The Billings, MT Salary Guide: What $100k Actually Buys You

In Billings, a six-figure salary isn't just a milestone—it's a ticket to financial breathing room that coastal cities have priced out of existence. But the "sticker price" of your paycheck is a lie. We crunched the numbers to see what $100,000 actually lands in your bank account in Montana’s largest city.

The Verification Test ($100,000 Analysis)

Let’s run the verification test. You signed an offer letter for $100,000. The average American sees that number and mentally subtracts a vague "30% for taxes." In Billings, the reality is precise, and surprisingly forgiving compared to the national average.

Here is the hard breakdown of your gross pay versus net liquidity:

• Gross Annual Salary: $100,000
• Federal Tax: -$13,614
• FICA Tax: -$7,650
• Montana State Tax: -$4,500
• Local Tax: $0
• Total Tax Burden: $25,764 (25.76% Effective Rate)
• Net Take-Home Pay: $74,236

The Analysis:
You are keeping 74.2% of your earnings. While you lose a quarter of your income to the IRS and the State of Montana, you avoid the local city income taxes that plague places like Philadelphia or Detroit. The $25,764 deduction stings, but it leaves you with $74,236 in actual purchasing power. In Billings, this figure carries significantly more weight than it does in Austin or NYC.

Smart Budget Breakdown (50/30/20 Rule)

With a net monthly income of $6,186, we apply the 50/30/20 rule to gauge your financial health. This framework allocates 50% to Needs, 30% to Wants, and 20% to Savings/Debt.

Needs: $3,093/Month

Can you afford the rent?

In the Billings rental market, $3,093 is an exceptionally healthy buffer. The median rent for a one-bedroom apartment in Billings hovers between $900 and $1,200.

If you allocate the full "Needs" budget to housing and utilities, you are living in premium luxury compared to the local standard. Even if you spend $1,500 on a high-end unit, you are still well under the 50% threshold, leaving you with a surplus of cash in the "Needs" bucket to aggressively pay down debt or cover a mortgage.

Wants: $1,856/Month

Discretionary spending power.

This is where the Billings lifestyle shines. $1,856 is a massive allocation for dining, entertainment, and hobbies. You could eat out every night, maintain a gym membership, and fund a healthy social life without touching your savings. In coastal cities, this category is often eaten up by commuting costs or a single night out; in Billings, it funds a lifestyle of genuine leisure.

Savings: $1,237/Month

Wealth creation.

This is the most critical number on the page. Saving $1,237 monthly generates $14,844 per year in investments. In a low-cost-of-living environment like Billings, this savings rate is a wealth accelerator. You are effectively banking an entire entry-level salary every year. This level of liquidity allows you to max out a Roth IRA ($7,000) and still have nearly $8,000 left for a brokerage account or emergency fund.

Billings Taxes vs The Competition

To understand the value of a $100k salary in Billings, you have to look at the tax drag in other metros.

• Billings, MT: You pay $25,764 in taxes. You keep $74,236.
• New York City, NY: You would pay approximately $36,000+ in taxes (Federal + NY State + NYC Local). You would keep roughly $64,000.
• Austin, TX: You would pay $25,764 in taxes (Federal + FICA). You would keep $74,236.

The Verdict:
Texas has no state income tax, so the math looks identical to Billings on the surface. However, Texas relies on high property taxes (often 1.8%+) to make up the difference. Montana has lower property taxes. Combined with the significantly lower cost of goods and services, the $100k salary in Billings offers higher "real" purchasing power than the same paycheck in Austin, and destroys the value proposition of New York City.

Frequently Asked Questions (FAQ)

Q: What is the income tax rate in Billings?
A: Billings residents are subject to Federal taxes, FICA (7.65%), and Montana State Income Tax. Montana uses a graduated tax bracket, but for a $100,000 salary, the effective state tax rate is approximately 4.5%. There is no additional city income tax.

Q: Is $100k a good salary in Billings?
A: Yes. With a net take-home pay of $74,236 and median living costs significantly below the national average, a $100k salary puts you in the upper tier of earners in Yellowstone County. It allows for a high quality of life, aggressive savings, and significant discretionary spending.

Q: Does Billings have a local city tax?
A: No. Based on current data, Billings does not levy a local income tax on residents, unlike cities in Pennsylvania, Ohio, or Maryland.

Methodology & Sources:
Calculations based on IRS 2026 Tax Brackets (Standard Deduction applied), FICA rates (7.65%), and Montana State Comptroller tax schedules. Salary data cross-referenced with Bureau of Labor Statistics (BLS) wage data for Billings, MT.