Montana's minimum wage of $10.85 in 2026 is about average in the United States, and it is significantly higher than than the base federal minimum wage of $7.25 still used in 20 states.
Assuming a standard 40-hour work week, the weekly minimum wage in Montana is $434. For full-time employees working 52 weeks per year, the annual minimum wage in Montana is $22.6K.
Based on $10.85/hr minimum
Based on $10.85/hr minimum
The minimum wage rate of Montana and its neighboring states ranges from $7.25 to $12, with an average of $8.92. Montana, at $10.85, has an above average hourly minimum wage within this group of states. Nevada ($12) has higher hourly rates than Montana. Idaho ($7.25), Utah ($7.25), and Wyoming ($7.25) have lower hourly rates than Montana.
While the general minimum wage is $10.85 per hour in Montana, there are several exceptions where workers may legally receive less than this amount:
A business not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less may pay $4.00 per hour instead of the standard Montana minimum wage.
Persons employed in private homes whose duties consist of casual chores, such as babysitting, mowing lawns, or cleaning sidewalks are exempt from minimum wage requirements.
Persons employed directly by the head of a household to care for dependent children are exempt from minimum wage requirements.
Immediate family members of an employer or persons dependent on an employer for half or more of their support are exempt from minimum wage requirements.
Persons who are not regular employees and voluntarily offer services to a nonprofit organization on a fully or partially reimbursed basis are exempt from minimum wage requirements.
Persons with disabilities engaged in work incidental to training or evaluation programs, or whose earning capacity is so severely impaired that they cannot engage in competitive employment, are exempt from minimum wage requirements.
Apprentices or learners may be exempt from minimum wage requirements for up to the first 30 days of their employment.
Learners under age 18 employed as farm workers may be paid not less than 50% of the minimum wage for up to the first 180 days of employment.
Retired or semi-retired persons performing part‑time incidental work as a condition of their residence on a farm or ranch are exempt from minimum wage requirements.
Certain employees employed in bona fide executive, administrative, or professional capacities, certain computer employees earning a specified wage, or employees in outside sales are exempt from minimum wage requirements.
Montana's cost of living index for 2025 is 95.5, which places it as the 28th most expensive state to live in the United States.
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Assuming a standard 40-hour work week, the real wage in Montana, adjusted for the state’s cost of living index of 95.5, is approximately $11.36 per hour. This means that while the nominal minimum wage is $10.85 per hour, the purchasing power of those earnings is higher due to Montana's lower cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $454.45, translating to an annual purchasing power of $23,631.41 when working 52 weeks per year.
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According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
Montana’s minimum wage is adjusted annually for inflation under state law, which ties the rate to changes in the Consumer Price Index. This indexing system ensures the wage is automatically updated each year to reflect cost-of-living changes without requiring new legislative action.