Who pays transfer taxes in Montana: The buyer or the seller?
While Montanans are free from transfer taxes during the closing, it’s a good idea to work with a real estate expert who knows the local market.
Clever Real Estate can help you cut costs here — our concierge team will partner you with an experienced agent who can help you negotiate a good deal with your buyer. You'll save big by paying only 1.5% in commission, which is much less than the Montana average of 2.79%.
Market conditions and negotiations could affect who ends up paying the transfer tax, however.
Does Montana have a mortgage tax?
While some states have an additional tax on mortgages, Montana does not. So if you're taking out a mortgage to purchase a property, you won't owe any additional tax on the mortgage amount, at least.Does Montana have any transfer tax exemptions?
No exemptions for transfer taxes are necessary in Montana.
However, you may be eligible for certain property tax exemptions in Montana. Read our guide to Montana real estate taxes to learn more.
🏠 Planning on selling a home you inherited in Montana? Read our guide to selling inherited property in Montana to learn what you can expect from the process.
Can you deduct transfer taxes?
Unlike property taxes, you cannot deduct real estate transfer taxes from your annual income taxes. However, the seller may be able to include this amount in the "cost basis" of the property, which can help defer capital gains taxes.
When you sell your home for more than what you paid for it, you could be subjected to paying capital gains tax. Capital gain is calculated by subtracting the sale price from the price it cost you to acquire the property. For example, if you purchased a home for $150,000 and sold it for $200,000, your capital gain would be $50,000. However, if you paid the $200 transfer tax instead of the buyer, your capital gain becomes $49,800 instead.
Most home sales in Montana will have no capital gains to claim. Individuals can exempt the first $250,000 in profit, while married couples filing jointly can deduct the first $500,000 of their profit. With a median home value far below these levels, in most cases, you won't need to worry about deductions in the first place. In the rare instance that it does, the transfer tax deduction can come in handy.
When do you pay transfer taxes in Montana?
Transfer taxes are normally due at closing, but you won't need to worry about that in Montana. You should be prepared for other closing costs like title service fees and agent commission, however.
💸 How much will your Montana closing costs be? Our Montana seller closing costs calculator can provide a detailed estimate.
Other considerations
The good news for buyers and sellers is that neither party has to figure out real estate transfer taxes on their own. The closing attorney will calculate this amount for you and include it as part of the closing costs on the settlement sheet. The transfer tax must be paid at the time of the closing in order for the new homeowner to take possession.
That said, responsibilities for ambiguous tax payments can be complicated. Buyers and sellers alike can benefit from partnering with an experienced local real estate agent who can help them navigate the complexities of the real estate transfer tax and other closing costs in Montana.
Clever can partner you with a local real estate agent who knows how to deal with the state’s tax and helps negotiate a deal in your favor. What’s more, our agents charge only a 1.5% listing fee compared to the state average of 2.79%! The money you'll save can more than offset the cost of the transfer taxes.
By selling with a great full-service realtor, you can get top dollar for your home to offset any transfer taxes. Clever helps you find the best realtors in your local market AND negotiates lower commission rates with them.
With Clever:
- You'll only pay a 1.5% commission to list your home
- Sellers save an average $7,000 on realtor fees
- Offers come in 2.8x faster than the national average
Our matching service is 100% free with no obligation. Try Clever today!
Methodology
- Transfer tax amounts are based on government website information as of October 2025.
- We gathered our listing commission rate data from a September 2025 survey of 828 of agents nationwide.
- Home values, list prices, and sale prices are based on Zillow data as of September 2025.
