Helena, Montana – Greg Gianforte announced earlier this week that Montana now ranks among the top three states in the nation for increases in consumer purchasing power between 2020 and 2024, highlighting wage growth, tax relief, and economic expansion as key drivers behind the improvement.
“With affordability top of mind for all Americans, Montanans continue to be better equipped to handle still-high inflation with their paychecks going further in our strong economy,” Gianforte said. “Thanks to our steady job and wage growth and historic tax cuts, more Montanans can keep more of what they earn to create a prosperous future. In 2027, we must continue to cut taxes to return money back to hardworking taxpayers.”
Wage Growth and Purchasing Power Trends
An analysis by MyPerfectResume found that only a limited number of states saw real gains in buying power after adjusting for inflation and local costs. Those states included Idaho, Florida, Washington, Montana, Wyoming, South Carolina, North Carolina, Tennessee, and Maine.
Nationally, the average worker’s pay rose from roughly $64,000 in 2020 to $75,600 in 2024, an 18 percent nominal increase, according to the Bureau of Labor Statistics. In Montana, wages grew from approximately $48,400 to $60,000 during the same period — a 23.9 percent nominal increase. After accounting for inflation and cost-of-living differences, Montana ranks third in the nation, with real purchasing power rising 2.3 percent since 2020.
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In September 2024, the Montana Department of Labor & Industry reported that Montana was one of only two states where wage growth outpaced inflation since 2020. The report also ranked Montana eighth nationwide for employment growth over the same timeframe.
Workforce Development and Economic Initiatives
To strengthen the state’s workforce and expand opportunity, the governor and the Montana Department of Labor & Industry launched the 406 JOBS initiative last August. The program aims to connect more than 100,000 working-age Montanans who are not currently employed or seeking work with meaningful career paths, including college, military service, entrepreneurship, and skilled trades.
State leaders say workforce development remains critical to sustaining economic growth and ensuring residents benefit from expanding opportunities.
Tax Relief and Household Savings
Officials also credit historic tax reductions with helping households manage costs. Since taking office, Gianforte has reduced the state’s top individual income tax rate from 6.9 percent to 5.65 percent, with a further reduction scheduled to 5.4 percent in 2027.
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Through the Homestead Reduced Rate program, approximately 80 percent of homeowners will see a property tax reduction this year, while about 10 percent will see taxes remain flat. The average savings for homeowners receiving reductions exceeds $500, not including a property tax rebate of up to $400 available to eligible homeowners. Residents have until March 1 to check eligibility and claim the lower rate at homestead.mt.gov.
State officials say the combination of wage growth, workforce initiatives, and tax relief is helping Montanans maintain purchasing power despite persistent inflation pressures. By expanding job opportunities and lowering tax burdens, leaders aim to support long-term prosperity and ensure residents can keep more of what they earn.
