Helena, Montana – Montana has emerged as one of the fastest-growing state economies in the nation, according to a recent report highlighted by Governor Greg Gianforte, who pointed to strong economic growth, rising wages, tax relief efforts, and increased business activity as signs of the state’s continued momentum.
The governor announced that Montana ranks among the top five states for economic growth since 2021, based on findings from a report released by Visual Capitalist. The study compared all 50 states using real gross domestic product growth between 2021 and 2025.
According to the report, Montana placed fifth nationally, trailing only Texas, New Mexico, Florida, and South Carolina.
Montana recorded real GDP growth of 16.1 percent during the four-year period, significantly exceeding the national average of 10.8 percent. The report noted that business investment, population growth, and energy production helped fuel growth in many of the highest-performing states.
“In Montana, our economy is growing and stronger than ever as we continue to welcome new business investment, strengthen our workforce, and increase access to international markets for our major industries,” Gov. Gianforte said. “By supporting business owners, we’re unleashing good-paying jobs for Montanans, so our kids and grandkids don’t have to leave the state in pursuit of a career.”
Population growth and rising wages contribute to economic gains
Montana has experienced steady growth in recent years. Between 2010 and 2020, the state’s population increased by 10 percent, making it the third-fastest-growing state in the nation during that period.
State officials also pointed to wage growth as another sign of economic strength. Montana currently ranks third nationally for wage growth and is one of only two states where wage increases have outpaced inflation since 2020.
The average annual wage earned by Montana workers reached $60,037 in 2024, according to information released by the governor’s office.
Supporters of the administration’s economic policies say those gains reflect efforts to attract businesses, expand employment opportunities, and create an environment where companies can invest and grow.
Fiscal health and tax relief highlighted
The governor also pointed to improvements in Montana’s fiscal position over the last several years.
According to recent rankings, Montana’s fiscal health rose from 22nd in the nation in 2021 to 8th in 2025.
A major milestone came in 2023 when Montana eliminated its general obligation debt, becoming debt-free. State officials estimate that paying off the debt saved taxpayers approximately $40 million over a two-year period.
Tax reductions have also been a major focus of the administration.
In 2023, Gianforte secured what his office described as the largest tax cut in state history. The package included $500 million in permanent income tax relief, income tax rebates of up to $1,250, and $280 million in property tax relief.
The governor continued those efforts in 2025, approving more than $750 million in permanent income tax cuts benefiting residents across various income levels.
Since taking office, Gianforte’s administration says Montana’s top individual income tax rate has been reduced by nearly 20 percent.
During the 2025 legislative session, state leaders also worked to limit government spending growth to less than 1 percent, a move intended to keep spending from rising faster than inflation.
Montana has also received recognition for entrepreneurship and business development. Last year, the state was ranked the best in the nation for business startups by Entrepreneur Media. A separate study by WalletHub recently identified Montana as one of the top states in America for starting a business.
With strong GDP growth, rising wages, tax reductions, and continued business expansion, state leaders say Montana’s economy remains on a positive path as it continues to compete with some of the nation’s fastest-growing states.
