| Index | Billings | Montana | National |
| Cost of living | 107 | 102 | 100 |
| Groceries | 102 | 103 | 100 |
| Health care | 103 | 102 | 100 |
| Housing | 117 | 101 | 100 |
| Transportation | 102 | 100 | 100 |
| Utilities | 107 | 104 | 100 |
| Lifestyle & Entertainment | 98 | 100 | 100 |
| Household Items | 100 | 100 | 100 |
| Education & Childcare | 103 | 102 | 100 |
Knowing the cost of living in Billings allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Billings stands at 107, marking it 7% higher than the national average.
In Billings, daily expenses such as food, housing, lifestyle expenses, transportation and health care are in line with comparable areas and about average when compared to all cities across the nation. This ensures that the cost of living in Billings will resemble that of an average city, contributing to a manageable cost of living.
Locals have the inside scoop on their city. So, we polled 19 residents in Billings to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 37% find it reasonable with decreasing prices, but 63% think it's quite pricey, with prices that continue to rise.
Is Billings an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Billings is 26.3% higher than the national average, while the average monthly rent prices are 3.9% lower than average. The affordability of any location can also be influenced by median income levels. Billings has a median household income of $89,189, which is 9.7% higher than the national average.
Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.
Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday household expenses like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Billings starts at 0% and the income tax rates start at 1%.
Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Billings, healthcare costs are 3.1% higher than the national average.
The cost of living data for Billings shown above is based on a U.S. average baseline score of 100, making it easier to compare how far your dollar may go from one city to another. Housing uses U.S. Census home price and rental data, while all remaining values are AI-assisted estimates informed by regional pricing, climate, transportation dynamics, and local economic factors. These scores are best used for directional comparisons between cities.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $112,113 | $9,343 | $2,616 | $3,364 |
| Renters | $58,227 | $4,852 | $1,359 | $1,747 |
| State | General Sales Tax | With Max Surtax |
| Montana | 0% | 0% |
| State | Income Tax (Low) | Income Tax (High) |
| Montana | 1% | 6.75% |
| City | Population | Cost of Living Index | National Avg. |
| Shepherd, MT | 972 | 102 | 2.2% |
| Laurel, MT | 6,995 | 99 | 1.0% |
| Lockwood, MT | 8,497 | 103 | 2.6% |
| Huntley, MT | 539 | 107 | 7.3% |
| Billings, MT | 113,244 | 107 | 6.7% |
| City | Population | Cost of Living Index | National Avg. |
| West Palm Beach, FL | 113,363 | 116 | 16.4% |
| Boulder, CO | 112,777 | 176 | 76.2% |
| Centennial, CO | 113,795 | 145 | 44.8% |
| Delta, BC | 112,691 | n/a | |
| Broken Arrow, OK | 112,690 | 96 | 3.9% |
| Billings, MT | 113,244 | 107 | 6.7% |
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