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A packed room in Great Falls, MT, erupted in frustration. The mayor and officials from the Department of Revenue stood at the front as more than 150 homeowners demanded answers: How could their estimated property tax bills be so high?
It was 2023, and residents across the state had just received reappraisal notices reflecting skyrocketing home prices. The wave of backlash that followed is exactly what state and local leaders are hoping to avoid this week, as the first new assessments since then land in mailboxes across Montana.
“I just encourage the commissioners to start listening to the people,” Great Falls resident Beth Cummings told KRTV in 2023, “because this fire is building a lot larger than I think we’re going to be able to contain.”
And they did listen. The 2025 valuation notices are arriving alongside the nation’s biggest property tax reforms passed this year, aimed at fixing what many called a broken system. But with property values expected to spike, the real test begins: Will the changes in tax code be enough to offset rising home values?
What is (and isn’t) in the envelope
Currently making their way through U.S. the postal system are thousands of reappraisal notices from the Montana Department of Revenue.
Each envelope includes two key numbers. The first is the home’s assessed market value, representing what the department estimates a home could have sold for as of Jan. 1, 2024. The second is the taxable value, a smaller figure used to calculate property tax bills that incorporates exemptions and other deductions.
Assessed market values are expected to jump 21% this year, according to the Montana Department of Revenue. But unlike 2023, that spike might not translate to a higher tax bill.
Previously, the taxable value of most residential homes was 1.35% of their assessed market value. Under the new system, that formula is being replaced with a tiered rate structure that generally lowers the taxable value for primary residences (starting this year) and shifts more of the burden to second homes and non-owner-occupied properties (starting in 2026).
While the reforms represent one of the most significant overhauls of property tax policy in the nation, the biggest change this week might be what’s not included in the envelope. That’s because this year’s reappraisals won’t include an estimated tax bill.
The omission is a deliberate departure from 2023, when projections included with the reappraisal notices sparked outrage and confusion across the state. The Department of Revenue says it has learned its lesson. And this year, it’s putting a premium on clarity.
“Ultimately, the inclusion of the estimated taxes led to more confusion and provided minimal benefit,” department spokesperson Jason Slead said in a statement to the Montana Free Press.
The purpose of the notices, he said, is to give homeowners a clear opportunity to review and appeal their valuations before those values are locked in. By limiting the notices to information homeowners can actually dispute, the state hopes to keep the focus on what residents can control.
Why home values and emotions are so high
Montana homeowners have reason to be wary of what’s in their mailboxes. The last time the state sent out reappraisal notices, median home valuations rose by 40% and property tax bills jumped 21%.
In a state where housing costs have outpaced local wages for years, the 2023 reappraisal cycle set the stage for the significant property tax reforms the Legislature passed this year. But whether those changes offer real relief remains to be seen.
The big unknown: What will your final tax bill be?
Montana’s property tax system is unusual. Unlike most states, where property valuations are handled by county assessors, Montana calculates home values at the state level. But the actual tax rates—the mill levies that determine how much homeowners owe—are set locally by counties, cities, school districts, and other taxing jurisdictions.
That division creates a built-in layer of uncertainty. A higher state-assessed value doesn’t automatically mean a higher tax bill, because local governments might adjust their rates to account for broad increases in property values. In theory, if everyone’s home value rises, local tax rates could be lowered to avoid overcharging residents.
But for individual homeowners, this nuance often gets lost. While the Department of Revenue has released county-level modeling to illustrate broad trends under the new system, no precise tax estimates are available for individual households at this stage.
That means homeowners will need to wait until final tax bills are issued in the fall to fully understand how this year’s valuation and the state’s sweeping reforms will affect their bottom line.
The next 30 days
Right now, state officials are encouraging homeowners to focus on the appeals process.
Montana homeowners have 30 days from the postmark date on their reappraisal notice to file an appeal. After that window closes, the assessed value listed in the notice will be locked in and used to calculate their property tax bill.
“If property owners wait until property tax bills are sent in November, it will be too late for the department to correct property characteristics and make adjustments that may impact the value of the property for tax year 2025,” Revenue Director Brendan Beatty said in a statement.
With sweeping tax changes now in effect, the state is promising fairer outcomes for more homeowners. But fairness also depends on accuracy. As many as 40% of homeowners are overpaying on their property taxes, according to a recent report from Realtor.com®. So acting before the 30-day deadline could have a significant impact in Montana.
To help homeowners make a strong case, Realtor.com offers a free property assessment comparison tool. It allows you to compare how your home’s valuation stacks up against recent sales in your area and generates data you can include in an appeal.
Take time to review your notice carefully. Compare it with recent sales in your area, check for errors in property details, and file an appeal if something doesn’t look right.
For a guide to reading your valuation and submitting an appeal, visit the Montana Department of Revenue’s reappraisal resource page.