Montana offers no sales tax, stunning natural scenery, and a lifestyle that attracts remote workers and retirees — but the housing market has become a serious financial obstacle. Bozeman and Missoula have some of the worst affordability ratios for small cities in the country, driven by out-of-state migration and limited housing supply. Billings and Great Falls remain genuinely affordable, with median incomes that can comfortably support homeownership. Montana’s income tax (up to 6.75%) and property taxes are moderate. The financial calculus depends almost entirely on where in the state you’re looking: western Montana is expensive, eastern Montana is cheap but remote.
Montana at a Glance
| Metric | Value | National Rank |
|---|---|---|
| Population (2024) | 1.1 million | 44th |
| Median household income | $66,341 | Below average |
| Median home price | $430,000 | Above average |
| Cost of living index | 103 | Average |
| State income tax | 5.9% flat (new 2024) | Average |
| Sales tax | None (1 of 5 states) | N/A |
| Property tax (effective rate) | 0.74% | Below average |
Income and Housing
| City/Area | Median Income | Median Home Price | Median Rent (2BR) |
|---|---|---|---|
| Bozeman | $68,000 | $620,000 | $1,800 |
| Missoula | $60,000 | $510,000 | $1,500 |
| Billings | $62,000 | $340,000 | $1,200 |
| Great Falls | $55,000 | $270,000 | $1,000 |
| Helena | $62,000 | $380,000 | $1,200 |
| Kalispell (Flathead) | $58,000 | $500,000 | $1,400 |
| Butte | $50,000 | $250,000 | $900 |
Key issue: Bozeman and Missoula home prices are 8-9x local median income — among the worst affordability ratios for small cities in the country.
Affordability Contrast
| Location | Home Price ÷ Income | Affordable? |
|---|---|---|
| Bozeman | 9.1x | No |
| Missoula | 8.5x | No |
| Billings | 5.5x | Borderline |
| Great Falls | 4.9x | Yes |
| Butte | 5.0x | Yes |
Montana Pros and Cons
| Financial Pros | Financial Cons |
|---|---|
| No state sales tax | Bozeman/Missoula housing wildly unaffordable |
| Low property taxes (0.74%) | Below-average income |
| Simplified flat income tax (5.9%) | Limited job market outside energy/ag |
| Low population, outdoor recreation | Cold winters (heating costs $2K-$4K) |
| Growing remote-work destination | Grocery prices above average (shipping) |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State