Idaho vs Montana Veterans Comparison: Complete Guide 2025
Compare Idaho and Montana for military retirees. Analyze military retirement tax, cost of living, outdoor recreation, and Northern Rockies opportunities.
Idaho vs Montana Veterans Comparison: Complete Guide 2025
Idaho and Montana represent two of America's most picturesque states with strong outdoor recreation, growing economies, and exceptional quality of life. Both appeal to veterans seeking outdoor living combined with affordable housing. This comprehensive guide compares these Northern Rockies destinations.
Military Retirement Tax Treatment
Idaho: Military Retirement Exempt
Idaho provides complete military retirement exemption:
Idaho Military Retirement Benefits:
- Military pension: 100% exempt from state income tax
- VA disability compensation: Exempt
- State income tax rate: 1%-5.8% (progressive)
- Effective tax on military retirement: 0%
Tax Example - $45,000 military pension + $20,000 other income:
- Military retirement tax: $0
- Other income tax: $950 (at 4.75% effective)
- Total state tax: $950
Montana: Military Retirement Exempt with Extra Benefits
Montana also exempts military retirement:
Montana Military Retirement Benefits:
- Military pension: 100% exempt from state income tax
- VA disability compensation: Exempt
- State income tax rate: 1%-6.9% (progressive)
- Effective tax on military retirement: 0%
Tax Example - $45,000 military pension + $20,000 other income:
- Military retirement tax: $0
- Other income tax: $1,200 (at 6% effective)
- Total state tax: $1,200
Tax Winner: Idaho (Saves $250 annually on other income)
Cost of Living Comparison
Housing Market Overview
Idaho Housing:
- Median home price: $365,000 (rising rapidly)
- Property tax rate: 0.87%
- Boise: $420,000 (expensive, tech boom)
- Coeur d'Alene: $380,000
- Pocatello: $240,000
- Idaho Falls: $260,000
- Property tax on $300,000: $2,610/year
- Rent average: $1,100-$1,400/month
Montana Housing:
- Median home price: $340,000
- Property tax rate: 0.84%
- Missoula: $400,000 (college town, expensive)
- Bozeman: $480,000 (ski town, very expensive)
- Billings: $320,000
- Butte: $240,000
- Property tax on $300,000: $2,520/year
- Rent average: $1,000-$1,300/month
Housing Winner: Montana (Slightly lower median, more affordable options in many areas)
Complete Cost of Living Index
| Category | Idaho | Montana |
|---|---|---|
| Groceries/month | $570 | $580 |
| Utilities/month | $150 | $155 |
| Transportation | 102 | 100 |
| Healthcare | 103 | 101 |
| Overall index | 105 | 104 |
Montana is 1% cheaper than Idaho (very close)
Job Market Analysis
Idaho Employment Opportunities
Strongest Sectors:
- Technology: Boise tech boom (second fastest-growing tech hub)
- Aerospace: Defense contractors
- Healthcare: Growing medical sector
- Manufacturing: Food processing, materials
- Finance: Banking services
Salary Information:
- Average salary: $55,800
- Tech sector: $85,000-$130,000
- Aerospace: $75,000-$105,000
- Healthcare: $65,000-$85,000
- Unemployment rate: 2.8% (lowest in region)
Veterans Employment Rate: 91%
Montana Employment Opportunities
Strongest Sectors:
- Healthcare: Growing medical sector
- Tourism/Hospitality: Significant sector
- Aerospace: Growing defense contractors
- Technology: Missoula emerging tech hub
- Timber/Natural resources: Still significant
Salary Information:
- Average salary: $52,400 (lower than Idaho)
- Healthcare: $60,000-$80,000
- Tech: $75,000-$110,000
- Tourism: $30,000-$50,000
- Unemployment rate: 3.1%
Veterans Employment Rate: 90%
Job Market Winner: Idaho (Higher average salaries, especially tech sector)
VA Healthcare Access
Idaho VA Healthcare Network
Major Medical Centers:
- Boise VA Medical Center
- Idaho Falls VA Medical Center
- Pocatello VA Medical Center
Network Details:
- Primary care providers: 1,100+
- Mental health specialists: 300+
- Average wait time: 20 days
- Community clinics: 28+
- Patient satisfaction: 4.0/5 stars
- Coverage: Good for state size, some rural gaps
Montana VA Healthcare Network
Major Medical Centers:
- VA Montana Health Care System (Missoula)
- Billings VA Medical Center
- Fort Harrison VA Medical Center
Network Details:
- Primary care providers: 800+
- Mental health specialists: 250+
- Average wait time: 22 days
- Community clinics: 20+
- Patient satisfaction: 3.9/5 stars
- Coverage: Limited rural areas
Healthcare Winner: Idaho (More providers, shorter wait times, better coverage)
Outdoor Recreation and Lifestyle
Idaho Recreation
Recreation Profile:
- Mountains: Sawtooth, White Cloud mountains
- Skiing: Sun Valley, Schweitzer Mountain
- Rivers: Salmon River, Snake River
- Lakes: Payette Lake, Coeur d'Alene Lake
- Hiking/Backpacking: Excellent trails
- Fishing: World-class fly fishing
- Year-round outdoor activities
Community:
- Outdoor enthusiast culture
- Growing tech culture (Boise)
- Family-friendly communities
- Less crowded than Montana ski towns
Montana Recreation
Recreation Profile:
- Mountains: Northern Rockies, Beartooth Range
- Skiing: Big Sky (premier resort), other mountains
- Rivers: Yellowstone, Missouri rivers
- Lakes: Flathead Lake (largest freshwater west of Mississippi)
- Hiking: Some of America's best trails
- Fishing: Excellent fly fishing
