With a 5.9% top income tax rate and 0.74% property tax, Montana homeowners face a moderate combined tax burden. This calculator is pre-filled with Montana numbers: $450,000 median price, 0.74% property tax, $1,600/year insurance.
Last updated: March 13, 2026
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Monthly Payment (Montana)$0
Loan Details — Montana
Montana median: $450,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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Montana average: 0.74%
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Montana average: $1,600/yr
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Property Tax
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Montana Metro Area Home Prices
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Yearly Amortization Schedule+
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Montana's Tax Landscape and Your Mortgage
Montana uses a progressive income tax with a top rate of 5.9%. A household earning $150,000 pays an estimated $5,753-$7,523 in state income tax, depending on filing status and deductions. That's $553/month less available for housing costs.
At the state's median home price of $450,000, the $0.74% property tax rate adds $278/month to your mortgage payment. That's $3,330/year — below the national median of ~1.1%.
Property Taxes Across Montana
The 0.74% statewide average masks significant variation. Property taxes are moderate but rising with assessments
Price ranges across the state: Bozeman has a median of $650,000, while Billings sits at $345,000 — a $305,000 gap that dramatically changes your monthly payment. At $0.74% property tax, that price difference alone means $188/month more in property tax in Bozeman.
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Homebuyer Programs and Exemptions
Montana offers several programs for homebuyers:
Montana Housing 80% Combined program with down payment assistance
Regular Bond program with competitive rates
Homestead exemption: No traditional homestead exemption; property tax assistance for low-income elderly/disabled
Montana-Specific Considerations
No sales tax — one of 5 states
Rapid price appreciation in Bozeman and Flathead Lake areas driven by remote workers
Property taxes are moderate but rising with assessments
Wildfire risk increasing insurance costs in many mountain areas
Property tax rates vary by county — Gallatin County (Bozeman) and Flathead County (Kalispell) are notably higher than eastern Montana
Compare Montana Mortgage Rates
See personalized rates from Montana lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
Alaska Mortgage Calculator
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1.04% property tax, no income tax. Median home: $340,000.
Arizona Mortgage Calculator
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0.62% property tax, 2.5% top rate. Median home: $395,000.
Frequently Asked Questions
What is the average property tax rate in Montana?
The average effective property tax rate in Montana is 0.74%. On a $450,000 home (the state median), that works out to approximately $3,330/year or $278/month added to your mortgage payment. Property tax rates vary by county and school district within Montana — always check your specific jurisdiction's rate. Homestead exemption: No traditional homestead exemption; property tax assistance for low-income elderly/disabled
How much does homeowners insurance cost in Montana?
The average annual homeowners insurance premium in Montana is approximately $1,600 ($133/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Montana?
Montana Housing 80% Combined program with down payment assistance. Regular Bond program with competitive rates. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Montana housing finance agency website for current eligibility requirements and application deadlines.
How does Montana's 5.9% income tax affect home affordability?
Montana's top income tax rate of 5.9% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $5,753-$7,523/year (effective rate is lower than the top marginal rate). The tradeoff: Montana's relatively low 0.74% property tax rate keeps the housing-specific portion of your tax burden lower. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in Montana?
The 2026 conforming loan limit in Montana is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Montana state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.