The short version
- Social Security taxed?
- Partly
- Income tax
- Brackets 4.7%–5.9%
- Property tax on a $300,000 home
- ≈ $1,830 / yr ($152 / mo)
- Everyday cost index (U.S. = 100)
- 96
- January / July high
- 32°F / 88°F
- Sales tax (state + local avg)
- 0.00%
Retiring in Montana
No sales tax, low property taxes, and unmatched scenery. Watch out: it still taxes Social Security (with deductions), and home prices in the mountain west have soared.
How Montana taxes your retirement income
Social Security: this state taxes a portion of benefits, usually above certain income levels.
Pensions: Small pension exclusion; new $5,500 deduction for filers 65+.
401(k) and IRA withdrawals: 401(k)/IRA withdrawals taxed as regular income.
The setup: Brackets 4.7%–5.9%.
Property tax & senior breaks
The average effective property tax rate is about 0.61% — roughly $1,830 a year ($152 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Property tax assistance program for lower-income homeowners.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 4% below the U.S. average. The combined state and average local sales tax is 0.00%.
Weather
January days top out around 32°F and July days around 88°F, with roughly 205 sunny days a year. Watch out for: Extreme cold snaps and summer wildfire smoke.
Healthcare
Decent care in Billings and Bozeman; vast distances to specialists.