. Above that line, even an enrolled primary residence pays the same 1.9% a second home pays. The statute has the Department recalculate the median every two years as part of reappraisal, so the dollar brackets can move.
How much more does a Whitefish second home carry?
At the same Department value, a Whitefish second home can carry roughly twice the taxable value of an enrolled primary residence. The rate does not produce the bill directly. MSU's AgEconMT explains the formula: market value times the tax rate gives taxable value, and taxable value times mills divided by 1,000 gives the tax owed (MSU AgEconMT, November 2025).
The table below runs that formula on three illustrative values. Your own figure is the market value on your Department assessment notice, not a Zillow estimate or sale price.
| Illustrative market value | Taxable value if enrolled | Taxable value as a second home | Cost of each mill (enrolled vs. second home) |
|---|---|---|---|
| $900,000 | $7,859 | $17,100 | $7.86 vs. $17.10 |
| $1,200,000 | $11,159 | $22,800 | $11.16 vs. $22.80 |
| $2,000,000 | $23,863 | $38,000 | $23.86 vs. $38.00 |
To estimate your own bill, find the total mills on your last Flathead County tax statement. Multiply that number by the "cost of each mill" figure for your value. Mill levies change yearly with local budgets, so treat the result as an estimate.
The Department also projected averages before the change took effect. It expected non-homestead residential bills, meaning second homes and short-term rentals, to rise a cumulative 68% on average by 2026. Under the old code, the projection was 14% (Montana Free Press, May 2025). For Flathead County long-term rentals, the Department projected an average cut of about 27%. Actual bills vary by district and house.
Who qualifies for the homestead or long-term rental rate?
A house qualifies for the lower rates only if it is enrolled and used as a primary residence or a long-term rental.
The homestead rate
The Department sets four conditions (Montana Department of Revenue, Homestead FAQs):
- The house is your principal residence for at least 7 months a year. The months do not need to be consecutive.
- You own it as an individual or through a grantor revocable trust. LLCs, partnerships, corporations, and irrevocable trusts do not qualify.
- Your property taxes are current.
- It is the only residence you claim the rate on.
A resident who lives in Whitefish April through December and rents the house out January to March can still qualify.
The long-term rental rate
A rental qualifies when it is leased for terms of at least 28 days, for at least 7 months of the year, to tenants who live there as their residence. Taxes must be current. Unlike the homestead rate, an LLC or irrevocable trust can hold a qualifying long-term rental. The application asks for each month's rent and the prior year's income and expenses (Montana Department of Revenue, Long-Term Rental FAQs).
Deadlines that already passed, and the next one
Owners who received the 2025 $400 rebate and still live in the same house were enrolled automatically for 2026. Everyone else had to apply from December 1, 2025 to March 1, 2026. The Department later extended that deadline, and 2026 enrollment closed March 20, 2026. The window for tax year 2027 opened May 4, 2026 and closes March 1, 2027.
The Department warns that a lease to a family member at nominal rent carries real risk. If the arrangement is disregarded, the house is reclassified and back taxes are owed. A false application can add a penalty of three times the extra tax, plus interest.
Whitefish short-term rental rules on top of the tax
A Whitefish short-term rental needs the right zone, a city permit, and clear covenants, and the 1.9% rate applies on top of all three. The city defines a short-term rental as a stay of less than 30 days.
Zoning, permit, fire inspection, and resort tax
Inside city limits, short-term rentals are allowed only in the WB-3, WRR-1, WRR-2, WRB-1, and WRB-2 zoning districts (City of Whitefish, Short-Term Rental). Standard residential zones are outside that list. An operator needs:
- A short-term rental permit and business registration, with an application fee of $400 per year.
- An annual fire inspection.
- Monthly reporting and payment of the city resort tax.
Covenants can bar a rental even where zoning allows it
In Brandt v. R&R Mountain Escapes, LLC, 2025 MT 155, the Montana Supreme Court affirmed a ruling that subdivision covenants barred short-term rentals of a house near Whitefish (Montana Supreme Court, DA 23-0716, decided July 22, 2025). The covenants limited the lots to "country residential" use and banned "any other commercial purpose whatsoever." The owner held a Flathead County conditional use permit, and the covenants still controlled.
The decision turned on that subdivision's own wording, so it does not ban rentals statewide. It does mean a Whitefish owner should read the recorded covenants before counting on rental income.
The Whitefish market and insurance in 2026
Whitefish values have held steady in 2026, which makes the tax change a carrying-cost question.
Zillow puts the typical Whitefish value at $871,592, up 1.4% over the year (Zillow ZHVI, August 2026). Flathead County overall sits at $650,765, up 1.8% (Zillow ZHVI, August 2026).
Redfin reports a median sale price of $1,201,480 in ZIP code 59937 for the three months ending August 2026, up 20.8% from a year earlier (Redfin, August 2026). Houses there sold after a median of 84 days, versus 87 a year before (Redfin, August 2026). Redfin's median reflects what sold, so high-end lake sales pull it up.
Wildfire insurance is the second carrying cost
Montana homeowner insurance premiums rose roughly 40% since 2019, and about 63% of Montana houses sit in the wildland-urban interface (Flathead Beacon, June 2026). The same report calls the Flathead Valley the state's highest-rated area for wildfire risk. House Bill 136 (2025) allows premium discounts for verified mitigation. House Bill 533 (2025) requires an insurer that uses a wildfire risk score to give the policyholder that score.
