Montana minimum wage 2026
The minimum wage in Montana is $10.85 an hour in 2026, rising to $11.20 on January 1, 2027. Montana adjusts its wage every year to match consumer prices and allows no tip credit, so tipped workers receive the full rate in cash; a separate $4.00 rate, unchanged in 2026, survives only for very small businesses outside federal law.
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At a glance
| Minimum wage now | $10.85 an hour, since January 1, 2026319 |
|---|---|
| Next change | $11.20 on January 1, 2027 (announced)21 |
| Tipped employees | $10.85, the full minimum wage before tips1710 |
| Overtime | 1.5 times the regular rate after 40 hours a week9 · details |
| Full-time pay | $434 a week, $22,568 a year at 40 hours a week before taxes · calculate for your hours |
| Enforced by | Montana Department of Labor & Industry, Employment Relations Division, Labor Standards Bureau, (406) 444-6543 |
What to know about the Montana minimum wage
Montana raises its minimum wage every year by formula. Under MCA 39-3-409, the Department of Labor and Industry measures the change in the national consumer price index from August to August, applies it to the existing rate and rounds to the nearest 5 cents, with the result due by September 30 and in effect January 1.7 The notice for 2027 applied a 3.40% rise to $10.85, producing $11.22 before rounding and $11.20 after.2 Recent years show the pattern: 2.53% for 2025 and 2.92% for 2026.
In Montana the minimum wage really is the minimum for almost everyone covered. State law allows no tip credit, no meal credit and no training wage, so a server, a new hire and a teenager all receive at least $10.85 an hour in cash in 2026.1 The one exception is a fixed rate, $4.00 in 2026, for businesses outside federal law with $110,000 or less in annual sales, and even there any employee whose work involves moving goods between states must get the full state or federal rate.
The Labor Standards Bureau in the Employment Relations Division of the Department of Labor and Industry handles wage claims and publishes the required wage and hour poster in English and Spanish for each year.1 No Montana city or county may set a higher wage: MCA 7-1-111 denies even self-governing local governments the power to require wages beyond state or federal law.8
All 2026 rates
Nearly every Montana worker is owed the indexed state rate. A business not covered by the federal Fair Labor Standards Act with gross annual sales of $110,000 or less may pay $4.00 an hour in 2026, but not to any employee who is individually covered by federal law, such as someone producing or moving goods across state lines.
| Rate | Applies to | Per hour |
|---|---|---|
| State minimum | Businesses with over $110,000 in annual sales, and any employee individually covered by federal law$11.20 from January 1, 202721 | $10.85319 |
| Small businesses outside federal law | For businesses not covered by the federal Fair Labor Standards Act with gross annual sales of $110,000 or less. Does not apply to employees individually covered by federal law, who must receive the higher state or federal rate. | $4.0017 |
Tipped employees
| Tip credit | Not allowed: tips are on top of the full minimum wage |
|---|---|
| Minimum cash wage | $10.85 an hour1710 |
Montana does not allow a tip credit: tipped employees get the full minimum wage in cash before tips. Employers also cannot count meals toward the wage.
Overtime and salaried staff
| Weekly overtime | After 40 hours in a workweek, at 1.5 times the regular rate9 |
|---|---|
| Daily overtime | None in state law |
| Exempt salary | The federal level, $684 a week ($35,568 a year) |
Time and a half after 40 hours a week (MCA 39-3-405), both for businesses with gross annual sales over $110,000 and for smaller businesses not covered by the federal FLSA.
Overtime at the minimum wage of $10.85 is $16.275 an hour. Salaried managers, administrators and professionals are exempt from overtime only if they meet the duties tests and are paid at least the exempt salary. See overtime rules in every state or calculate pay with overtime.
How the rate changes
Under MCA 39-3-409, the Department of Labor and Industry raises the rate by the change in the Consumer Price Index for All Urban Consumers (CPI-U) from August to August, rounded to the nearest 5 cents. The figure is set by September 30 and takes effect the next January 1, and the state rate can never fall below the federal rate.
Indexed to inflation: yes. Adjusted each January 1 by the August-to-August change in national CPI-U, rounded to the nearest 5 cents.79
Rate history
Who is covered
The state rate applies to most Montana employers. Exempt employees include executive, administrative, professional, computer and outside sales workers, among others. Montana has no youth or training wage.
- The small-business rate, $4.00 in 2026, is not indexed and does not change with the main rate.
Cities and counties
Local governments, including those with self-government powers, may not require private employers to pay a wage or benefit beyond what state or federal law requires (MCA 7-1-111(23)).
Neighboring states
If you live near a state line, the rate that applies is the one where you do the work, not where you live or where the employer is based.
| State | Per hour now |
|---|---|
| South Dakota | $11.85 |
| Idaho | $7.25 |
| North Dakota | $7.25 |
| Wyoming | $7.25 |
Compare every state on the ranked list and map.
Get help or file a claim
If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.
| Agency | Montana Department of Labor & Industry, Employment Relations Division, Labor Standards Bureau |
|---|---|
| Phone | (406) 444-6543 |
| The law | MCA 39-3-409 (Adoption of minimum wage rates -- exception); MCA 39-3-404 (Minimum wage); MCA 7-1-111 (Powers denied to self-governing local governments) |
| Federal | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Sources
- 1 Montana Department of Labor & Industry, Montana's Minimum Wage Checked Oct 9, 2026 · Back to text ↑
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- 7 Montana Legislature, MCA 39-3-409 Checked Oct 9, 2026 · Back to text ↑
- 8 Montana Legislature, MCA 7-1-111 (2025 edition) Checked Oct 9, 2026 · Back to text ↑
- 9 U.S. Department of Labor, Wage and Hour Division, State Minimum Wage Laws Checked Oct 9, 2026 · Back to text ↑
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