The 7 Best Places to Retire in Montana in 2023 - NewHomeSource (2023)

FAQs

Where is the best place to retire in Montana? ›

Kalispell

This retiree-friendly community is perfect for those who want to leave behind the crowds to enjoy all nature has to offer. Kalispell is surrounded by mountains and lakes that offer hiking trails and fishing spots, as well as thrilling slopes for skiing in the winter.

The top five states where your money will go further are Alabama, South Carolina, Tennessee, West Virginia and Wyoming. While Wyoming ranks in the top ten for quality of life, the other four are at the tail end of the list, it and the others are laggards with respect to health care when compared to the other states.

Montana is moderately tax-friendly toward retirees. Social Security income is partially taxed. Withdrawals from retirement accounts are fully taxed. Wages are taxed at normal rates, and your marginal state tax rate is 6.75%.

Montana Income Taxes

Montana tax on retirement benefits: Montana does tax Social Security retirement benefits, but the amount taxed may differ from the federal taxable amount. Railroad Retirement benefits are not taxed in Montana. In 2023, some pension and annuity income may qualify for a partial exemption.

Back in October, the Social Security Administration announced the cost-of-living adjustment, or COLA, for benefit checks in 2023. Due to soaring inflation this year, seniors will receive 8.7% more next year -- the largest increase since 1981, and the fourth-highest bump ever.

The increase, the largest in more than 40 years, will boost retirees' monthly payments by more than $140 to an estimated average of $1,827 for 2023.

Social Security benefits and Supplemental Security Income (SSI) payments will increase by 8.7% in 2023. This is the annual cost-of-living adjustment (COLA) required by law.

Lancaster, Pennsylvania, ranks as the best place to retire in the U.S. thanks to a high quality of life, a reasonable cost of living and proximity to health care options. READ: The Best Beach Towns to Retire in the U.S.

What is the best day to retire in 2023? ›

One FERS date, June 30, is not only at the end of the month, but also the end of a leave period. This is a particularly good date, because it allows for one last accumulation of annual leave to create a larger lump sum payout.

1. Alaska. Alaska is the most tax-friendly state for retirees because it has no state income tax or tax on Social Security. And its sales tax rate is the fourth lowest on our list - fifth lowest in the U.S. But keep this in mind: The cost of living in Alaska is higher than in most states.

TAX-FRIENDLY RETIREMENT

Not only does this state have an overall lower tax burden than the rest of the United States, but its income tax rates are also capped at 6.65 percent. Certain amounts of social security payments and pensions aren't taxed, and there is no sales tax in Montana at all.

Due in large part to a relatively low cost of living, retirement is relatively affordable in Montana. The average 65 year old in the state will spend an estimated $998,983 to retire comfortably, about $121,400 less than the typical 65 year old American. A relatively large share of Montana's population are 65 or older.

Based on the findings, Wyoming ranked 2nd overall. According to the study, the region surrounding Wyoming is a good place to retire to in general. The study ranked South Dakota 3rd, Colorado 5th, Idaho 6th, and Montana 8th.

Low unemployment (2.1 percent in December 2022) and a lively downtown area with microbreweries, restaurants, a live theater, and a symphony are some of the factors that make Montana's capital a great place to live.

Montana Property Taxes

If so, it's a good idea to get familiar with the Montana property tax system. Montana has relatively low taxes on residential real estate. The state's average effective property tax rate is 0.74%, well below the U.S. average, which currently stands at 0.99%.

Fortunately, there are some states that don't charge taxes on retirement income of any kind: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming.

Montana has a graduated individual income tax, with rates ranging from 1.00 percent to 6.75 percent. Montana has a 6.75 percent corporate income tax rate. Montana does not have a state sales tax and does not levy local sales taxes. Montana's tax system ranks 5th overall on our 2023 State Business Tax Climate Index.

How do I get the $16728 Social Security bonus? ›

To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.

You must have worked and paid Social Security taxes in five of the last 10 years. • If you also get a pension from a job where you didn't pay Social Security taxes (e.g., a civil service or teacher's pension), your Social Security benefit might be reduced.

Forecasts say it may be stingier in 2024. This year, the nation's 66 million Social Security recipients got their biggest benefit hike since 1981 — an 8.7% cost-of-living adjustment meant to help offset the highest inflation in four decades.

What is the $900 grocery stimulus for seniors? In short, there isn't one — yet. While there was some chatter about a possible $900 grocery stimulus for seniors 60 and over, there was zero federal funding passed for 2022 or 2023 for stimulus payments of any kind on a national scale.

Social Security benefits are way up, Medicare premiums are falling, and hopefully, inflation will keep falling. But after a year during which inflation topped out at over 9% and Medicare premiums shot up, there's still a lot to make up for. Ultimately, 2023 should be a good year, but probably not the best ever.

