Sale Type: | Tax lien assignment: the county holds the tax lien and assigns it to a buyer who pays the delinquent amount; a tax deed can follow if the lien is not redeemed |
Interest Rate: | Delinquent taxesProperty taxes that remain unpaid past the due date, which may result in penalties, interest, and eventually a tax lien being placed on the property. accrue a 2% penalty and interest of 5/6 of 1% per month (10% per year); what a lienholder actually receives depends on the county’s payoff and is not guaranteed |
Bid Method: | No competitive bidding in the statutes we reviewed; the buyer pays the delinquent taxes, penalties, interest and costs, and the county treasurer follows a policy if several buyers want the same lien |
Until the first working day in August, 3 years after the lien attaches (2 years for certain vacant residential or commercial lots with special improvement district assessments) | |
Sale Date(s): | The county attaches liens by the first working day in August; assignments follow, with the buyer’s notice to the owner sent not earlier than August 15 |
State Statute(s): | Mont. Code Ann. Title 15, Chapters 16, 17 and 18 (including §§ 15-16-102, 15-17-125, 15-17-323, 15-18-111 and 15-18-211 through 15-18-219) |
Yes, by assignment: the county treasurer assigns the lien to a buyer who pays the amount due, after required notice to the owner | |
State Website: | mca.legmt.gov (statutes); contact the county treasurer for available liens |
How Montana Tax Liens Work
Montana is a tax lien state. When property taxes go unpaid, the county treasurer attaches a tax lien to the property by the first working day in August, after the required notices have been sent. At that point the county holds the lien. The county can keep it, or assign it to a buyer.
Tax lien vs. tax deed: a tax lien investment means buying the unpaid tax debt, not the property. If the owner pays, the lienholder is repaid. If the owner does not pay within the redemption period, the lienholder can apply for a tax deed, which is when the property itself can change hands.
How a Buyer Gets a Lien: Assignment
Under the statutes we reviewed, Montana does not describe a competitive bidding auction for tax liens. Instead, a buyer can ask the county treasurer to assign a lien the county holds. In general:
The buyer sends the property owner a notice by certified mail. It must go out at least two weeks before the payment, not earlier than August 15, and not more than 60 days before the assignment.
The buyer pays the county the amount of the delinquent taxes, including penalties, interest and costs.
If more than one buyer wants the same lien, the county treasurer follows a policy for deciding who gets it.
Older guides, including earlier versions of this page, described a July auction where buyers bid for liens. Do not rely on that. Ask the county treasurer how assignments work in your county and which liens are available.
Interest, Penalties and What You Earn
Delinquent Montana property taxes carry a 2% penalty plus interest of 5/6 of 1% per month, which works out to 10% a year, until paid. A redeeming owner must repay the delinquent taxes, penalties, interest and costs.
Some details matter before you count on a return:
Nothing is guaranteed. Your return depends on the lien, the county’s payoff amount and whether the owner redeems.
Subsequent taxesAdditional property taxes that become due after the initial tax lien certificate is purchased. Lien holders may need to pay these to protect their investment.. After you hold a lien, you may pay later years’ taxes on the property when they go delinquent. If the owner redeems, those taxes are repaid with interest and penalty.
Confirm the payoff. Ask the treasurer exactly what a redemption pays to the lienholder before you buy.
Redemption: How Long Owners Have
The owner, an occupant, or any interested party can redeem the lien by paying what is owed. In most cases, the deadline is the first working day in August, three years after the lien attached. For certain vacant residential or commercial lots with delinquent special improvement district assessments, the period is two years.
An interested party includes a mortgagee, a lienholder, or another person with a properly recorded interest. When a lien is redeemed, the treasurer files a certificate of redemption, and the lienholder is repaid.
If No One Redeems: The Tax Deed
If the lien is not redeemed in time, an assignee can apply to the county treasurer for a tax deed. The treasurer charges a $25 deed fee plus the county’s actual costs for giving the required notices.
Notice rules are strict, and missing a step can put the lien at risk, so follow the treasurer’s instructions exactly. Extra requirements apply to some residential property that is occupied by the owner of record. If no one bought the lien, the county does not issue itself a deed unless the county commissioners direct it to by resolution.
What This Means for Investors
Montana’s system rewards patience and paperwork:
A long wait. The redemption period runs about three years, so money can be tied up for that long.
Interest is not a promise. The statutory rate describes what accrues on the debt, not what you will keep.
Notice and deadlines matter. Missing a mailing or a deadline can cost you the lien.
County-by-county practice. Each treasurer handles assignments in their own way.
What Investors Should Check
Before buying a Montana tax lien:
Call the county treasurer to confirm which liens are available, how assignment works and what the payoff would be.
Check the property, the taxes owed and any other liens or recorded interests.
Calendar the notice dates and the redemption deadline.
Understand what a tax deed would mean, including costs and notice duties.
Our guide on how to evaluate tax lien properties at auction covers the same due diligenceThe research and investigation process an investor conducts before purchasing a tax lien or tax deed to evaluate the property and assess risk. steps.
Check our tax lien states vs. tax deed states map to see how Montana compares with other states.
All investing involves risk. Outcomes depend on due diligence, and results vary. This page is general education only and is not legal, tax or financial advice. Talk to a licensed Montana attorney before you buy.
Learn How Tax Liens and Tax Deeds Work in a Free Workshop
Every state handles tax liens differently, and Montana shows why the details matter. Our team has helped 2,000+ students learn the basics, with a 4.9/5 Trustpilot rating and a BBB A+ accreditation. Register for a Free Workshop to see how both approaches work and decide whether either fits your goals.