Minimum wage in Montana, 2014–2027
- Minimum wage in 2026
$10.85 an hour1
In force since Jan 1, 2026.
- On January 1, 2027
$11.20 an hour2
Up $0.35 from today.
- Tipped employees
$10.85 an hour in cash3
Tipped employees get the full minimum wage before tips. Rate shown: Business with gross annual sales over $110,000.
- Overtime
Premium pay after 40 hours a week4
The Montana minimum wage rose from $7.90 in 2014 to $10.85 in 2026; $11.20 from Jan 1, 2027
Line chart of the Montana minimum wage against the federal minimum: $8.65 in 2020, $10.85 in 2026, and $11.20 in 2027. The federal minimum was $5.15 in 2000 and $7.25 in 2026.
What a full-time minimum-wage employee costs in Montana
At $10.85 an hour for 40 hours a week, a new employer with 10 staff pays $22,568 in wages and $2,337 on top (10.4%) in payroll taxes and workers' comp. At the 2027 rate of $11.20 with 2026 payroll tax rates: $25,707 a year. Montana publishes a new-employer unemployment rate per industry; this uses its rate for retail trade (choose yours in the calculator).
- Wages (2,080 paid hours a year)
- $22,568
- Social Security (employer share)6.2%6 of $22,568
- $1,399
- Medicare (employer share)1.45%7 of $22,568
- $327
- Workers' compensation (benchmark index rate)$1.34 per $100 of payroll10
- $302
- Total a year
- $24,905
If you also offer single health coverage, the average employer here pays about $7,406 more a year: a $8,899 average premium11 less $1,493 paid by the employee11.
Frequently asked questions
What is the minimum wage in Montana in 2026?
$10.85 an hour since Jan 1, 2026: $22,568 a year at full time.
What will the minimum wage be in Montana in 2027?
$11.20 an hour from Jan 1, 2027, after $10.85 an hour in 2026: $23,296 for a full-time year.
What is the minimum wage for tipped employees in Montana?
$10.85 an hour before tips: Montana allows no tip credit (Business with gross annual sales over $110,000).
How much does a minimum-wage employee cost an employer in Montana?
About $24,905 a year full time at $10.85: $22,568 of pay plus $2,337 on top, $2,035 in payroll taxes and $302 in workers' comp, before any health coverage.
How has the Montana minimum wage changed since 2000?
The Montana minimum wage rose from $7.90 in 2014 to $10.85 in 2026; $11.20 from Jan 1, 2027.
More minimum wage and employer cost pages
Employer costs in Montana
States with a similar minimum wage
Data and rules for every state
Sources
The 11 pages this page's facts come from, with the day we last checked each one. The numbers beside the figures above link here.
Quotes from the sources
- Montana Department of Labor & Industry erd.dli.mt.gov/_docs/labor-standards/2026-MINIMUM-WAGE-POSTER.pdf“MONTANA'S MINIMUM WAGE (Effective 1/1/2026) $10.85*”
- Montana Department of Labor & Industry erd.dli.mt.gov/labor-standards/wage-and-hour-payment-act/state-minimum-wage“(Effective 1/1/2027: $11.20)”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/state/minimum-wage/tipped“Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified) … State requires employers to pay tipped employees full state minimum wage before tips … Montana … Business with gross annual sales over $110,000 $10.85”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/minimum-wage/state“Montana … Basic Minimum Rate (per hour): $10.85 … Premium Pay After Designated Hours 1 : Weekly - 40 … The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.”
- U.S. Department of Labor, Wage and Hour Division Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968 to 2024“Montana ... ... 1.60 1.80 2.00 2.00 2.00 … Montana 3.35 3.80 4.25(g) 4.25(g) 4.25(g) 4.75(g) 5.15(g) … Montana 4.00 - 5.15(g) 4.00 - 5.15(g) 4.00 - 5.15(g) 4.00 - 5.15(g) 4.00 - 5.15(g) 4.00 - 5.15(g) 4.00 - 5.15 … Montana 4.00-6.15(g) 4.00-6.25(g) 4.00-6.90(g) 4.00-7.25(g) 4.00-7.35(g) 4.00-7.65(g) 4.00-7.80(g) … Montana 7.90(g) 8.05(g) 8.05(g) 8.15(g) 8.30(g) 8.65(g) … Montana 8.65(g) 8.75(g) 9.20(g) 9.95(g) 10.30(g)” “Federal (FLSA) $1.15 & $1.60 $1.30 & $1.60 $1.60 $2.20 & $2.30 $2.90 $3.10 $3.35 … Federal (FLSA) $3.35 $3.80 $4.25 $4.25 $4.25 $4.75 $5.15 … Federal (FLSA) $5.15 $5.15 $5.15 $5.15 $5.15 $5.15 5.15 … Federal (FLSA) 5.15 5.85 6.55 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25” “Montana sets a lower rate for businesses with gross annual sales of $110,000 or less ($4.00 - January 1, 1992-January 1, 2005).”
- Internal Revenue Service IRS Publication 15 (Circular E), Employer's Tax Guide“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total).”
- Social Security Administration ssa.gov/oact/cola/cbb.html“Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
- Internal Revenue Service Topic no. 759, Form 940 – FUTA tax (IRS)“If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.” “FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.”
- Montana Department of Labor & Industry, Unemployment Insurance Division uid.dli.mt.gov/_docs/contributions-bureau/Rate-Explanation.pdf“G - Retail Trade 1.00” “The taxable wage base for 2026 is $47,300 which is 80% of the 2024 average annual wage in Montana” “Administrative Fund Tax (AFT) is 0.18%”
- Oregon Department of Consumer and Business Services oregon.gov/dcbs/reports/cost/Pages/premium-index-rates.aspx“Premium index rate: $1.25-$1.50 … State Index rate Percent of study median … 14 15 Montana 1.34 122%”
- Agency for Healthcare Research and Quality (MEPS-IC) meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2025/ic25_iia_f.pdf“Table II.C.1 Average total single premium (in dollars) per enrolled employee … Division and State Total … Montana 8,899 -- 10,014 8,516 9,251 8,627 9,049 8,826” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … Montana 1,493 -- -- 1,529 1,584 1,187 1,799 1,343”