As GOBankingRates previously reported, the Social Security Expansion Act was first introduced on June 9 by Sanders and U.S. Rep. Peter DeFazio (D-Ore.). Under terms of the bill, anyone who is a current Social Security recipient, or who will turn 62 in 2023, would receive an extra $200 in each monthly check.

Last Updated: October 13, 2022

Approximately 70 million Americans will see a 8.7% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2023. On average, Social Security benefits will increase by more than $140 per month starting in January.

Social Security benefits may or may not be taxed after 62, depending in large part on other income earned. Those only receiving Social Security benefits do not have to pay federal income taxes.

According to the Social Security Administration (SSA), the average monthly retirement benefit for Security Security recipients is $1,781.63 as of February.

Many well-established urban — and often suburban — locales are highly walkable as rated by Walkscore, which rates cities and neighborhoods on their relative walkability. San Francisco, New York, Boston, Chicago and Washington, D.C., were the highest-rated cities in the Walkscore rating system.

What US state is the cheapest to retire in? ›

Five of the 10 most affordable states — Wyoming, Idaho, Colorado, Delaware and Tennessee — rank among the nation's most tax-friendly, according to a Kiplinger analysis. The least affordable states for retirees are clustered on the coasts: Massachusetts, New York, Connecticut, New Jersey and California.

'It's probably best to retire at the start of the tax year for most people,' says Sean McCann, chartered financial planner at NFU Mutual. 'On 6 April you start with a clean slate. '

This May, all CalPERS retirees who retired in 2021 or earlier will receive an increase to their cost-of-living adjustment (COLA). This is a result of the annual rate of inflation measured by the Consumer Price Index (CPI-U) that was 8% for 2022.

67-70 – During this age range, your Social Security benefit, if you haven't already taken it, will increase by 8% for each year you delay taking it until you turn 70.

Which Are the Tax-Free States? As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax.

In 2020, the average American contributed 8.9% percent of their income in state taxes. Alaska had the lowest average overall tax burden – measured as total individual taxes paid divided by total personal income – at 5.4%, followed by Tennessee (6.3%), New Hampshire (6.4%), Wyoming (6.6%) and Florida (6.7%).

To qualify for a service retirement, you must meet the following age or service requirements: Age 60 with at least five years membership service; Attain age 65 while employed; regardless of years of membership service.

How much does the average retired person live on per month? ›

People ages 65 and older had an average income of $55,335 in 2021. Average annual expenses for people ages 65 and older totaled $52,141 in 2021. 48% of retirees surveyed reported spending less than $2,000 a month in 2022. 1 in 3 retirees reported spending between $2,000 and $3,999 per month.

For many people, $50,000 is enough income to live comfortably, although your location and lifestyle are important factors. In coastal cities, that money doesn't go as far, but there are certainly households in New York City that live on one or two Social Security incomes amounting to less than $50,000.

Wyoming has the lowest average cost of living among all of the Rocky Mountain states, beating out neighbors like Utah, Colorado, Idaho, and Montana. It also ranks among the top 20 most affordable states in the nation, according to MERIC data collected in 2022.

Californians Make Up the Majority of Inbound Residents

Further research confirmed their findings; The San Francisco Chronicle reported more than 13,000 Californians moved to Montana since the beginning of the pandemic.

Montana is a western state known for its diverse wildlife terrain, including mountains, prairies and badlands. The state's economy largely depends on industries like tourism, agriculture, ranching, oil, mining and health care.

Billings has an average snowfall of 55 inches per year and the city enjoys 205 sunny days per year. Billings, and south central Montana in general, is one of the warmest areas of Montana.

Based on the findings, Wyoming ranked 2nd overall. According to the study, the region surrounding Wyoming is a good place to retire to in general. The study ranked South Dakota 3rd, Colorado 5th, Idaho 6th, and Montana 8th.

Called Montana's “banana belt” by locals, the Tobacco Valley spans the wet Purcell Mountains to the west and the lofty peaks of Glacier National Park less than an hour to the east. Here Montana boasts the state's mildest weather. It's not tropical, but it is a paradise for lovers of the outdoors and history.

What is the sunniest town in Montana? ›

Bozeman is the sunniest city in Montana, averaging over 300 sunny days per year. Bozeman's average annual precipitation is 16.23 inches. Humidity is low in both summer and winter.

Massachusetts is the best state for retirees based on the quality of life. While the state ranked in the bottom half of the list for affordability, it scored top marks for health care, coming in at second place.

The data suggest Billings and Missoula are leading the way, Billings with 3.9 times more inbound than outbound moves. Missoula actually saw a decrease from 7.1 times more inbound than outbound moves in 2020 to 4 times more inbound moves in 2021.