Delinquent Property Taxes in Montana: The Lien Is Assigned Over the Counter, and an Occupied Home Is Auctioned Rather Than Deeded
Reviewed by DocDraft Legal Team · Montana · Last updated October 21, 2026
Montana law obliges a county treasurer to assign a homeowner's tax debt to any person who asks for it, provided that person first mails the owner a certified warning and then pays the county the whole delinquency (Mont. Code Ann. 15-17-323(1)(a)). Delinquent property taxes are taxes an owner failed to pay by the statutory date, after which a penalty and interest are added and the property can eventually be lost to satisfy them. The two halves are payable by 5 p.m. on November 30 and 5 p.m. on May 31, and an unpaid half draws 2 percent as a penalty plus interest at 5/6 of 1 percent a month from the delinquency until paid (Mont. Code Ann. 15-16-102(2)(a), (3)(b)). Attachment happens no later than the first working day in August (Mont. Code Ann. 15-17-125(1)(a)), and that date, not the delinquency and not a sale, starts the clock. Redemption runs to the first working day in August, 3 years after attachment (Mont. Code Ann. 15-18-111(1)). The ending then splits. For most property the treasurer grants the assignee a tax deed (Mont. Code Ann. 15-18-211(1)). Where the land holds a dwelling currently occupied by the legal titleholder of record, the assignee may only apply, and the treasurer must hold a public auction within 60 days whose opening bid carries half the assessed value of the land and dwelling as surplus for that titleholder (Mont. Code Ann. 15-18-219(1), 15-18-220(1), (4)). Redemption money goes to the county treasurer (Mont. Code Ann. 15-18-113(1)). Attorney review is available through DocDraft.
Find out where you stand in Montana
Where are you with the unpaid property taxes?
DocDraft provides document preparation, not legal advice.
How long does a Montana owner have before a tax deed can issue?
Until the redemption period runs out. Redemption of a property tax lien may be made by the owner, the holder of an unrecorded or improperly recorded interest, the occupant, or any interested party by the first working day in August, 3 years after attachment of the tax lien (Mont. Code Ann. 15-18-111(1)).
How much does it cost to redeem a Montana property tax lien?
The delinquent taxes, the 2 percent penalty added when they went delinquent, interest at 5/6 of 1 percent a month from the delinquency until paid, plus costs and any subsequent taxes the assignee paid (Mont. Code Ann. 15-16-102(3)(b), 15-18-112(2)). The county treasurer totals interest and costs as of the payment date.
What event starts the three year redemption clock in Montana?
Attachment of the lien, not the delinquency date and not any sale. The county treasurer shall attach a tax lien no later than the first working day in August to properties on which the taxes are delinquent and for which proper notification was given (Mont. Code Ann. 15-17-125(1)(a)). The certificate records that date.
Can a former Montana owner receive money left over after a tax sale?
On the occupied dwelling route, yes, and no claim form is required. Half of the most recent assessed value of the land and of the dwelling sits inside the opening bid and counts as surplus funds, which the treasurer must distribute to the legal titleholder of record within 30 days of payment (Mont. Code Ann. 15-18-220(4), 15-18-221(3)).
Montana delinquent property tax rules at a glance
Montana runs this through one county office and one annual date in August. Delinquent property taxes here are taxes left unpaid past a statutory payment date, after which a penalty and monthly interest are added and the parcel can be lost to collect them. The county treasurer attaches a tax lien no later than the first working day in August (Mont. Code Ann. 15-17-125(1)(a)) and must assign it to any buyer who notifies the owner and pays the delinquency (Mont. Code Ann. 15-17-323(1)(a)). The owner has until the first working day in August, 3 years after attachment (Mont. Code Ann. 15-18-111(1)). The charge is interest at 5/6 of 1 percent a month plus a flat 2 percent penalty, neither bid at auction (Mont. Code Ann. 15-16-102(3)(b)). An occupied home cannot simply be deeded away, it is auctioned with an equity share inside the opening bid (Mont. Code Ann. 15-18-220(2)(b)(iv)).
