--- title: "Montana Minimum Wage 2027: $11.20 From Jan 1 | MCC Solutions" description: "Montana minimum wage 2027: $11.20 an hour from January 1, 2027, up $0.35 from $10.85. No tip credit. Payroll cost examples and official sources." url: "https://mcc-solutionsnj.com/bookkeeping/minimum-wage-montana-2027" --- Free guide · Montana payroll # Montana minimum wage for 2027: $11.20 The new Montana rate and its date, the no-tip-credit rule, the other rates the state sets and a worked payroll example at Montana's own numbers, from the state's official pages. [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) **Short answer.** Montana DLI notice, October 7, 2026: the minimum wage increases to $11.20 per hour effective January 1, 2027. $11.20 Montana minimum wage from January 1, 2027 (+$0.35, 3.2%) ## Montana minimum wage at a glance 2027 rate $11.20 from January 1, 2027 2026 rate $10.85 effective January 1, 2026 (Montana DLI). Change +$0.35 an hour (3.2%) Tipped employees No tip credit: full minimum before tips Local rates Not confirmed on a state page ## Montana tipped employees in 2027 Montana requires the full state minimum before tips (US DOL tipped table). Hiring in another state? [Employer registration in Montana, done for you](/bookkeeping/out-of-state-employer-registration), or [a free bookkeeping health check](/bookkeeping/health-check). ## Other Montana rates | Who | 2026 | 2027 | Where it's from | | --- | --- | --- | --- | | Businesses not covered by the FLSA with gross annual sales of $110,000 or less | $4.00 | Not stated | US DOL table. The 2027 notice doesn't restate this rate. | ## What the Montana change costs: an example Each row compares a pay rate with the Montana 2027 floor. Weekly cost is the raise times hours, with overtime at time and a half; the last column runs from January 1, 2027 to December 31, 2027 (52.14 weeks). Employer taxes aren't included. | Employee | Rate now | Hours | Raise | Weekly | Rest of 2027 | | --- | --- | --- | --- | --- | --- | | At the 2026 minimum | $10.85 | 40 | +$0.35 | $14.00 | $729.96 | | Between the two rates | $11.03 | 30 | +$0.17 | $5.10 | $265.91 | | Full time plus 5 hours overtime | $10.85 | 45 | +$0.35 | $16.63 | $867.09 | | Already above 2027 | $11.70 | 40 | None | $0.00 | $0.00 | Run your own staff list in the [payroll change calculator set to Montana](/bookkeeping/minimum-wage-payroll-change-calculator?state=mt). ## Updating Montana payroll - Before January 1, 2027, list everyone paid under $11.20 an hour, including part-timers and seasonal staff. - Decide which Montana rate applies to each person: businesses not covered by the flsa with gross annual sales of $110,000 or less. - Change the rates in payroll with an effective date of January 1, 2027, and split any pay period that crosses it. - Tipped staff get the full $11.20 as wages; tips can't be counted toward it in Montana. - Replace the Montana minimum wage poster with the 2027 version from the state labor department. **Not stated on the Montana pages we checked:** some tier rates for 2027. ## Official Montana sources - [Montana DLI: October 7, 2026 notice to Montana employers (2027 minimum wage)](https://erd.dli.mt.gov/labor-standards/wage-and-hour-payment-act/MW-Determination-Letter1.pdf) - [Montana DLI: Montana's Minimum Wage](https://erd.dli.mt.gov/labor-standards/wage-and-hour-payment-act/state-minimum-wage) - [U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026)](https://www.dol.gov/agencies/whd/minimum-wage/state) - [U.S. Department of Labor: Minimum Wages for Tipped Employees (revised July 1, 2026)](https://www.dol.gov/agencies/whd/state/minimum-wage/tipped) General information, not legal advice, checked November 2026 against the official Montana pages above. A state can change a rate after we check, cities and counties can set higher rates, and exemptions depend on the job and the employer. Before you change payroll, confirm the rate on the state labor department's site or with your payroll provider or employment attorney. MCC Solutions isn't affiliated with any government agency. ## Montana 2027 minimum wage questions **What is the Montana minimum wage in 2027?** $11.20 an hour from January 1, 2027, up from $10.85. Montana DLI notice, October 7, 2026: the minimum wage increases to $11.20 per hour effective January 1, 2027. **Can Montana employers count tips toward the minimum wage?** No. Montana requires the full state minimum before tips (US DOL tipped table). Tipped staff get the full $11.20 in wages from January 1, 2027, and their tips are on top. **Is there a different Montana rate for businesses not covered by the FLSA with gross annual sales of $110,000 or less?** Yes: the 2027 figure isn't stated on the page we checked ($4.00 in 2026). Source: US DOL table. The 2027 notice doesn't restate this rate. It applies only to workers who fit that description; everyone else gets $11.20. **How much more does a full-time Montana minimum wage worker cost each week in 2027?** $0.35 an hour more, so $14.00 for a 40-hour week before employer taxes, or about $729.96 over the rest of 2027. Overtime hours add the raise at time and a half. Compare every state: [minimum wage by state 2027](/bookkeeping/minimum-wage-by-state-2027) · [Minnesota 2027](/bookkeeping/minimum-wage-minnesota-2027) · [Nebraska 2027](/bookkeeping/minimum-wage-nebraska-2027) Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Want payroll handled for you? [See bookkeeping services](/bookkeeping/)[Call (908) 444-6373](tel:+19084446373)