How Much Does It Cost to Live in Montana?

Living in Montana offers a unique blend of natural beauty and outdoor opportunities. Understanding the financial aspects of residing here is important for anyone considering a move. While the state presents a distinct lifestyle, the costs associated with daily life can vary significantly depending on whether one chooses an urban center or a more rural setting. This article provides an overview of key expenses involved in living in Montana.

Overall Cost of Living in Montana

Montana’s overall cost of living is approximately 2.2% higher than the national average, indicating it is not among the cheapest states to reside in, but also not exceptionally expensive. This statewide average, however, masks considerable differences across its various regions.

Major cities within Montana demonstrate a varied financial landscape. Bozeman, for instance, consistently ranks as one of the most expensive areas, with a cost of living significantly higher than the national average. In contrast, cities like Billings and Missoula present more moderate expenses, while Great Falls tends to be more affordable. Rural areas typically offer lower costs, particularly for housing.

These variations are influenced by several factors, including population growth, particularly in popular destinations like Bozeman, which has seen increased demand for housing and services. The state’s economic characteristics, such as the prevalence of certain industries and tourism, also play a role in shaping local price levels. Understanding these nuances requires a closer look at specific expense categories.

Housing and Transportation Expenses

Housing typically represents the largest portion of a household’s budget, and in Montana, costs vary widely. The average rent across the state can range from approximately $1,427 to $1,995 per month. For specific cities, a one-bedroom apartment in Bozeman might rent for around $2,078, while Missoula averages $1,432 for a one-bedroom. More affordable options can be found in Billings, with one-bedroom rents around $1,112, and Butte, where average rent is approximately $800.

For those looking to purchase a home, the median home price in Montana was approximately $540,700 in January 2025. This median price is higher than the national median, indicating a competitive housing market, particularly in desirable areas. Popular cities like Billings and Missoula also show varying median home prices, with Billings at around $414,089 and Missoula at $548,217. Factors such as limited inventory, high demand, and proximity to amenities or employment centers significantly influence these prices.

Transportation costs are another substantial expense, and personal vehicles are often a necessity in Montana due to its expansive geography and limited public transit. The average price of gasoline in Montana was around $2.92 per gallon as of November 2024, which is slightly lower than the national average. Car insurance premiums in Montana vary, with full coverage averaging between approximately $1,346 and $2,193 per year. Factors such as driving record, age, and location within the state influence these rates.

While some larger cities like Billings and Missoula offer bus services, their reach is limited. This means most residents rely on their own vehicles for commuting, errands, and accessing the state’s vast recreational opportunities. Consequently, budgeting for vehicle maintenance, fuel, and insurance is a consistent and significant financial consideration for Montanans.

Food and Daily Essentials

The cost of groceries in Montana can vary, with some data suggesting they are slightly lower than the national average, while other sources indicate they might be marginally higher. For an individual, monthly grocery expenses can range from approximately $331 to $588. These figures can fluctuate based on dietary choices, where one shops, and the availability of local markets versus larger chain stores.

Dining out also contributes to daily expenses. A casual meal at a mid-range restaurant might cost around $10 to $22.77 per person, with a dinner for two averaging approximately $63.80. Fast food options typically range around $12.40. These costs are generally comparable to or slightly below national averages.

A notable aspect of daily essential purchases in Montana is the absence of a statewide sales tax on most goods and services. However, some municipalities and resort communities have the authority to levy local option sales taxes on specific goods or services, such as accommodations or recreational activities. Groceries and prescription drugs are explicitly exempt from sales tax even in areas where local taxes might apply.

Healthcare, Utilities, and Taxes

Healthcare costs in Montana can vary, though they tend to be lower than the national average overall. For individuals covered by employer-sponsored health insurance, the average annual employee contribution was approximately $1,157. For those seeking non-employer sponsored plans, the cheapest average premium could be around $635.00. Typical out-of-pocket expenses include about $106 for a general doctor’s visit, around $99.77 for a dentist appointment, and approximately $108.82 for an optometrist visit. The availability of healthcare services can influence costs, particularly in rural areas.

Utility expenses are a consistent monthly cost for residents. The average monthly cost for basic utilities, including electricity, heating, water, and sewer, generally falls within a range of $255 to $379. Heating costs, in particular, can see significant seasonal variations, with higher bills during the colder winter months. An average monthly electricity bill might be around $98, with gas around $52, and internet/cable services averaging about $106.

Montana’s tax structure is distinct in several ways. The state has a progressive income tax system, meaning higher earners pay a larger percentage of their income in taxes. For 2024, Montana streamlined its individual income tax rates into two brackets, with the top marginal rate set at 5.9%. The state also offers a standard deduction that aligns with the federal standard deduction. Property taxes are assessed by the Montana Department of Revenue and vary by county and locality, with an effective statewide rate of approximately 0.69%.

Income and Economic Landscape

Understanding the economic landscape of Montana provides important context for the cost of living. The average household income in Montana was approximately $94,544 in 2024, though other data sources indicate a median household income of around $69,922 in 2023. These figures provide a general benchmark for earning potential within the state.

Montana’s economy is diverse, driven by several key industries. Real estate, rental, and leasing sectors contribute the largest portion to the state’s Gross Domestic Product (GDP). Agriculture remains a significant industry, particularly in wheat and beef production. Healthcare and social assistance, along with manufacturing, also play substantial roles in the state’s economic output.

Tourism and services are also major contributors, attracting visitors to national parks and outdoor recreational areas, which in turn supports a wide array of businesses. The job market is influenced by these industries, with the leisure activity sector showing growth in job creation. While wages vary by industry and location, the state’s economic activity provides varied employment opportunities that contribute to residents’ ability to manage the cost of living.