If insurance is the harder problem, our guide to selling a Missoula house when wildfire insurance is the problem covers it in depth.
Keep, convert, list, or sell: comparing your options
A Whitefish second-home owner has four realistic paths: keep the house and pay the higher rate, convert it to a long-term rental, list it with an agent, or sell it as-is for cash.
| Option | Carrying cost | Time | Certainty |
|---|---|---|---|
| Keep and pay | Highest: 1.9% rate, insurance, upkeep, and permit costs if rented nightly | Ongoing, year after year | You keep the house and your personal use; bills move with mills |
| Convert to a long-term rental | Lower tiered rate once enrolled; landlord costs and wear replace nightly turnover | Earliest lower rate is tax year 2027 (enroll by March 1, 2027) | Depends on finding tenants for 7-plus months; you lose most personal use |
| List with an agent | You carry taxes, insurance, and prep costs until closing, plus commission | Median 84 days on market in 59937 (Redfin, August 2026), plus closing | Often the strongest price for a well-kept house; financing and inspection can fall through |
| Sell as-is for cash | Stops at closing; no repairs, showings, or commissions | Can close in as few as 7 days, on the date you pick | No lender or appraisal contingency; the price is often below a retail listing |
When keeping or converting makes sense
If you use the house often and the higher bill fits your budget, keeping it is reasonable. Converting suits a house near town that year-round tenants want. A 30-day minimum lease clears both the city's short-term rental definition and the state's 28-day test.
When listing is likely the better move
A well-kept lake or resort house often nets more through a local agent, if you can carry it through a showing season. If that describes your house, list it, and Propcash says so on the first call.
When a cash sale fits
A cash sale tends to fit a house that needs work or has an aging dock, well, or septic. It also suits an owner who lives far away or wants the carrying costs to stop on a known date. Propcash is a direct cash homebuyer that buys houses as-is and makes one transparent, data-backed offer with the reasoning shown. You can get a cash offer on your Whitefish house and compare it against the other three paths. If a cash sale is not your best move, we will tell you and point you to a local agent. We may receive compensation from agents we refer.
Selling a Whitefish house from out of state
An out-of-state owner can usually sell a Whitefish house without flying in, because Montana closings run through title and escrow companies. Documents can often be signed by mail in front of a notary where you live, and proceeds are wired.
If taxes on the house have fallen behind, our guide to Montana property tax liens and the redemption window explains the county process. Our Montana seller disclosure requirements guide covers the 2023 law. For local detail on selling in town, see our Whitefish cash buyer page or the statewide Montana cash buyer page. Propcash charges sellers no fees or commissions, and you pick the closing date.
Why wait? Sell your house “as is” for cash today
Tell us about your house. We'll make you a cash offer based on local market data.
Let's chatFrequently Asked Questions
What is the Montana second home property tax rate for 2026?
Montana taxes second homes, short-term rentals, and other residences that are not enrolled as a primary residence or long-term rental at a flat 1.9% of market value for tax year 2026. That rate produces taxable value, and local mill levies then set the actual bill. Enrolled primary residences and long-term rentals pay tiered rates starting at 0.76% on the first $378,000.
Does a Whitefish short-term rental qualify for the homestead rate?
A house used only as a Whitefish short-term rental does not qualify for the homestead rate or the long-term rental rate. It can still get the homestead rate if the owner lives there as a principal residence for at least 7 months a year. Renting it out for the remaining months does not disqualify it.
If I convert my Whitefish house to a long-term rental, when does the lower rate start?
The earliest a newly converted Whitefish rental can get the lower rate is tax year 2027, and only if it is enrolled by March 1, 2027. The house must then be rented to residential tenants on terms of 28 days or more for at least 7 months of the year. The application asks for monthly rent and the prior year's income and expenses.
What does four times the statewide median mean for a Whitefish primary residence?
The Department's 2026 statewide median residential value is $378,000, so four times the median is $1,512,000. Any market value above that line is taxed at 1.9%, even on an enrolled primary residence. The value below the line keeps the lower tiered rates of 0.76%, 0.90%, and 1.10%.
Can subdivision covenants stop a Whitefish short-term rental even where zoning allows it?
Subdivision covenants can stop a Whitefish short-term rental even where zoning allows it, depending on their wording. In Brandt v. R&R Mountain Escapes, decided July 22, 2025, the Montana Supreme Court held that covenants limiting lots near Whitefish to residential use and banning commercial purposes barred short-term rentals. The owner held a county permit, and the covenants still controlled.
Can I sell a Whitefish second home without traveling to Montana?
You can often sell a Whitefish second home without traveling to Montana. Montana closings run through title and escrow companies, and documents can usually be signed by mail before a notary where you live. Proceeds are wired to you, and a direct cash sale skips showings.
Data Sources: Montana Department of Revenue, Mont. Code Ann. § 15-6-134, MSU AgEconMT, Montana Free Press, City of Whitefish, Montana Supreme Court, Zillow Research, Redfin, Flathead Beacon. Propcash is a direct cash homebuyer, not a law firm or tax advisor. Confirm your classification with the Department of Revenue and ask a Montana tax professional about your situation.