Montana’s New Minimum Wage Increase for 2026

Montana is one of 19 states that will increase its minimum wage in 2026, but is it enough?

On January 1, 19 states across the country increased minimum wage, and Montana is among them. Compared to surrounding states, the Treasure State has one of the highest minimum wage rates in the region.

Montana's New Minimum Wage Increase for 2026

According to the Montana Department of Labor and Industry, the minimum wage in the state increased to $10.85 on January 1, up from $10.55 last year. While an increase in the state's minimum wage is good news, it may not be enough for residents to survive.

Get our free mobile app

The minimum wage is subject to a cost-of-living adjustment based on the Consumer Price Index no later than September 30th of each year. Montana's minimum wage is to be the greater of the federal or current Montana minimum wage.

In states like Idaho, Utah, Wyoming, and North Dakota, the Federal minimum wage is $7.25, and it hasn't increased since 2009. Even though $10.85 doesn't seem like much, things could be worse.

Unfortunately, for minimum wage earners in Big Sky Country, the increase to $10.85 doesn't help much as the cost for rent and housing remains grossly inflated. At that rate, you'll need to work at least two jobs just to get by.

At $10.85 per hour, the monthly income is $1,880.67 before taxes. That's $22,568 annually. In Montana, a single person needs to make $22.32/hour and $46,431 annually to support themselves, according to the Living Wage Calculator.

Thankfully, the state of Montana uses the Consumer Price Index to determine minimum wage rates. If the state used the Federal minimum wage like surrounding states, things would be much worse.