Variations in Receipt of Benefit
Benefit Varies with Income
Minimum Tax Amount Must be Paid
The program provides a refundable credit for qualifying individuals for a portion of their property taxes or rent paid in relation to their income. Property taxes are assumed to be 15% of rent payments. Threshold payments of taxes are determined by 12 brackets, ranging from 0% for those with income below $2,000, to 5% for those with income $12,000 and over. For incomes below $35,000, the entire credit of taxes in excess of the threshold is permitted. The percentage of credit in excess of the threshold is reduced in 10% increments, starting at 40% for those with income between $35,00 and $37,500. No credit is available for those with income $45,000 or more. In the case of a claimant who rents the homestead for which a claim is made, the credit is the amount of rent-equivalent tax paid less the deduction (with the same income thresholds above). The maximum credit granted may not exceed $1,000.
How is Benefit Disbursed
Credit to the income tax bill
Eligible Property Type
Characteristics of Eligible Property
Only residential property is eligible for this program. Up to one acre of property can be included.
Description of Eligibility Criteria
This program is for homeowners and renters age 62 and older during the claim period for which the benefit is sought. They must have lived in Montana for at least 9 months and at least 6 months as a owner or renter. The gross household income for all household members must be less than $45,000. Income is defined as gross household income which is all income received, taxable and nontaxable, by all individuals who live in your household. This includes, but is not limited to, the income of adult children and unrelated individuals living in the residence and includes the following forms of income: pension and annuity income, disability benefits (including SSI payments, veteran's disability and workers' compensation). A person is not disqualified as a claimant if the person changes residences during the claim period, provided that the person occupies one or more dwellings in Montana as an owner, renter, or lessee for at least 6 months during the claim period.
Local Option in Adoption of Program
Local government is unable to exercise an option
Local Option Regarding Program Features
No local option regarding program features
State Funding for Local Tax Loss
State reimburses all of the local government tax loss
Description of State Funding for Tax Loss
The state provides a refundable income tax credit.
[https://app.mt.gov/myrevenue/Endpoint/DownloadPdf?yearId=981 Accessed 03/27/2021]
View Archived Source
Montana Department of Revenue, 2019 Montana Form 2 Individual Income Tax Instructions (2019)
[https://app.mt.gov/myrevenue/Endpoint/DownloadPdf?yearId=1006 accessed 03/27/2021]
View Archived Source
[https://app.mt.gov/myrevenue/Endpoint/Form/24 accessed 03/27/2021]