Pros and Cons of Retaining in Montana
There are some benefits to living in Montana, but there are also drawbacks. The people tend to be less receptive to outsiders than those in more populous states. It is best to keep a low profile and try to blend in. However, bear in mind that Montanans are quite different from their counterparts on the west coast. Be prepared to face nosey neighbors, as well as judgmental people.
One of the pros of living in Montana is the lack of high-priced housing and long winters. Unlike Alaska and Wyoming, Montana is comparatively inexpensive compared to most other states. Its residential utility bills average just 10% of the national average. Similarly, transportation costs are also low. CNN Money reports that Montana has the lowest vehicle-related costs, and the lack of sales taxes is another benefit.
While the taxation in Montana is moderate, it is important to keep in mind that your Social Security income is subject to taxation. While your income from Social Security will be fully taxed, you will have a deduction of half of your income from your retirement account. Those with a federal AGI of less than $38,900 are eligible for an exemption of up to $4,400. Property taxes in Montana are also relatively low, and you can enjoy an exemption on residential property in the state.
Retirees should keep in mind the state’s lack of cosmopolitan life. The state’s average household income is in the bottom quarter of all states. If you’re prepared to settle in a small town, Montana may be a good choice. However, don’t expect to find a good paying job. You’ll likely be disappointed in your opportunity for upward mobility.