Rising property taxes are hitting homeowners hard across the country. But for seniors on a fixed income, it could be putting their retirement at risk.
For Dan and Carol Webster, their dream home in Bozeman, Montana has become a tax nightmare. The couple built their home in 2005 on the edge of what was then a quiet mountain town in the Gallatin Valley.
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“We stayed home and saved our money so that someday, like now, we could live the life that we want to live,” Dan told MTN News (1).
Back in 2005, the town had a population of 32,400 people. But Bozeman — now nicknamed “Boz Angeles” — is one of the state’s fastest-growing cities, with a current population of nearly 60,000 (2).
And that’s driven up home values. Over the past year, the Websters saw their annual property tax bill increase 107%, doubling from $25,885 in 2024 to $53,662 in 2025.
Now the Websters — both approaching 80 years old — find themselves in the position of being house rich, but income poor, because they “can’t pay the taxes.” Dan feels like they’re being forced out of Bozeman.
Property taxes are rising across the U.S.
The Websters aren’t alone in their predicament. Property taxes are rising faster than inflation across the U.S., according to an analysis from real estate data firm ATTOM. In 2025, the average homeowner paid $4,427 in property taxes, up 3% from 2024 (3).
This increase, however, corresponded with a drop in average estimated home value between 2024 and 2025.
“Higher tax bills combined with declining home values led to an increase in effective tax rates, underscoring the role of local government costs and shifting tax policies,” Rob Barber, CEO at ATTOM, said in a statement. “Regional disparities persist, with the Northeast and Midwest continuing to see the highest burdens.”
In comparison, the Consumer Price Index — a widely used measure of consumer inflation — increased 2.7% last year (4).
Property taxes are driven by the revenue needs of local government (rather than consumer prices). They’re used to fund public services such as schools, roads, law enforcement and emergency medical services, accounting for 70% of local tax collections in 2023, according to the nonpartisan Tax Foundation (5).
“Although several states have recently discussed property tax repeal, the tax’s efficiency means that attempts to eliminate it and replace it with other sources of revenue are less conducive to economic growth than keeping the tax in place,” according to policy analyst Janelle Fritts with the Tax Foundation.
Montana, for example, introduced a new property tax structure at the start of 2026, designed to lower rates for primary residences and long-term rentals while maintaining higher rates on second homes and short-term rentals (6).
Gov. Greg Gianforte told MTN News in a statement that property tax reforms resulted in lower property taxes last year for 80% of Montana homeowners (with an average savings of more than $500), while 10% of homeowners saw no change (7).
But this can also shift tax burdens, since “the same amount of money is still collected — you are by default increasing the taxes on someone else,” state Rep. Llew Jones told MTN News. And, he added, as property values rise, “you pull taxes toward yourself.”
The Websters’ property value has increased about 1,400% over two decades, according to MTN News’ coverage of data from the Montana Department of Revenue, and their home is now valued at more than $5 million. Because of its high assessed value, it’s taxed at a higher rate under state law.
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How to get some relief on your property taxes
Property taxes are based on the local property tax rate and the assessed value of your property. So, if your property is worth $400,000 and your tax rate is 2.5%, your annual property tax bill would be $10,000.
But a Realtor.com report found that as many as 40.5% of properties in the U.S. may be over-assessed. The median potential savings of challenging an over-assessed property value is $539 per year — more than 15% of the average property tax bill (8).
Realtor.com has introduced a tax protesting resource (9) to help navigate this process.
If you think your home has been over-assessed, you can request a copy of your property tax records from your local tax assessor’s office. If you notice any issues (such as incorrect property size or missed exemptions), you can bring those up with the assessor, who may conduct a re-evaluation.
Even if a re-evaluation doesn’t change your assessment, you can file an appeal, though this can be a lengthy process and typically requires the help of a lawyer.
Depending on where you live, certain groups may be eligible for local and state tax exemptions, such as seniors, veterans and people with disabilities. For example, many states offer property tax relief to qualifying seniors in the form of exemptions, tax freezes, tax credits or deferral programs (10).
You might also be able to get an exemption for renovations and home improvements, as well as for renewable energy upgrades, such as solar panels and geothermal heat pumps.
Every municipality is different, so check with your local tax assessor about which exemptions you may be eligible for.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
MTN News (1),(7); World Population Review (2); ATTOM (3); U.S. Bureau of Labor Statistics (4); Tax Foundation (5); Montana Department of Revenue (6); Realtor.com (8),(9),(10)
This article originally appeared on Moneywise.com under the title: Montana couple built their dream home 21 years ago — now a 107% spike to their property taxes could push them out
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