A Lewistown house where the August anniversary falls, and Fergus County must still hold an auction
Fergus County attaches a tax lien to a Lewistown house on the first working day in August 2023, after roughly 3,400 dollars of the prior year's taxes went unpaid past the May 31 deadline (Mont. Code Ann. 15-16-102(2)(a), 15-17-125(1)(a)). Interest has run at 5/6 of 1 percent a month since the delinquency, on top of the 2 percent penalty (Mont. Code Ann. 15-16-102(3)(b)). An investor mails the owner a certified notice in late August, pays the treasurer, and takes the assignment (Mont. Code Ann. 15-17-323(1)(a), (5)). The redemption window closes on the first working day in August 2026 (Mont. Code Ann. 15-18-111(1)). Because the owner still lives in the house, the investor cannot be handed a deed; it applies, and the treasurer auctions the parcel (Mont. Code Ann. 15-18-219(1), 15-18-220(1)). Figures and dates for any real parcel come from the county treasurer's own calculation.
Relevant Laws
Mont. Code Ann. 15-16-102 (payment dates, the 2 percent penalty and 5/6 of 1 percent monthly interest)
Makes one-half of the taxes payable on or before 5 p.m. on November 30, or within 30 days after the tax notice is postmarked, whichever is later, and one-half on or before 5 p.m. on May 31. Provides that an unpaid amount is delinquent and draws interest at the rate of 5/6 of 1 percent a month from and after the delinquency until paid, with 2 percent added to the delinquent taxes as a penalty. Also sets the seven payment alternative schedule for primary residences, a 20 day grace for property in the 15-6-305 assistance program, and the right to pay current year taxes without paying delinquent taxes.
Mont. Code Ann. 15-16-122 (seven payment schedule for a primary residence)
Requires a county treasurer, at the request of the owner of a primary residence, to enter into a written agreement for payment of current property taxes on an alternative schedule of seven payments. Application is on county forms with a sworn statement that the property is a primary residence, must be made by September 30 for the current year, and enrollment continues until the owner asks in writing to end it. The treasurer may require enrollment in an automated payment program and may not accept these payments from a third party escrow service, lender or mortgage company.
Mont. Code Ann. 15-17-122 (published notice of pending attachment of a tax lien)
Requires the county treasurer to publish or post a notice of pending attachment giving the specific date on which the county will attach a property tax lien, stating that the delinquent taxes, penalties, interest and costs are a lien on the property and that unless they are paid before that date a tax lien will be attached and may be assigned to a third party. The notice must point to the list of delinquent properties on file in the treasurer's office and must be first published or posted on or before the last Monday in June.
Mont. Code Ann. 15-17-125 (attachment of the tax lien and the tax lien certificate)
Provides that the county treasurer shall attach a tax lien no later than the first working day in August to properties on which the taxes are delinquent and for which proper notification was given, that upon attachment the county is the possessor of the lien unless it is assigned under 15-17-323, and that no lien may attach where proper notice was not given. Requires a tax lien certificate stating the delinquency date, the attachment date, the separate amounts of taxes, penalties, interest and costs, and the date on which the county or an assignee will be entitled to a tax deed, with a copy filed with the county clerk and mailed to the assessed owner. Subsection (4) requires mailed notice at least 2 weeks before attachment, including notice of the available property tax assistance programs.
Mont. Code Ann. 15-17-323 (assignment of the county's tax lien, and the notice of pending assignment)
Requires the county treasurer to assign a tax lien certificate in which the county is the possessor to any person who, after providing proof of mail notice to the person to whom the property was assessed, pays the county the delinquent taxes, penalties, interest and costs accruing from the date of delinquency, and requires the treasurer to develop a policy for choosing between competing applicants. Sets out the assignment certificate form, requires a copy to be mailed to the assessed owner with notice that they may contact the treasurer about lien assignments and property tax assistance, and requires the buyer's certified mail notice of pending assignment to be sent at least 2 weeks before payment, not earlier than August 15 and not more than 60 days before purchase.
