Montana Minimum Wage 2026
The minimum wage in Montana is $10.85 per hour in 2026, effective January 1, 2026. Montana does not allow a tip credit, so tipped employees earn the full minimum wage plus tips.
What is the minimum wage in Montana in 2026?
The Montana minimum wage is $10.85 per hour as of January 1, 2026, up from $10.55 in 2025. The rate adjusts automatically every January based on the Consumer Price Index, with the Montana Department of Labor and Industry announcing the new figure each fall.
Montana keeps things simple in one respect and unusual in another. There are no city or county minimum wages, so one rate covers the whole state. But Montana is one of the few states with no tip credit at all, which changes the math for anyone hiring restaurant or bar staff.
Tipped minimum wage in Montana
Montana does not allow a tip credit. Servers, bartenders, and other tipped employees must receive the full $10.85 per hour in wages before any tips are counted. Whatever they earn in tips comes on top of that.
One narrow exception exists on the other end of the scale: businesses with gross annual sales of $110,000 or less that fall outside federal FLSA coverage may pay a $4.00 state rate. In practice this applies to very few employers, and any business covered by the FLSA owes at least the federal minimum regardless.
Montana minimum wage history: 2020 to 2026
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2020 | $8.65 | $8.65 |
| 2021 | $8.75 | $8.75 |
| 2022 | $9.20 | $9.20 |
| 2023 | $9.95 | $9.95 |
| 2024 | $10.30 | $10.30 |
| 2025 | $10.55 | $10.55 |
| 2026 | $10.85 | $10.85 |
Upcoming minimum wage increases in Montana
Montana's minimum wage rises nearly every January because it is indexed to the Consumer Price Index. Expect another adjustment on January 1, 2027, announced by the Department of Labor and Industry in the fall of 2026.
The increases track inflation rather than a legislative schedule, so they tend to be modest in low-inflation years and larger when prices climb. Budget for a 2 to 4 percent bump in most years.
Minimum wage by city in Montana
Montana has no local minimum wage ordinances. Billings, Missoula, Bozeman, Great Falls, and every other city and town follow the statewide $10.85 rate.
That said, the legal floor and the market rate are different things in Montana's fastest-growing towns. Employers in Bozeman and Missoula routinely offer well above the minimum to fill hourly roles, so treat $10.85 as a compliance baseline rather than a hiring benchmark.
State rate applies
State rate applies
State rate applies; as Montana's fastest-growing market, going wages run far above the floor
State rate applies
What Montana employers need to know
No tip credit
Pay tipped employees the full $10.85 per hour in cash wages. Tips are the employee's property on top of that and cannot offset any part of the minimum wage.
Small business exception
A business grossing $110,000 or less per year that is not covered by the FLSA may pay $4.00 per hour. Confirm FLSA status carefully before relying on this; most employers do not qualify.
Annual January adjustment
The rate changes every January 1 based on CPI. Update payroll when the Department of Labor and Industry publishes the new figure each fall.
Posting and records
Display the current Montana minimum wage poster and keep standard time and payroll records. There are no local rates to track, so one statewide update per year covers all locations.
How other states compare
See how Montana's $10.85 rate stacks up against other state minimum wages in 2026, or browse the full minimum wage index for all 50 states.
Last verified:
Sources: the US Department of Labor's state minimum wage table and official announcements from the Montana labor department. Minimum wage laws change frequently; confirm current rates with those sources or legal counsel before setting pay.
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