Montana is one of the most breathtaking states that nature lovers will enjoy calling home. It is popular for its vast and beautiful mountains, incredible waves of grains, and diverse set of outdoor activities.
Living in Montana is an excellent option for those looking to escape the hecticness of busy downtowns, and breathe in fresh mountain air. One of the biggest advantages of moving to Montana is the relatively affordable cost of living.
If you’re considering moving to Big Sky, understanding what type of budget you need is crucial.
This article is a complete guide to the average cost of living in Montana. We’ll provide a comprehensive examination by comparing average taxing, housing, transportation, food, healthcare, and utilities costs in Montana with the national averages.
Let’s begin!
Quick Rundown of Cost of Living in Montana
To give you a rough idea of the cost of living in Montana, we have included a comparison of Big Sky Country compared to the national state average.
In this chart, the cost of living indices are based on a national average of 100, so anything below that number indicates a below-average cost of living. Conversely, a cost of living index over 100 means that Montana is more expensive.
The median home price for Montana and the US refers to the value of the most recent home sales data. It is the middle value when arranging the sales price of homes from lowest to highest.
| Cost of Living | Montana | USA |
| Overall | 100 | 100 |
| Housing | 121.3 | 100 |
| Median House Cost | $441,800 | $338,100 |
| Health | 99.6 | 100 |
| Groceries | 99.6 | 100 |
| Utilities | 90.7 | 100 |
| Transportation | 75.2 | 100 |
| Misc. | 90 | 100 |
Household Income and Taxes
Finding the ideal salary to cover the cost of living in Montana will largely depend on your preferred lifestyle.
The average hourly rate of living wage in Montana is $15.72. It is the basic wage that is enough to pay for essentials like food, housing, and necessities for an individual adult. The average monthly salary after taxes in Montana is $3,726, and enough to cover around 1.9 months of living expenses.
Similar to most states, Montana residents are required to pay a progressive state income tax. The corresponding rate will be determined by income, from as little as 1% to a top rate of 6.75%.
Montana is also one of the states wherein goods and services can be purchased sales-tax-free, with the exception of ‘sin taxes;’ on alcohol and tobacco.
| Tax Type | Rate |
| Montana Income Tax | 1.00% – 6.75% |
| Montana Sales Tax | None |
| Montana Beer Tax | $0.14 per gallon |
| Montana Liquor Tax | $9.74 per gallon |
| Montana Wine Tax | $1.06 per gallon |
| Montana Fuel Tax | $0.33 per gallon (Gas), $0.2975 per gallon (Diesel) |
| Montana Average Property Tax | 0.74% |
As a relatively taxpayer-friendly state, Montana’s property taxes are below the US average. While the bottom personal income tax rate is low, the top rate is fairly high on average. To offset this, Montana offers several tax credits, which include a credit for capital gains.