Mont. Code Ann. 15-18-111 (time for redemption, and who counts as an interested party)
Provides that redemption of a property tax lien may be made by the owner, the holder of an unrecorded or improperly recorded interest, the occupant of the property, or any interested party by the first working day in August, 3 years after attachment of the tax lien. For property subdivided as a residential or commercial lot on which special improvement district or rural special improvement district assessments are delinquent and on which no habitable dwelling or commercial structure is situated, the period is 2 years after attachment. Defines interested party to include a mortgagee, a contract for deed vendor or successor, a lienholder or other person with a properly recorded interest, and excludes a person whose interest is not properly recorded.
Mont. Code Ann. 15-18-112 (what the redemptioner pays, and subsequent taxes)
Lets an assignee pay the subsequent taxes assessed against the property once delinquent, on or after June 1 and before July 31, where the owner has not paid them. Provides that upon redemption the redemptioner shall pay, in addition to the amount of the property tax lien including penalties, interest and costs, the subsequent taxes assessed with interest and penalty at the rate established for delinquent taxes in 15-16-102. Gives an owner of less than all of the interest, or a lienholder, who redeems a lien for the taxes paid on interests not owned by the redemptioner, and allows a partial year redemption where the county owns the lien and no tax deed has issued.
Mont. Code Ann. 15-18-113 (paying the county treasurer, and the certificate of redemption)
Requires the county treasurer to execute a certificate of redemption, to be filed with the county clerk and recorder, upon payment to the county treasurer of all delinquent taxes including penalties, interest and costs by the person to whom the taxes were assessed or that person's agent, and upon distribution of the redemption proceeds under 15-18-114. Sets out the certificate form, which records the delinquent tax years, the date the lien attached, the tax lien certificate and any assignment certificate number, the date of redemption, and the taxes, penalty, interest and cost paid as separate line items.
Mont. Code Ann. 15-18-114 (what the assignee is paid out of a redemption)
Provides that where the county holds a redeemed lien the money, including penalties and interest but not costs, is distributed to the funds that would originally have received the taxes. Where an assignee holds the lien, the treasurer distributes to the assignee the amount the assignee paid the county for the lien plus any subsequent amount paid under 15-18-112 plus interest as specified in 15-16-102 from the date of payment until the date of redemption, with anything left over going to the taxing funds. The distribution must be made within 30 days of redemption, and sets a one year holding rule for returned payments.
Mont. Code Ann. 15-18-211 (tax deed to the assignee, and the 25 dollar fee)
Provides that except as provided in 15-18-219 and subsection (3), if the property tax lien is not redeemed in the time allowed under 15-18-111 the county treasurer shall grant the assignee a tax deed for the property, containing the same information as the tax lien certificate and assignment certificate except that the property description must be the full legal description. The treasurer charges the assignee 25 dollars for making the deed plus all actual costs of giving or assisting with the 15-18-212 notice, including reasonable record search costs. No deed may issue to the county unless the board of county commissioners directs it by resolution.
Mont. Code Ann. 15-18-212 (the May notice that a tax deed may issue, and cancellation for failure to notify)
Requires that between May 1 and May 30 of the year in which the redemption period expires, the county treasurer on an unassigned lien, or the assignee on an assigned lien outside 15-18-219(1)(b), notify the parties that a tax deed may or will be issued unless the lien is redeemed before the redemption period expires. Notice is by certified mail, return receipt requested, to the current occupant and to each party listed on a litigation guarantee. If the assignee fails to give notice, shown by failure to file proof of notice with the county clerk and recorder, the treasurer shall cancel the lien and the assignment certificate. Interest and costs continue to accrue until redemption, and before a deed issues on residential property with an owner-occupied dwelling the sheriff, treasurer or a designee must make reasonable attempts to deliver the notice personally.
Mont. Code Ann. 15-18-215 (the statutory wording of the notice an owner receives)
Sets out the two mandatory notice forms, one for property under 15-18-219(1)(b) and one for all other property. Both open and close with the line that if you do not respond to this notice, you will lose your property, and both require the notice to state the date the taxes became delinquent, the date the lien attached, any assignee, the taxes, penalty, interest and cost as separate figures, the date the redemption period expires, and the business address and telephone number of the county treasurer responsible for issuing the tax deed. The 15-18-219 version adds that a tax deed auction will be held within 60 days of the application date and that surplus funds from the auction will be distributed to the legal titleholder of record.
