Overview
Montana offers vast open spaces, stunning mountain scenery, and a rural Western lifestyle that's increasingly rare in America. "Big Sky Country" has attracted wealthy buyers to areas like Bozeman and Whitefish, while working-class communities in Billings and Great Falls remain more affordable. The state has no sales tax and a relatively low overall tax burden.
Montana Real Estate Market
Montana's housing market has been transformed by wealthy in-migration, particularly to Bozeman, Whitefish, and the areas surrounding Yellowstone. These markets have become among the most expensive in the Mountain West. Meanwhile, eastern Montana cities like Billings and Great Falls remain relatively affordable. The state's limited housing supply and building constraints have intensified price pressures.
Property Taxes in Montana
Montana property taxes are based on market value with different rates for different property classes.
Average effective rate: 0.84%
Annual tax on median home: ~$3,780
Residential property: Taxed at approximately 1.35% of market value
First-Time Buyer Programs
Montana Board of Housing:
- Regular Bond Program - Below-market interest rates
- Down Payment Assistance - Second mortgage for down payment
- 80% Loan-to-Value Program - For those with larger down payments
Closing Costs in Montana
Montana closing costs are moderate, typically 2-3% of purchase price.
Common costs include:
- Title insurance: Based on purchase price
- Escrow fees: $400-$800
- Recording fees: County-dependent
- No transfer tax
Frequently Asked Questions
Bozeman has become a magnet for wealthy remote workers and second-home buyers, attracted by world-class skiing, proximity to Yellowstone, and Montana State University. Limited housing supply has driven prices well above regional norms.
Montana offers natural beauty and low taxes, but consider the harsh winters, limited healthcare options in rural areas, and high costs in popular destinations. Eastern Montana is more affordable but more isolated.
Rural Montana remains affordable compared to destination areas, but inventory is very limited. Properties with acreage are highly sought after. Be prepared for long drives to services and harsh winter conditions.