The tax rate determines the taxable portion of a property’s value and is a key part of the equation used to calculate the taxes owed on a particular property. There are more than 16 different classes of property in Montana, including a class for residential. Each of those classes pays a different tax rate, and the state Legislature, not local governments, sets these tax rates. 

After years of large increases in residential property values across the state, the 2025 Legislature revised tax rates for residential, commercial and agricultural property. Changing the tax rate that applies to a property’s market value revises the taxable portion of a property’s value. Lowering the tax rate for some properties shifts property taxes to properties that do not receive rate reductions.

Click here for more details on how the revised tax rates will affect different kinds of properties.

The County sets its budget first, which then determines what we'll levy in taxes – not the other way around. Every year, Missoula County goes through an extensive public process to determine the budget for the following fiscal year. Each department presents the costs of maintaining current operations and services, as well as any requests for new money that would improve these services. The commissioners then weigh the benefits of providing these new services with any impact on taxpayers. They also must work within the confines of state law that limits annual property tax increases to half the rate of inflation from the previous three years. Following public hearings, they vote on whether to adopt the final budget.

While the budget determines property taxes, it’s important to note that only about one-third of the County’s budget comes from property taxes, so an increase in the budget does not necessarily correlate to the same increase in property taxes. The County strives to leverage grants, fees and other outside revenue as much as possible to minimize the need for additional funding from property taxes.

While you may write a check to Missoula County, not all of those taxes come to us. Missoula County collects and distributes taxes for all taxing jurisdictions within the county, and much of the taxes you see on your tax bill support jurisdictions other than the County, such as the City and schools, as well as special districts that provide fire protection, public transit and other services. Each of these jurisdictions has their own budget process that determines how much they will levy in property taxes. 

The state Department of Revenue (DOR), not Missoula County or the City, calculates residential property appraisals and sends out notices to property owners across the state. Local governments are not involved in this process. 

2025 is a reappraisal year. Property owners will receive notices in the mail this this summer with the updated appraised value of their home or property. You can check your property record card, which has your taxable and assessed value online.

This process occurs every two years and those increase compound with each cycle. (For those who have lived here for a long time, every two years may seem frequent. That’s because it is – until 2015, DOR appraised property every six years.)