Is it cheaper to live in Bozeman or Phoenix?

Bozeman, MT is cheaper. Its monthly baseline of $1,360 (1BR rent + utilities) runs about 5% below Phoenix, AZ's $1,430, mainly because of rent.

How much more do you need to earn to live in Bozeman than in Phoenix?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Bozeman versus $50,000 in Phoenix.

Which has lower taxes, Bozeman or Phoenix?

Bozeman is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% state sales tax).

Bozeman vs Phoenix Cost of Living 2026

Bozeman

Montana

$1,360/mo est.

Phoenix

Arizona

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,360 in Bozeman, MT versus $1,430 in Phoenix, AZ. Overall, Bozeman, MT is roughly 5% cheaper to live in day-to-day than Phoenix, AZ, driven mainly by rent.

Median household income is $79,903 in Bozeman, MT and $77,041 in Phoenix, AZ — about 4% higher in Bozeman, MT. Montana has a top state income tax rate of 5.65% and no state sales tax; Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.

Bozeman, MT

Phoenix, AZ

Rent

Studio

$1,064

$1,127

+6% in Phoenix, AZ

1 Bedroom

$1,214

$1,253

+3% in Phoenix, AZ

2 Bedroom

$1,528

$1,493

+2% in Bozeman, MT

3 Bedroom

$2,057

$1,771

+14% in Bozeman, MT

Buying a Home

Median Home Value

$614,900

$381,900

+38% in Bozeman, MT

Income

Median Household Income

$79,903

$77,041

+4% in Bozeman, MT

Metro Median Wage (annual)

$54,830

$51,380

+6% in Bozeman, MT

People & Lifestyle

Median Age

28.6 yr

34.8 yr

+6.2 yr in Phoenix, AZ

Homeownership

44.6%

57.1%

+12.5 pp in Phoenix, AZ

Bachelor's+ (25+)

65.1%

32.3%

+32.8 pp in Bozeman, MT

Avg Commute

15.4 min

25.7 min

+10.3 min in Phoenix, AZ

Crime (per 100k/yr)

Violent Crime

451.2

799.6

+77% in Phoenix, AZ

Property Crime

1,808.3

2,338.9

+29% in Phoenix, AZ

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

45.3°F

75.1°F

+29.8°F in Phoenix, AZ

Annual Precipitation

14.0 in

8.2 in

+5.8 in in Bozeman, MT

Gas

Regular Gasoline

$4.27/gal

$5.21/gal

+22% in Phoenix, AZ

Area: Rocky Mountain (PADD 4) vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

—

$2.00

Adult base one-way fare — — vs Valley Metro (2026).

Utilities

Electricity (¢/kWh)

15.1

15.2

+0% in Phoenix, AZ

Natural Gas ($/MCF)

$10.12

$24.74

+144% in Phoenix, AZ

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

about equal

Bread (lb)

$2.04

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$7.36

about equal

Chicken (lb)

$2.01

about equal

Bananas (lb)

$0.70

about equal

Average prices — West vs West (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MT / AZ)

None

5.6%

+5.6 pp in AZ

Income Tax (top rate)

5.65%

2.50%

+3.2 pp in MT

Bozeman vs Phoenix — FAQ

Is it cheaper to live in Bozeman or Phoenix?: Bozeman, MT is cheaper. Its monthly baseline of $1,360 (1BR rent + utilities) runs about 5% below Phoenix, AZ's $1,430, mainly because of rent.
How much more do you need to earn to live in Bozeman than in Phoenix?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Bozeman versus $50,000 in Phoenix.
Which has lower taxes, Bozeman or Phoenix?: Bozeman is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).