Mont. Code Ann. 15-18-219 (application for a tax deed on an occupied residential, agricultural or forest property)
Provides that where the lien is on property containing a dwelling currently occupied by the legal titleholder of record, being land classified residential under 15-6-134, agricultural under 15-6-133(1)(a) and (1)(c), or forest under 15-6-143, an assignee whose lien was not redeemed in the time allowed under 15-18-111 may only file an application with the county treasurer for a tax deed, paying a 25 dollar application fee plus the amounts needed to clear other liens, delinquent taxes, penalties, interest and current taxes. A notice of the application is filed with the clerk and recorder. The assignee must give the May notice that a tax deed will be auctioned unless the lien is redeemed before the date of the auction, and interest and costs continue to accrue until the date of redemption.
Mont. Code Ann. 15-18-220 (the public auction, the formula opening bid, and the surplus)
Requires the county treasurer, on receiving an application under 15-18-219, to hold a public auction in the county within 60 days, with published notice of the date, time, location, legal description, deposit requirement and minimum opening bid. The opening bid, which the treasurer may not go below, is the sum of the amount required to redeem the lien, the amounts the assignee paid at application, the deed and recording fees, and an amount equal to half of the most recent assessed value of the land and of the dwelling or half of an independent appraisal value. That half value portion, and anything bid above the opening bid, is surplus funds distributed under 15-18-221. The section also sets deposit and 24 hour payment rules, cancellation of the assignment where nobody pays or nobody bids, and a bar on selling to a foreign entity.
Mont. Code Ann. 15-18-221 (surplus paid to the former titleholder within 30 days)
Provides that where the tax deed is purchased by someone other than the assignee, the treasurer first pays the assignee the amount paid for the assignment of the lien including delinquent taxes, penalties, interest and costs, plus all amounts paid under 15-18-219(2). Requires that within 30 days of receiving payment from the purchaser of the tax deed, the county treasurer distribute surplus funds to the legal titleholder of record, and provides that the treasurer must process the surplus funds regardless of whether the legal titleholder is a resident of the state or not.
Mont. Code Ann. 15-18-214 (what a tax deed conveys)
Provides that subject to 15-18-411 and 15-18-413, a deed issued under the chapter conveys to the grantee absolute title to the property described in the deed as of the date of the tax deed, except where the claim is payable after execution of the deed and a subsequent property tax lien is attached or a special, rural, local improvement, irrigation or drainage assessment is levied, where the claim is an easement, servitude, covenant, restriction, reservation or similar lawfully imposed burden, or where the land is owned by the United States, the state or a state subdivision. The deed is prima facie evidence of the right of possession as of its date.
Mont. Code Ann. 15-18-218 (no recording charge for the treasurer's filings)
Provides that the county clerk and recorder may not impose a charge for tax lien certificates, assignment certificates, certificates of redemption, or any other form that the county treasurer is required to file or record with the county clerk and recorder. This is why a redeeming owner is not billed a recording fee for the certificate of redemption that clears the lien off the record.
Regional Variances
Montana delinquent property tax rules at a glance
Sale mechanism
A lien first, then either a deed or an auction. The county treasurer attaches a tax lien and the county possesses it unless it is assigned to a private buyer (Mont. Code Ann. 15-17-125(1)(a), 15-17-323(1)(a)). If the lien is not redeemed in time the treasurer grants the assignee a tax deed (Mont. Code Ann. 15-18-211(1)), except on property under 15-18-219(1)(b), where the assignee may only apply and the treasurer holds a public auction (Mont. Code Ann. 15-18-219(1)(a), 15-18-220(1)). The lien itself is never auctioned.
Delinquency dates
Two halves. One-half payable on or before 5 p.m. on November 30, or within 30 days after the tax notice is postmarked, whichever is later, and one-half on or before 5 p.m. on May 31 (Mont. Code Ann. 15-16-102(2)(a)). A primary residence owner may instead use the seven payment schedule running November 30 through May 31 (Mont. Code Ann. 15-16-102(2)(b), 15-16-122(1)).
