United States
Cost of living in Montana
Cost of living in Montana comes in at 94.6, placing it 5 percent below the US average of 100 and 30th out of 51 jurisdictions. One of Montana's most notable features for budgeting purposes is its complete absence of a state sales tax, a distinction shared by only five states. Income tax follows a two-bracket progressive schedule for 2025: 4.7 percent on income up to $21,100 and 5.9 percent above that threshold. The federal standard deduction of $15,000 applies at the state level as well. Residents pay no sales tax on groceries, clothing, vehicles, or any other purchases, which meaningfully lowers the cost of daily transactions compared to states with 6 or 7 percent rates. Montana sits between Idaho (95.5) and North Carolina (94.3) on the national scale, making it an affordable but not rock-bottom option in the Mountain West.
Price level
94.6
US = 100
National rank
30th
of 51, dearest first
Income tax
5.9%
top rate
Sales tax
0%
state base rate
What your salary is worth in Montana
Because prices here sit at 94.6 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in Montana to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $56,760 | $94,600 |
| California (dearest) | $51,274 | $85,456 |
| Arkansas (cheapest) | $65,316 | $108,861 |
Compare Montana with anywhere in the US
To live the same in California you need
$81,913
to match $70,000 in Montana
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
Montana in context
Housing costs vary dramatically across Montana's geography. Bozeman, driven by tourism, remote-work migration, and proximity to ski resorts, now carries home prices that rival mid-tier coastal cities, pushing its local cost of living well above the statewide average. Billings, Great Falls, and Missoula offer more moderate housing markets, though Missoula has also seen price pressure from in-migration. The zero sales tax provides a meaningful offset that benefits all income levels, particularly large households with high consumption. Montana's progressive income tax top rate of 5.9 percent is not especially low, but the absence of any consumption tax means the effective total tax burden compares favorably with states that combine income and sales taxes. Rural counties, which cover most of Montana's vast area, remain among the least expensive places to own property in the Mountain West.
The closest state above Montana on price is Idaho at 95.5. Just below sits North Carolina at 94.3.
Frequently asked questions
Is Montana expensive to live in?
Montana sits at a price level of 94.6 where the US average is 100, so a typical basket of goods and services costs about 5% less than the national norm. That ranks it 30th most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in Montana?
To match the buying power of $60,000 earned at the US average, you would need about $56,760 in Montana. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does Montana charge?
Montana applies a top state income-tax rate of 5.9% and a base state sales tax of 0%. Two-bracket progressive for 2025 (single thresholds): 4.7% up to $21,100, 5.9% above. Standard deduction conforms to federal ($15,000 single for 2025). No state sales tax. Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.