Retire by state
Retiring in Montana
Montana offers wide-open mountains and Glacier National Park, with rising property taxes and a tax on Social Security.
A fit if
People drawn to mountains, big landscapes, and outdoor recreation, who value space and quiet over convenience.
Hard look if
Hard winters, wildfire smoke seasons, climbing property taxes, and state tax on Social Security all factor in.
Figures verified May 31, 2026.
Cost of living
95
BEA index, U.S. = 100
State income tax
~5.0%
Blended planning rate
Social Security
Taxed
2026 state treatment
How the plan models Montana
The state lines the calculator actually changes.
These are the assumptions the planner applies for Montana. They are blended, middle-bracket planning figures, not a tax return. Exemptions, county rules, and your own income mix can move the real number.
Cost of living
95
BEA regional price parities put Montana about 5.4% below the U.S. average cost level. The U.S. average is 100.
BEA Regional Price ParitiesState income tax
~5.0%
Montana can tax some Social Security income and uses a 5% blended planning rate for taxable retirement-income context. IRA and 401(k) withdrawals can still need a state-tax line in Montana, with exemptions and local rules checked against current state guidance.
Tax FoundationSocial Security
Taxed
Montana is one of the states where Social Security can still need a state-tax check.
AARP / IRS Pub. 915Property tax
0.8%
Property tax is local, but the Montana state-level planning rate used here is 0.8% of home value. On a $350,000 home, that is about $2,900 a year before county detail.
Tax FoundationSales tax
0%
Tax Foundation lists Montana with no broad state or average local sales tax in its 2026 combined-rate table.
Tax FoundationVehicle costs
Check cars
Vehicle costs need a separate check in Montana because value-based vehicle taxes or registration-linked property taxes can show up in the car budget.
FreeTaxUSA vehicle-tax guideLong-term care in Montana
The care cliff, in Montana dollars.
CareScout and Genworth 2025 median costs, compared with the national median. Long-term care is a separate planning layer from ordinary Medicare costs.
Assisted living
$6,075/mo
About $72,900 a year, 2% lower than the national median.
Nursing home (semi-private)
$8,973/mo
About $107,675 a year, 6% lower than the national median.
Home caregiver
$7,245/mo
About $86,944 a year, 9% higher than the national median.
Things to do in Montana
What daily life can look like.
Drive Going-to-the-Sun Road in Glacier
Glacier National Park is known for its historic lodges and the famous Going-to-the-Sun Road, which crosses the mountains. The National Park Service notes the full road usually opens by late June, and the west entrance area stays open year-round.
National Park ServiceRelax at Lake McDonald
Lake McDonald and the Trail of the Cedars give gentler ways to enjoy Glacier without a strenuous climb. Visitors can take in lakeside views, easy walks, and a boat ride, which suits a slower pace.
National Park ServiceHike the national forests
Beyond Glacier, Montana holds seven national forests with extensive hiking, camping, and fishing. The wide range of trails means options for both ambitious hikers and people who prefer short walks and scenic drives.
National Park ServiceWhat to know about Montana
The trade-offs worth weighing.
Montana taxes Social Security
Montana taxes Social Security benefits at the state level, with the amount tied to your income. The state revenue department does offer a partial exemption for some military retirement income, so the rules vary by income type.
Montana Department of RevenueProperty taxes have been climbing
Montana reappraises property values every two years, and rapid price growth has pushed home values and tax bills up. The state revenue department projected the average residential property would be reappraised about 21 percent higher in the next cycle.
Montana Free PressA property tax rebate may apply
To offset rising bills, Montana has offered homeowners a one-time rebate of up to $400 on property taxes paid, with eligibility rules about owning and living in the home. The state revenue department posts the current details each year.
Montana Department of RevenueWeighing two states?
Put Montana next to another state.
Compare cost of living, taxes, Social Security treatment, property and sales tax, and long-term-care costs side by side.
Common questions
Retiring in Montana, answered.
Does Montana tax retirement income?
Montana is one of the states where Social Security can still need a state-tax check. IRA and 401(k) withdrawals can still need a state-tax line in Montana, with exemptions and local rules checked against current state guidance. Montana can tax some Social Security income and uses a 5% blended planning rate for taxable retirement-income context.
AARP: how states tax retirement incomeIs Montana cheaper or more expensive than average?
BEA regional price parities put Montana about 5.4% below the U.S. average cost level. That price level is the first reason a national retirement number needs a Montana translation.
BEA Regional Price ParitiesWhat does long-term care cost in Montana?
In the CareScout and Genworth 2025 medians, Montana assisted living runs about $72,900 a year (2% lower than the national median) and a semi-private nursing-home room about $107,675 a year (6% lower than the national median).
CareScout / Genworth Cost of CareDoes Montana tax retirement income?
Yes, Montana has a state income tax and taxes Social Security benefits, with the amount based on income. Some military retirement income can be partly exempt, so the treatment depends on the type of income you receive.
Montana Department of RevenueSources
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