Penalty and interest before any lien attaches
Two separate charges. 2 percent must be added to the delinquent taxes as a penalty, and the amount draws interest at the rate of 5/6 of 1 percent a month from and after the delinquency until paid (Mont. Code Ann. 15-16-102(3)(a)(i), (3)(b)). Taxes on property qualifying under the 15-6-305 assistance program may be paid without penalty or interest within 20 calendar days of the due date (Mont. Code Ann. 15-16-102(4)(b)).
Time before the lien attaches
Weeks, not years. The treasurer must attach the lien no later than the first working day in August on properties where taxes are delinquent and proper notice was given, and may not attach one where notice was not given (Mont. Code Ann. 15-17-125(1)). Assignment to a private buyer can follow from August 15 onward (Mont. Code Ann. 15-17-323(5)).
Redemption period and clock
The first working day in August, 3 years after attachment of the tax lien, which is the trigger rather than the delinquency date or any sale (Mont. Code Ann. 15-18-111(1)). For a subdivided residential or commercial lot with delinquent special improvement district assessments and no habitable dwelling or commercial structure, 2 years after attachment (Mont. Code Ann. 15-18-111(2)). On the 15-18-219 route the statutory May notice refers to redemption before the date of the auction (Mont. Code Ann. 15-18-219(4)(a)).
Redeemer's charge
Monthly simple interest plus a separate flat penalty, with nothing bid and no minimum return. Interest runs at 5/6 of 1 percent a month from the delinquency until paid, and 2 percent was added as a penalty when the tax went delinquent (Mont. Code Ann. 15-16-102(3)(b)). Where the lien was assigned, the treasurer pays the assignee what it paid plus subsequent taxes plus interest at that same rate from the date of payment to the date of redemption (Mont. Code Ann. 15-18-114(2)(a)).
Other redemption costs
Costs, which continue to accrue until the date of redemption and are totalled by the treasurer as of the date of payment (Mont. Code Ann. 15-18-212(6), 15-18-219(5)). Subsequent year taxes the assignee paid, with interest and penalty at the delinquent tax rate (Mont. Code Ann. 15-18-112(2)). A 25 dollar deed or application fee plus the county's actual notice costs falls on the assignee (Mont. Code Ann. 15-18-211(2)(a), 15-18-219(1)(a)), and the clerk may not charge for the treasurer's filings (Mont. Code Ann. 15-18-218).
Notice to the owner
Published notice of pending attachment first published or posted on or before the last Monday in June (Mont. Code Ann. 15-17-122(3)), mailed notice at least 2 weeks before attachment listing the assistance programs (Mont. Code Ann. 15-17-125(4)), certified notice of pending assignment from the buyer (Mont. Code Ann. 15-17-323(5)), and the certified mail notice that a tax deed may issue, sent between May 1 and May 30 of the year the redemption period expires (Mont. Code Ann. 15-18-212(1), 15-18-219(4)). An assignee who skips that last one loses the lien (Mont. Code Ann. 15-18-212(3)(b)).
Where to redeem
The county treasurer of the county where the property is located. Payment of all delinquent taxes, penalties, interest and costs goes to that office, which then executes a certificate of redemption and files it with the county clerk and recorder (Mont. Code Ann. 15-18-113(1)). The statutory notice form carries that treasurer's address and telephone number (Mont. Code Ann. 15-18-215(1)).
Surplus proceeds
Automatic on the occupied dwelling route. The opening bid must include an amount equal to half of the most recent assessed value of the land and of the dwelling, or half an independent appraisal value, and that portion plus anything bid above the opening bid is surplus funds (Mont. Code Ann. 15-18-220(2)(b)(iv), (4)). The treasurer must distribute surplus to the legal titleholder of record within 30 days of the purchaser's payment, resident or not (Mont. Code Ann. 15-18-221(3)). The straight deed route under 15-18-211 has no auction and no surplus.
Payment plan
Two statutory routes. A primary residence owner may require a written agreement for seven payments of current taxes, applying by September 30 for the current year (Mont. Code Ann. 15-16-122(1), (3)). Separately, a taxpayer may pay current year taxes without paying delinquent taxes, and the treasurer must accept a payment covering the delinquent taxes, penalty and interest for one-half of a delinquent tax year, oldest first; that payment is not a redemption of the lien (Mont. Code Ann. 15-16-102(5)(a)).
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