Cost of Living in Montana

Things cost about ▼ 5% less in Montana than the national average.

What Things Cost in Montana

Compared to the US national average

Housing ▼ 28%
Goods ▼ 4%
Services ▼ 15%
See raw index numbers

US national average = 100. Source: BEA Regional Price Parities 2023.

Overall94.6
Housing (Rents)72.3
Goods96
Services84.6

Montana has no sales tax, which is its financial headline. Everything you buy, from a pickup truck to a cup of coffee, costs exactly the sticker price. Combined with jaw-dropping scenery, vast open space, and a lifestyle built around outdoor recreation, Montana has attracted enough newcomers in recent years to push housing costs above the national average, particularly in Bozeman and the Flathead Valley around Kalispell. Billings, the largest city, remains more affordable. The overall cost of living is about 2% above average, but the range within the state is wide: Bozeman has become genuinely expensive, while Great Falls and eastern Montana remain affordable.

Montana at a Glance

Median Household Income$60,560
Median Monthly Rent$1,050
Median Home Price$390,000
State Income TaxUp to 5.9%
Effective Property Tax0.74%

Taxes in Montana

Montana's state income tax tops out at Up to 5.9%. Property taxes run about 0.74% of home value, which on a $390,000 median home means roughly $2,886/year.

Cities in Montana

Ranked from least to most expensive. Index 100 = national average.

Bozeman (111.2) 11% above avg
Compare Cities

Note: Data based on state-level averages. Full disclaimer.

FAQ About Montana

Yes, by Montana standards and increasingly by national standards. Median home prices in Bozeman exceed $620,000, driven by demand from remote workers, retirees, and second-home buyers attracted to the skiing and outdoor lifestyle. This is a dramatic change from a decade ago. The rest of the Gallatin Valley is also expensive. Billings and Great Falls remain much more affordable.

No. Montana is one of five states with no sales tax at all, and it has no local sales taxes either. This means you pay exactly the listed price on everything from groceries to vehicles. Oregon and Delaware also have no sales tax, but Montana combines this with lower property taxes than either of those states. The no-sales-tax benefit is particularly noticeable on large purchases.

Statewide, Montana is about 2% above the national average. But the variation is enormous. Bozeman and Whitefish/Kalispell are well above average, driven by housing costs. Billings is near the national average. Great Falls, Helena, and eastern Montana are below average. If you are flexible on location within the state, Montana can be quite affordable. If you are set on the gateway communities near Glacier or Yellowstone, expect to pay a premium.