Updated 2025 Tax Year

Daniels County
Property Tax Guide

Everything you need to know about property taxes in Daniels County, MT. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources

8 min read

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Quick Facts

Tax Rate

Varies by district - typically 1.2% to 2.5% of assessed value depending on local taxing districts

Exemptions

4+ Available

Section 1

How Property Tax Works

Daniels County, Montana operates on a property tax system that serves as the primary funding mechanism for essential local services including schools, county government operations, road maintenance, and various special districts. Property owners in Daniels County face an effective tax rate that varies significantly based on their specific location within the county due to different combinations of special taxing districts such as school districts, fire districts, and other local service areas.

The county follows Montana's standard assessment practices where properties are assessed at market value, with tax rates applied to generate revenue for local services. Property tax bills in Daniels County reflect contributions to multiple taxing jurisdictions, and the total tax burden can vary considerably between neighborhoods depending on which special districts serve each area. Property owners should expect their actual tax rate to differ from county averages based on their specific district combinations and any applicable tax credits they may qualify for and successfully apply to receive.

Section 2

What Makes Up Your Tax Bill

Based on available data for levy year 2025, Daniels County property tax rates include multiple components:

Component	Rate	Description
County General	Variable	Basic county services and administration
School Districts	Variable	K-12 education funding, varies by district
State Education	Statewide Rate	Montana state education equalization
Special Districts	Variable	Fire protection, library, road districts as applicable
Total Effective Rate	~19%*	Combined rate for levy year 2025

*Note: The 19% figure represents an average effective rate that varies significantly by location within Daniels County. Individual property tax bills depend on the specific combination of taxing districts that serve each property. This rate reflects a 10% increase from the previous levy year due to local government budget decisions and represents the mill levy applied to assessed property values.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Daniels County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.

Section 4

Supplemental Tax Bills

Supplemental property taxes in Daniels County are triggered by specific events that change property ownership or value during the tax year. The most common triggers include property sales that result in reassessment, completion of new construction or major improvements, and changes in property use classification. When these events occur, the county assessor calculates additional taxes based on the difference between the old and new assessed values.

For example, if a property is purchased mid-year and reassessed from $200,000 to $250,000, the supplemental tax would be calculated on the $50,000 increase, prorated for the remaining months in the tax year. If this occurred in March with 9 months remaining, the supplemental tax would be: ($50,000 × 0.19 mill rate × 9/12 months) = additional tax due. These supplemental assessments are billed separately from regular property tax statements and have their own due dates.

Example Calculation

Example 1: $300,000 Property

Market/Assessed Value: $300,000
Less: Homestead Credit (if applied): $300,000 capped assessment growth
Net Taxable Value: $300,000
Annual Tax: $300,000 × 0.19 = $5,700
Monthly Escrow: $475

Example 2: $600,000 Property

Market/Assessed Value: $600,000
Less: Veteran's Credit (if applied): Varies by qualification
Net Taxable Value: ~$600,000
Annual Tax: $600,000 × 0.19 = $11,400
Monthly Escrow: $950

Example 3: $1,000,000 Property

Market/Assessed Value: $1,000,000
Less: Available Credits (if applied): Varies
Net Taxable Value: ~$1,000,000
Annual Tax: $1,000,000 × 0.19 = $19,000
Monthly Escrow: $1,583

*Note: Credits shown require separate applications and approval. Actual rates vary by specific taxing districts serving each property.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Daniels County require property tax escrow accounts for borrowers with less than 20% down payment, though some lenders mandate escrow regardless of down payment amount. Lenders collect monthly escrow payments equal to approximately 1/12th of the annual property tax bill, plus insurance costs. These funds are held in a non-interest-bearing account and used to pay property taxes when due.

Given Daniels County's payment schedule with taxes due November 30th annually, lenders typically pay the tax bill directly to the county treasurer's office. Property owners should verify their escrow payments annually when tax bills are issued, as assessment changes or rate increases may require escrow payment adjustments. Borrowers have the right to request escrow account removal once they reach sufficient equity levels, typically 20-22% depending on the lender, but will then become responsible for making direct tax payments to avoid delinquency.

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Section 6

Frequently Asked Questions

Q: When are property taxes due in Daniels County for the current fiscal year? A: Property taxes are due November 30th each year. Taxes become delinquent if not paid by 5:00 PM on the due date.

Q: What tax credits are available and how do I apply? A: Montana offers several tax credits including homestead credits for primary residences and veteran credits for qualified military service members. These require separate applications to the county assessor and are not automatically applied.

Q: How does the homestead credit work? A: The homestead credit doesn't reduce your property's market value but instead caps assessment increases to help limit year-over-year tax growth. You must file an application with the county assessor to qualify.

Q: When are properties reassessed? A: Montana requires properties to be assessed at market value, with the assessment schedule determined by the county assessor's office. Property sales typically trigger immediate reassessment.

Q: What happens if I pay my taxes late? A: Late payments incur penalties and interest charges. Properties with extended delinquencies may eventually face tax lien sales or foreclosure proceedings.

Q: Can I pay my property taxes online? A: Contact the Daniels County Treasurer's Office at 406-487-2671 to inquire about available payment methods and online options.

Q: Why is my tax rate different from my neighbor's? A: Tax rates vary within Daniels County based on the specific combination of special districts (school, fire, library, etc.) that serve each property location.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the county tax appeal board within specific deadlines after receiving your assessment notice. Contact the county assessor's office for appeal procedures and deadlines.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

Tax Doc

Property Taxesgov.mt.gov

County

Annual Property Tax Changes by Countyrevenuefiles.mt.gov

County

DANIELS COUNTY GROWTH POLICYdanielscountymt.gov

Treasurerdanielscountymt.gov

Property Assessmentrevenue.mt.gov

RSID 664M Daniels Subyellowstonecountymt.gov

Subdivision Applicationdanielscountymt.gov

Property Assessment Divisionsvc.mt.gov

1 - Authorized Print Version – HB 816archive.legmt.gov

1 - Authorized Print Version – HB 816 HOUSE BILL NO. ...archive.legmt.gov

All sources verified as of 2025 Tax Year

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Daniels CountyProperty Tax Guide