Costs of Selling Land in Montana
Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.
- Cash offer in 24 hours
- No fees or commissions
- We pay closing costs
- Close in as few as 7 days
Seller Costs in Montana at a Glance
| Cost | Typical amount | Who usually pays |
|---|---|---|
| Transfer tax | None. The Montana Constitution prohibits a tax on real property transfers | n/a |
| Realty transfer certificate | Required form filed with the deed; no transfer tax is due on it | Buyer and seller (or their agents) complete it |
| Deed recording fee | $20 for the first page and $10 for each added page (since October 1, 2025) | Set by the contract; often the buyer |
| Title insurance or title search | Varies by company and price | Set by the contract and local custom |
| Closing or escrow fee | Varies by title company | Often split, as set in the contract |
| Prorated property taxes | Your share up to the closing date | Seller pays for the days they owned the land, as set in the contract |
| Federal capital gains tax | 0%, 15% or 20% on long-term gain; ordinary rates if held 1 year or less | Seller (on the tax return, not at closing) |
| Montana income tax on the gain | 2025: net long-term capital gains taxed at 3.0% or 4.1%; other income at 4.7% or 5.9% | Seller (on the Montana return) |
Example: Seller Costs on a $25,000 Land Sale
- Montana transfer tax
- $0
- Deed recording, 2 pages ($20 + $10), if your contract has you pay it
- $30
- Total seller costs in this example
- $30
- Net to seller before title, closing fees and income tax
- $24,970
Montana charges no transfer tax, so the only sourced line is the county recording fee: $20 for page one plus $10 for page two equals $30. $25,000 minus $30 equals $24,970. Title insurance, closing fees, prorated taxes and income tax vary and are not included. When you sell to EasyLotBuyer, we pay the closing costs.
Selling Costs in Montana: What to Know
Montana is one of the cheaper states to sell land in. The state constitution bars any tax on the sale or transfer of real property, so there is no state or local transfer tax to pay at closing.
You still have a few costs: recording fees, title work, your share of property taxes and income tax on any gain. This page lists each one, who usually pays it, and where the official rule is.
No transfer tax in Montana
Voters added a ban on real estate transfer taxes to the Montana Constitution in 2010. Article VIII, Section 17 says the state and local governments may not tax the sale or transfer of real property. See the constitution text.
Montana does require a realty transfer certificate with each deed. It reports the sale to the Department of Revenue. The county clerk and recorder will not record a deed without it (MCA 15-7-305). The form is a report, not a tax.
Montana is also a non-disclosure state for sale prices. Sale prices on the certificate are kept confidential, so public sold-price data for land is limited.
Who pays what by custom
No Montana statute says which party pays the recording fee, title insurance or the closing fee. The purchase contract decides. In many sales the buyer records the deed, and the closing fee is split. Ask the title company what is normal in your county.
Property taxes are usually prorated to the closing date. You pay for the part of the year you owned the land, and the buyer pays the rest.
Recording fees
A 2025 law raised clerk and recorder fees across Montana. Since October 1, 2025, recording a standard document costs $20 for the first page and $10 for each added page, as one county posts in its fee schedule. The law adjusts the fee for inflation starting in 2027, so confirm the current amount with your county.
Attorney or title company closing
Most Montana land sales close through a title company, which handles escrow, the title search and recording. You can hire a lawyer to review the contract or the deed, and that is often wise for estates, boundary questions or unclear title.
Capital gains basics: federal and state
Your taxable gain is the sale price minus your selling costs and your basis. Basis is usually what you paid plus improvements such as surveys, roads or wells. For inherited land, basis is generally the value on the date of death; see IRS Publication 551.
If you owned the land for more than one year, the federal government taxes the gain at the long-term rates of 0%, 15% or 20%, based on your income. Land held one year or less is taxed at your ordinary income rate. See IRS Topic 409. Higher earners can also owe the 3.8% net investment income tax (IRS Topic 559).
The home sale exclusion covers your main home. A separate vacant lot does not usually qualify on its own; see IRS Topic 701. The closing agent normally reports the sale to the IRS on Form 1099-S.
Montana has its own lower rates for net long-term capital gains. For tax year 2025, the Department of Revenue lists 3.0% and 4.1% for those gains and 4.7% and 5.9% for ordinary income, with brackets by filing status (2025 rates). A 2025 law (HB 337) widens the 4.7% bracket and lowers the top rate to 5.4% by 2027 (Legislative Fiscal Division). This page is general information, not legal or tax advice. Confirm the details with the county office or a tax professional before you sign.
How selling to a cash buyer changes the costs
On a listed sale, the seller usually pays an agent commission plus their share of the closing costs. When you sell your Montana land to EasyLotBuyer, there are no fees or commissions and we pay the closing costs. That includes the items in the table that a seller would normally pay at closing.
We make a cash offer within 24 hours and can close in as few as 7 days. If the land has back taxes, they are paid at closing from the sale. We also buy land with liens, title issues or no road access, and land held by heirs or an estate.
Your capital gains tax is still your own matter, because it depends on your basis and income. The closing agent will still report the sale on Form 1099-S.
- No agent commission
- No transfer tax or recording costs out of your pocket: we pay closing costs
- Back taxes paid at closing from the sale
- Try the offer calculator or the land value estimator
- See selling land in Montana
Sources
- 1. leg.mt.gov
- 2. leg.mt.gov
- 3. revenuefiles.mt.gov
- 4. parkcountymt.gov
- 5. revenue.mt.gov
- 6. archive.legmt.gov
- 7. irs.gov
- 8. irs.gov
- 9. irs.gov
- 10. irs.gov
- 11. irs.gov
Rules and fees change; check with the county before you act on them.
Selling Cost Questions in Montana
Does Montana have a real estate transfer tax?
No. Article VIII, Section 17 of the Montana Constitution bars the state and local governments from taxing the sale or transfer of real property.
What is the Montana realty transfer certificate?
It is a Department of Revenue form filed with the deed. It reports the sale and the price. The county will not record the deed without it, but no tax is charged on it.
How much does it cost to record a deed in Montana?
Since October 1, 2025, county clerk and recorders charge $20 for the first page and $10 for each added page of a standard document. Check your county's fee schedule.
How is capital gains on land taxed in Montana?
Montana taxes net long-term capital gains at lower rates than other income. For 2025 the rates were 3.0% and 4.1%. Federal tax also applies. This is not tax advice.
Do I need an attorney to sell land in Montana?
Most sales close with a title company. A lawyer is a good idea for estates, title problems or unusual contracts.
Who pays closing costs when I sell to EasyLotBuyer?
We do. There are no fees or commissions, and any back taxes are paid at closing from the sale.