Despite not having as many residents as some of the other states in the union, Montana, one of the northernmost states in the union, has a lot to offer. The natural scenery in Montana is among of the most breathtaking in the entire globe. Many people who are thinking about relocating to Montana are curious about the cost of living and the amount of taxes deducted from their paychecks. We shall delve more into these subjects in this essay.
Since Montana has a progressive income tax, the amount of taxes you will pay will increase as your income increases. There are seven tax brackets in Montana, with rates ranging from 1% to 6.9%. You will not be required to pay any state income tax if your annual income is less than $3,200. You will pay taxes at the rates outlined in the tax brackets if your income is higher than that.
For instance, you will pay 1% of your income in state income tax if your annual income is between $3,200 and $5,200. If your annual income is between $5,200 and $8,100, you must pay 2%. People who earn more than $18,400 annually fall into the highest tax rate and must pay 6.9% of their income in state income tax.
In comparison to other US states, Montana has a relatively cheap cost of living. People can live comfortably on a lower income because housing costs are also lower than the national average. However, depending on where you reside in Montana, the cost of living might vary greatly.
For instance, it may cost more to live in major cities like Billings or Missoula than in smaller communities. The harsh winters and remote setting of Montana can also have an impact on the expense of living there. Additionally, in some areas of the state, transportation might be a problem.
In Montana, households making between $50,000 and $150,000 annually are considered middle class. Recent figures indicate that Montana’s median household income is roughly $57,000 annually, which indicates that a sizeable chunk of the state’s population is in the middle-class income level. It is crucial to remember that depending on where in Montana you live, the cost of living and what is considered middle class can change.
Several variables, such as your own financial status and the cost of living in your area, will determine whether or not $18 an hour is a reasonable wage. The minimum wage of Montana, which is now fixed at $8.50 per hour, is higher at $18 per hour. However, in some of the state’s more pricey regions, it might not be sufficient to live comfortably.
The state with the highest minimum wage in 2021 will be California, where the rate is $14 per hour. However, the minimum wage in other Californian communities is significantly greater. For instance, the current hourly minimum wage in San Francisco is $16.32. The minimum wages in Massachusetts, Washington, and New York, among other states, are very high.
Finally, Montana is a stunning state with a progressive income tax structure and a relatively low cost of living. But depending on where you live in the state, both the cost of living and what is considered middle class might change. In certain locations of Montana, $18 an hour can be a fair pay, but in others, it might not be enough to live comfortably. It is also important to remember that while though Montana’s minimum wage is higher than the federal minimum wage, it is lower than several other states’ minimum wages.