What’s the cost of living in Montana?
When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If Montana is at the top of your list, here are some current statistics related to the cost of living in the state that could help you make up your mind.
The average cost of living in Montana
Montana is home to over 6.1 million people.
According to 2021 data from the Bureau of Economic Analysis, the average total personal consumption cost in Montana is $47,887.
According to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 34th in a list of states with the lowest to the highest cost of living.
Housing costs in Montana
As of March 2023, the average home value in Montana is estimated to be around $427,886, according to the Zillow Home Value Index as of March 2023.
It’s important to note that housing prices can significantly differ across various regions within the state.
Typical Home Prices in Montana (Zillow Data):
Bozeman - $647,146
Missoula - $517,660
Billings - $371,299
Great Falls - $288,396
Butte - $259,666
The monthly rental price ranges across the state for those considering renting in Montana. For example, the average cost of a two-bedroom apartment in Billings costs $900.
Utility costs in Montana
Utility costs play a significant role in Montana's overall cost of living. According to Forbes, the average monthly cost is around $379.
Average Monthly Utility Costs in Montana:
Phone bill - $114
Streaming - $47.50
Internet - $45
Energy bill - $97.84
Monthly water bill - $38
Natural gas - $37
Grocery and food costs in Montana
When it comes to groceries and food costs, Montana generally aligns with prices found elsewhere in the United States.
According to Zippia, those in Billings pay over $323 on average each month.
According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.
Transportation costs in Montana
Transportation costs, including gas prices and vehicle maintenance, impact Montana's overall cost of living.
According to MIT, a single adult with no children can expect to pay upwards of $5,300.
Gas prices in Montana are typically in and around the national average. At the time of writing, Montana was at the national average. These prices fluctuate over time.
It is also worth noting that prices can vary across different regions within the state.
Healthcare costs in Montana
Understanding healthcare expenses is crucial when considering the cost of living.
The specific healthcare costs in Montana can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates.
Annual Health Expenditure in Montana Estimated by MIT:
One adult, no children: $2,675
One adult, one child: $8,571
One adult, two children: $8,581
Two adults (one working), no children: $6,352
Two adults (one working), one child: $8,581
Two adults (one working), two children: $8,507
Two adults (two working), no children: $6,352
Two adults (two working), one child: $8,581
Two adults (two working), two children: $8,507
Childcare costs in Montana
Families in Montana currently pay around $9,589 per year for childcare for one child. This figure doubles for two children.
However, it's important to note that this figure can vary across the state.
Taxation in Montana
Montana’s state income tax rate ranges between 1% and 6.9%.
Taxes in Montana compared to neighboring states:
Delaware Income Tax Rate: No state income tax
Pennsylvania Income Tax Rate: Flat rate of 3.07%
New York Income Tax Rate: 4% to 8.82% (progressive tax rates)
Connecticut Income Tax Rate: 3% to 6.99% (progressive tax rates)
New Jersey Income Tax Rate: 1.4% to 10.75% (progressive tax rates)
The state sales tax rate in New Jersey is currently 6.625%. However, it's important to note that New Jersey allows local municipalities to impose an additional sales tax on top of the state rate. Therefore, the total sales tax rate in a specific location can vary depending on the local taxes imposed.
The bottom line
The amount of money needed to live comfortably in New Jersey can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in New Jersey. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning.
Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.
Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.