Montana Elderly Homeowner/Renter Credit
The Montana Elderly Homeowner/Renter Credit program is a property tax relief program that provides a refundable income tax credit of up to $1,150.
Eligibility
Elderly Montana homeowners or renters (age 62 or older) may qualify for this credit even if they do not have to file an income tax return.
You are eligible for this credit if, during the year for which you are claiming the credit, you:
- Are 62 years of age or older as of December 31,
- Lived in Montana for at least nine months,
- Rented, owned, or leased a home in Montana for at least six months, and
- Have a total household income less than $45,000
Benefit
The benefit is a refundable credit on your Individual Income Tax, up to $1,150.
The amount of your credit is calculated by a formula based on household income, rent, and property tax.
Forms
File for your Montana Elderly Homeowner/Renter Credit in our TransAction Portal for free.
Complete the Montana Individual Income Tax Return (Form 2) and the Schedule 2EC.
Credit Computation
Property Tax Billed
Property tax for purposes of the credit is property taxes, special assessments, and fees included on the property tax statement for up to one acre of land associated with the residence. If the one-acre farmstead or primary acre is not separately identified on the tax bill, use the one-acre land calculator to determine the amount of property tax paid on the land that is eligible for the credit.
Rent Equivalent Paid
Rent is the amount of money paid to occupy the home.
If you live in a healthcare, long-term care, personal care, or residential care facility, the rent allowed is the actual out-of-pocket rent paid, excluding services provided by staff, such as board expenses including meals, housekeeping, and transportation, and medical or paramedical expenses such as nursing care, assisted living care, and memory care. The out-of-pocket rent can be determined using a facility statement providing the breakdown between rent and these amenities. If you do not receive a statement from your facility, use the Long-Term Care Facility Rent Calculation Worksheet on Form 2, page 10 to determine the amount that would be considered rent for purposes of calculating the credit.
Rent paid for an apartment or a facility that is exempt from property tax is not eligible for the credit, unless the rent was paid to a county or municipal housing authority. Verify with your landlord or facility that the property is subject to property taxes beyond assessments such as sewer and garbage fees.
Montana Cadastral provides this information as well.
- Click on Search.
- Choose the county of the property. Then select By Address and enter the property’s address.
- This will bring up the Property Report Card.
- If the Property Type in the General Property Information section is listed as EP – Exempt Property, the rent paid to reside at the property is ineligible for the credit (unless the rent was paid to a county or municipal housing authority).
You may also contact us for assistance in determining if the property is exempt from property tax.