Montana Senior Property Tax Relief: Elderly Homeowner/Renter Credit

Montana residents 62 or older with combined household income below $45,000 can claim a refundable credit worth up to $1,150 a year, and it applies to renters as well as homeowners.1 That credit, the Elderly Homeowner/Renter Credit, is the main tool for Montana senior property tax relief, and you can file it for free through the state's online TransAction Portal even if you owe no income tax. Here is what it covers and how to claim it.

In This Guide

• Key Takeaways
• Montana Senior Property Tax Relief at a Glance
• Who Qualifies for the Credit
• What the Credit Covers
• How the Credit Is Calculated
• Homeowners vs. Renters
• Another Option for Homeowners: PTAP
• How to File
• Frequently Asked Questions
• Next Steps

Montana Senior Property Tax Relief: The Elderly Homeowner/Renter Credit

Montana's primary senior property tax program is the Elderly Homeowner/Renter Credit.1 It is a refundable credit (meaning the state pays it out even if you owe nothing in income tax) and it is available to both homeowners and renters. That combination makes it one of the more accessible senior property tax programs in the country.

The maximum credit is $1,150.1 The actual amount depends on the relationship between your property taxes (or rent equivalent) and your income. The $1,150 is the ceiling.

Montana's age threshold is 62, which is lower than the 65 that most state senior property tax programs require.1 If you turned 62 earlier this year, you may already qualify.

Combined household income must be below $45,000 to qualify.1 That figure covers all income coming into the household (wages, Social Security, pensions, investment income), not just taxable income. If household income is at or above $45,000, you do not qualify for this credit.

Montana Senior Property Tax Relief at a Glance

Who Qualifies for the Credit

To qualify for the Elderly Homeowner/Renter Credit, you must:1

1. Be 62 or older at the time of filing.
2. Have combined household income below $45,000 for the tax year.1
3. Have paid property taxes or rent on a Montana primary residence during the year.

There is no asset test. There is no requirement to have filed a Montana income-tax return previously. And because the credit is refundable, owing zero income tax does not disqualify you.1

If you share a home with a spouse or another adult, note that combined household income, not just your individual income, is used to determine eligibility. A household where two people each earn $25,000 ($50,000 combined) would not qualify even if each individual's income appears to be under the limit.1

What the Credit Covers

The credit is designed to offset the burden of property taxes (for homeowners) or the property tax component built into rent (for renters) relative to income.1

For homeowners, the credit is based on the property taxes actually paid on the primary Montana residence.

For renters, a percentage of rent paid counts as a stand-in for property taxes. The Schedule 2EC instructions specify how to calculate the rental equivalent amount.

The credit does not offset utility costs, insurance, or other housing expenses, only the property tax burden or its rental equivalent.

How the Credit Is Calculated

The credit formula compares the property tax (or rent equivalent) to household income. The lower your income relative to your tax burden, the larger the credit, up to the $1,150 cap.1

The exact formula is on Schedule 2EC. The Montana Department of Revenue's TransAction Portal walks you through the calculation step by step, so you do not need to work through the math manually.

A few things to keep in mind:

• The $1,150 maximum is the ceiling regardless of how the calculation comes out.1
• Because the credit is refundable, even a zero-income-tax filer can receive the full amount.
• If your combined household income is just under $45,000, the credit will be small, since the formula is designed to provide the most help to those with the lowest incomes relative to their tax burden.

Homeowners vs. Renters

This credit treats both groups comparably, which is unusual. Here is how each works in practice.

Homeowners use the actual property taxes paid on their Montana primary residence for the tax year. Pull your property tax statement or payment receipts before you file. If you pay through escrow, check your annual mortgage statement for the property tax amount disbursed on your behalf.

Renters use a calculated portion of their annual rent as a substitute for property taxes.1 Keep your lease and rent receipts for the year. The Schedule 2EC instructions will tell you what percentage of rent to use. The result is the number you enter in place of property taxes on the form.

In both cases, the credit works the same way after that point. The calculation does not favor one housing situation over the other in how the credit is determined.

Another Option for Homeowners: The Property Tax Assistance Program (PTAP)

The Elderly Homeowner/Renter Credit is a refundable credit, meaning the state sends you money. Montana homeowners on a fixed or limited income have a second, separate tool that works differently: the Property Tax Assistance Program (PTAP), run by the Montana Department of Revenue. Instead of paying you a credit, PTAP lowers the tax rate applied to your primary residence, so it reduces the property-tax bill itself rather than refunding money after the fact.

How PTAP differs from the Elderly Homeowner/Renter Credit:

• Who it is for. PTAP is for homeowners (not renters) whose income falls under the program's limits. There is no age requirement, so it is not limited to seniors, but many older homeowners on fixed incomes qualify.
• What it does. PTAP reduces the property-tax rate on your home on a tiered, income-based scale, so the lower your income, the larger the reduction. The exact income brackets and the size of each reduction are set by the Department of Revenue and adjusted periodically, so confirm the current figures before you apply.
• How you get it. You apply through the Montana Department of Revenue rather than claiming it on your income-tax return. Once approved, the reduction stays in place as long as you keep qualifying, so it does not have to be re-filed every year the way the Elderly Homeowner/Renter Credit does.

The two programs are not mutually exclusive: a qualifying senior homeowner can hold a PTAP rate reduction on their home and also claim the refundable Elderly Homeowner/Renter Credit in the same year.

To check your eligibility, the current income limits, and the application form, contact the Montana Department of Revenue at (406) 444-6900 or visit revenue.mt.gov. If you are unsure which program fits your situation, the department can walk you through both.

How to File

Option 1: With your Montana income-tax return. Complete Schedule 2EC and attach it to your Montana individual income-tax return.1 The schedule flows through your regular return and the credit is applied there.

Option 2: Standalone via the TransAction Portal. If you are not required to file a Montana income-tax return (or you simply prefer a separate filing) you can submit Schedule 2EC on its own through the Montana Department of Revenue's TransAction Portal at no cost.1 This is the option most seniors without other Montana tax obligations should use.

To file:

When to file. The credit is claimed for a completed tax year, so file after the year ends. If you attach Schedule 2EC to a Montana income-tax return, the normal individual-return deadline (mid-April) applies. If you file it standalone, the Montana Department of Revenue publishes the claim window in the current-year Schedule 2EC instructions. Do not wait until the last minute if you are claiming for a prior year, since standalone claims have a limited lookback window.

Next Steps

If you are 62 or older with combined household income below $45,000, this credit is worth claiming.1 It is refundable, covers renters, and is free to file online.

• Confirm your combined household income is below $45,000 before you start the form.
• Gather documentation: property tax bill (homeowners) or rent receipts (renters) for the tax year.
• File Schedule 2EC through the Montana Department of Revenue's TransAction Portal at revenue.mt.gov or attach it to your Montana income-tax return.1
• Check the current-year instructions for any updates to the income limit or maximum credit amount before filing.

For a broader look at funding senior care in Montana, see our guide on how to pay for senior care, which covers Medicaid, VA benefits, and other financial tools.

If you are weighing whether to sell your home to fund care, our guide on selling or renting your home for care walks through the tradeoffs.

For homeowners interested in borrowing against home equity without selling, see our overview of reverse mortgages for senior care.

Learn More

Find more guidance on Montana senior property tax relief at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.