- National Parks: Glacier, Yellowstone access
Community:
- Outdoor culture very strong
- College towns (Missoula, Bozeman)
- Less developed, more "frontier" feel
- More crowded in popular areas (ski towns)
Recreation Winner: Tie (Both exceptional; Montana has national parks, Idaho has emerging tech culture)
Detailed 10-Year Cost Analysis
Scenario: Military Retiree - $45,000 Pension + $15,000 Other Income
Idaho 10-Year Costs (Pocatello area):
| Category | Annual |
|---|---|
| Housing | $15,600 |
| Property tax | $2,610 |
| Utilities/insurance | $1,800 |
| Groceries | $6,840 |
| Transportation | $4,900 |
| Healthcare | $2,450 |
| State tax | $950 |
| Federal tax | $2,700 |
| Total Annual | $37,850 |
| 10-Year Total | $378,500 |
Montana 10-Year Costs (Billings area):
| Category | Annual |
|---|---|
| Housing | $14,400 |
| Property tax | $2,520 |
| Utilities/insurance | $1,860 |
| Groceries | $6,960 |
| Transportation | $4,800 |
| Healthcare | $2,420 |
| State tax | $1,200 |
| Federal tax | $2,700 |
| Total Annual | $36,860 |
| 10-Year Total | $368,600 |
10-Year Advantage: Montana saves $9,900
Disability Benefits and Support
Idaho Disabled Veteran Benefits
- Property tax exemptions: Available (varies by county)
- Vehicle registration: Tax exemptions available
- Education: Good state education benefits
- Healthcare: Good VA network
- Business incentives: Available for disabled veteran-owned
Montana Disabled Veteran Benefits
- Property tax exemptions: Available (varies by county)
- Vehicle registration: Tax breaks available
- Education: Good state education benefits
- Healthcare: Growing VA network
- Business incentives: Available
Disabled Benefits Winner: Tie (Similar programs, both adequate)
Top Veteran Cities
Idaho Top Cities
Boise
- Cost: High ($420K)
- Jobs: Excellent (tech boom, diverse)
- VA access: Excellent
- Lifestyle: Growing urban, cultural
- Best for: Tech professionals, young professionals
Coeur d'Alene
- Cost: High ($380K)
- Jobs: Moderate (growing, tourism)
- VA access: Good
- Lifestyle: Beautiful lake town, outdoor recreation
- Best for: Outdoor enthusiasts with resources
Pocatello
- Cost: Affordable ($240K)
- Jobs: Moderate (university, healthcare)
- VA access: Good
- Lifestyle: Small city, family-friendly
- Best for: Budget-conscious, university-oriented
Montana Top Cities
Missoula
- Cost: High ($400K)
- Jobs: Growing (tech, education)
- VA access: Excellent
- Lifestyle: College town, arts, culture
- Best for: Culture-focused, education-focused
Bozeman
- Cost: Very High ($480K)
- Jobs: Limited but growing
- VA access: Developing
- Lifestyle: Ski town, outdoor recreation
- Best for: High-earning outdoor enthusiasts
Billings
- Cost: Affordable ($320K)
- Jobs: Good (diverse, growing)
- VA access: Good
- Lifestyle: Practical city, outdoor access
- Best for: Professionals, balance of city and nature
Weather and Seasonal Considerations
Idaho Weather
Winter Considerations:
- Northern Idaho: 100-150 inches snow annually (heavy)
- Southern Idaho: 20-40 inches annually (moderate)
- Temperatures: 15-25°F average in winter
- Snow stability: Good for winter recreation
- Elevation factor: Varies 2,000-7,000 feet
Montana Weather
Winter Considerations:
- Western Montana: 50-100 inches snow annually
- Eastern Montana: 30-60 inches annually
- Temperatures: 10-20°F average in winter
- Snow stability: Excellent for skiing
- Elevation factor: Varies 2,000-10,000+ feet
Weather Winner: Tie (Both cold winters, excellent for outdoor recreation)
Summary Comparison Table
| Factor | Idaho | Montana |
|---|---|---|
| Military retirement tax | 0% | 0% |
| Other income tax | 1%-5.8% | 1%-6.9% |
| Cost of living | Moderate-High | Moderate |
| Housing median | $365,000 | $340,000 |
| Job market | Better | Good |
| Average salary | $55,800 | $52,400 |
| VA healthcare | Better | Good |
| Tech opportunities | Excellent | Growing |
| National parks access | Limited | Excellent |
| Outdoor culture | Very Strong | Very Strong |
Final Verdict
Choose Idaho if:
- You want better job opportunities (tech boom)
- You prefer higher salaries
- You want better VA healthcare
- You like emerging tech culture with mountains
- You seek outdoor recreation plus career growth
Choose Montana if:
- You want 1% lower cost of living
- You prioritize outdoor recreation focus
- You value national parks proximity
- You prefer more "frontier" lifestyle
- You want less development pressure
The Numbers: Montana saves approximately $9,900 over 10 years due to slightly lower costs, though Idaho's job market (especially tech) may offset this for working professionals.
Idaho's rapidly growing tech sector and higher salaries make it attractive for career-focused veterans, while Montana's slightly lower costs and national park access appeal to outdoor-focused retirees.
For working tech professionals, Idaho is superior. For outdoor-focused retirees, Montana offers slightly better value. Both offer exceptional outdoor recreation combined with affordable living by national standards.
Critical Consideration: Idaho's housing market is experiencing rapid inflation due to tech boom. Prices rising faster than Montana. Long-term value may favor Montana as prices stabilize.