Median one-bedroom rent across the cities we track is $953 in Montana versus $889 in New Mexico. Overall, New Mexico runs roughly 7% cheaper on rent than Montana, its main day-to-day cost driver.
Median household income across tracked cities is $71,855 in Montana and $65,604 in New Mexico — about 9% higher in Montana. Montana has a top state income tax rate of 5.65% and no state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
State Taxes
Sales Tax
None
4.875%
+4.9 pp in New Mexico
Income Tax (top rate)
5.65%
5.90%
+0.3 pp in New Mexico
Housing (median across tracked cities)
Median 1BR Rent
$953
$889
+7% in Montana
Median Home Value
$427,400
$266,700
+38% in Montana
Income (median across tracked cities)
Median Household Income
$71,855
$65,604
+9% in Montana
Climate (median across tracked cities)
Avg Annual Temperature
45.9°F
57.2°F
+11.3°F in New Mexico
Montana vs New Mexico — FAQ
- Is it cheaper to live in Montana or New Mexico?
- New Mexico is cheaper on rent — its median one-bedroom of $889 runs about 7% below Montana's $953, based on the cities we track in each state.
- How much more do you need to earn to live in Montana than in New Mexico?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $38,000 a year in Montana versus $36,000 in New Mexico.
- Which has lower taxes, Montana or New Mexico?
- Montana has a top state income tax rate of 5.65% and no state sales tax. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
Housing, income, and climate are medians across the 3/3 cities we track in Montana/New Mexico — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.