Cost of Living in
Billings, MT

The Real Price Tag: Billings, Montana (2026 Edition)

You’ve seen the glossy relocation brochures and the generic cost-of-living calculators spitting out a number that feels almost too good to be true. They tell you Billings, Montana, sits at a Cost of Living Index of 90.2, roughly 10% cheaper than the national average. They’ll tell you a single earner needs roughly $36,865 to scrape by. But here is the reality: that number is the baseline for survival, not comfort. It assumes you are renting a small apartment, eating budget staples, and rarely indulging in the kind of social life that makes living worth the effort. "Comfort" in Billings, defined as the ability to save for a down payment, handle a mid-sized emergency, and actually enjoy your weekends without financial anxiety, requires a significantly higher baseline. We are looking at a single income closer to $55,000 for a truly stable existence, because the "cheap" index often masks the specific, aggressive way money leaves your wallet in this high-desert city.

The Big Items

Let’s strip away the averages and look at the engine of your monthly burn rate: housing, taxes, and the daily necessity of fuel and food. The "sticker shock" here manifests in specific, localized ways that national data misses.

Housing: The Rent vs. Buy Trap
The rental market in Billings is deceptive. You’ll see a 1BR for $874 and think you’ve found a bargain compared to the coastal cities. However, this is the entry-level price, and inventory at this level is tight. Moving up to a 2BR at $1,148 is standard for a young professional or a small family, but you are competing against the transient workforce in the oil and gas sectors who can afford higher premiums. Buying a home is currently a complex equation. While the median home price data is elusive in real-time feeds, the local market is characterized by high property taxes and inventory shortages in the "starter home" range (under $350,000). The "buy" side is a trap if you aren't prepared for the maintenance costs; the freeze-thaw cycle of Montana winters wreaks havoc on roofing and foundations, a cost the landlord absorbs in a rental but which will nickel and dime you relentlessly as a homeowner.

Taxes: The Property Tax Bite
Do not let the lack of general sales tax fool you; Montana makes its money on property and specific excise taxes. The "no sales tax" headline is the biggest distraction for relocators. The real hit is the property tax. While rates vary by county and mill levies, you can expect effective property tax rates to hover around 0.8% to 1.1% of the assessed value. On a $400,000 home, that’s roughly $3,200 to $4,400 a year—money that is gone forever and not building equity. For income tax, Montana has a progressive system ranging from 1% to 6.75%. If you are earning that $55,000 comfort salary, you are looking at a combined state and federal tax burden that can easily eat away 22-25% of your gross income before you even see a dime.

Groceries & Gas: The High Desert Premium
You will feel the pinch at the pump and the checkout line. Billings is a logistics hub, but that doesn't always translate to savings for the consumer. Gas prices often track slightly higher than the national average due to the sheer distance from refineries and the seasonal blend requirements for winter fuel. Expect to pay $0.10 to $0.20 per gallon over the US average. Groceries are the real kicker. While dairy and beef can be marginally cheaper if you buy direct, fresh produce and imported goods carry a premium. A standard grocery run for a family of four in Billings can easily hit $250-$300 weekly for quality food, comparable to much larger metro areas, because the "farm-to-table" slogan sounds nice but your wallet pays the shipping costs for anything not grown locally.

Hidden 'Gotcha' Costs

This is where the budget bleeds out. The "gotcha" costs in Billings are specific to the geography and the local governance.

First, there is the issue of Auto Insurance. Billings has a statistically higher rate of auto theft and weather-related accidents (hail) than the US average. Your premium will reflect this. Do not be surprised if your 6-month premium jumps by $150-$300 compared to where you came from. Second, while HOA fees aren't as ubiquitous as in Florida or California, they are creeping into newer developments. If you buy a townhome or a home in a planned subdivision, you could be looking at $150-$300/month in HOA fees just to maintain a sign at the entrance and a patch of grass you never use. Third, there is the "Winterization" Tax. This isn't a government tax, but a reality tax. You will need to budget for winter tires ($600+), block heaters, and higher natural gas bills. If you own a home, the cost of weatherproofing windows and doors is a recurring annual expense.

Lifestyle Inflation

Living in Billings is cheaper only if you live like a monk. The cost of socializing has risen sharply.

• The "Cheap" Beer & Burger: A decent pint of local craft beer and a burger at a mid-tier spot like The Draft or a similar local joint will set you back $22-$28 per person, before tip.
• Coffee: A standard latte is averaging $5.50 - $6.00.
• Gym Membership: A standard commercial gym (Planet Fitness, etc.) is cheap at $25/month, but specialized CrossFit or boutique fitness centers will charge $120-$180/month.
• Entertainment: A movie ticket is hovering around $14, but the real cost is the "drive-in" culture. While fun, the gas to get out to the Pryor Mountains or the Beartooths adds up. A weekend camping trip, once free, now often requires $25-$35/night campsite fees and $40 in gas.

Salary Scenarios

To truly understand the financial feasibility of moving to Billings, we have to look at the math under different lifestyle pressures. The following table breaks down the estimated gross annual income required to sustain these lifestyles, accounting for a standard 28% housing cost burden and a 25% total tax burden.