State comparison
Montana vs Colorado: which state is better to live in?
Montana costs a median household about $1,300 a year less in state and local taxes than Colorado, mostly because it has no sales tax.
Montana
Low tax burden · COL index 104
Wins 9 categories
Colorado
Moderate tax burden · COL index 110
Wins 6 categories
Taxes: Montana vs Colorado
Montana has a graduated income tax topping out at 5.9%, which works out to 5.0% on a median income of $74,580, or $3,763 a year. Colorado has a flat 4.4% income tax, which works out to 4.4% on a median income of $74,580, or $3,282 a year. Colorado wins on income tax at 2026 rates.
Property tax is 0.58% of home value a year in Montana and 0.48% in Colorado (Tax Foundation, 2023); on each state's median home that is $2,610 against $2,616, so Colorado has the lower rate.
Montana has no sales tax; combined state and local sales tax averages 7.76% in Colorado.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $6,373 a year in Montana, $7,634 in Colorado. Montana is cheaper on total state and local tax.
Housing and cost of living
Montana's cost of living index is 104 and Colorado's is 110, where 100 is the national average; Montana is about 6% cheaper day to day.
The median home costs $450K in Montana and $545K in Colorado (Zillow, 2024), a $95K gap in Montana's favor. A two-bedroom rents for about $1,450 a month in Montana and $1,850 in Colorado.
Home insurance averages $1,500 a year in Montana and $2,800 in Colorado, so Montana is cheaper to insure.
Safety
Violent crime runs 398 incidents per 100,000 residents in Montana and 453 in Colorado (FBI Crime Data Explorer, 2023); Montana is the safer state by that measure, with a rate 14% lower. Property crime is 2,298 per 100,000 in Montana against 2,859 in Colorado, again favoring Montana.
Health
Life expectancy is 76.5 years in Montana and 78.8 in Colorado (County Health Rankings, 2024), a 2.3-year edge for Colorado. The Commonwealth Fund's 2023 scorecard ranks Montana's health system 30th of 50 and Colorado's 9th, so Colorado scores better on care.
9.2% of Montana residents have no health insurance against 7.4% in Colorado, which favors Colorado. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Montana's K-12 schools 22nd in the country and Colorado's 9th, 13 places apart in Colorado's favor. Neither state runs a school-choice voucher program.
Laws and politics
In the 2024 presidential election Montana went to Trump by 13 points and Colorado went to Harris by 11 points.
Montana has permitless carry and a Giffords gun-law grade of F; Colorado has shall-issue carry permits and a grade of A-, so Colorado regulates guns more tightly and Montana is the friendlier state for gun owners.
Abortion is protected by state law in both states, and marijuana is legal for adults in both as of 2026. The minimum wage is $10.30 an hour in Montana and $14.42 in Colorado.
Climate and risk
Natural disaster risk is moderate in Montana (wildfire, blizzard, drought) and high in Colorado (wildfire, blizzard, tornado), so Montana is the lower-risk state. Annual average air quality index is 28 in Montana and 50 in Colorado (under 50 is good), favoring Montana.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
9
Montana
6
Colorado
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Score For My Profile →Questions people ask
Is Montana or Colorado better to live in?
Montana wins more of the measures that decide a move. Montana on taxes ($6,373 a year for a median household against $7,634); Montana on everyday costs (index 104 against 110); Montana on safety (398 violent crimes per 100,000 against 453); Colorado on schools (ranked 9th against 22nd).
Which is cheaper, Montana or Colorado?
Montana is cheaper day to day: cost of living index 104 against 110. The median home is $450K in Montana and $545K in Colorado (2024). On state and local taxes Montana saves a median household about $1,300 a year.
Does Montana or Colorado have lower taxes?
Montana. A household earning $74,580 pays about $6,373 a year in Montana ($3,763 income tax, $2,610 property tax on the median home and $0 in sales tax) and $7,634 in Colorado ($3,282 income tax, $2,616 property tax on the median home and $1,736 in sales tax), at 2026 rates.
Which is safer, Montana or Colorado?
Montana, on the FBI's 2023 figures. Violent crime is 398 per 100,000 residents in Montana and 453 in Colorado; property crime is 2,298 against 2,859.
Which has better schools, Montana or Colorado?
Colorado. Education Week's 2023 Quality Counts report ranks Montana 22nd of 50 for K-12 and Colorado 9th.
Is Montana or Colorado better for retirees?
Both treat retirement income about the same. Montana taxes Social Security, partly exempts pensions and has no estate or inheritance tax; Colorado taxes Social Security, partly exempts pensions and has no estate or inheritance tax. Property tax on a median home is $2,610 a year in Montana and $2,616 in Colorado.