State of Montana Newsroom
Montana Ranks in Top States With Highest Purchasing Power
HELENA, Mont. – Governor Greg Gianforte today announced Montana ranks in the top three states in the nation with the largest increases in purchasing power for consumers from 2020 to 2024.
“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,” Gov. 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.”
According to an analysis by MyPerfectResume, the only states where workers saw real gains in buying power after accounting for inflation and local costs included Idaho, Florida, Washington, Montana, Wyoming, South Carolina, Wyoming, South Carolina, North Carolina, Tennessee, and Maine.
The survey revealed that between 2020 and 2024, the average American worker’s pay rose from about $64,000 to $75,600, an 18% nominal increase, according to the Bureau of Labor Statistics (BLS). In Montana, the average wage grew from approximately $48,400 to $60,000, a 23.9% nominal increase, over the same time period.
Utilizing BLS wage data and considering inflation and cost-of-living adjustments, Montana ranks as the third highest state with the real percent change up 2.3% since 2020.
In September 2024, Gov. Gianforte announced the findings of the Montana Department of Labor & Industry (DLI) Labor Day report showing Montana as one of only one of two states in the nation where wage growth has outpaced inflation since 2020 and as eighth in the nation for fastest employment growth since 2020.
To promote career, college, military, and entrepreneurship pathways for Montanans to strengthen the state workforce, the governor and DLI last August launched the 406 JOBS initiative. The framework is designed to support the more than 100,000 working age Montanans that are not employed and not seeking work to connect or reconnect with meaningful work.
The governor has also delivered the largest tax cuts in state history, providing income tax cuts for Montanans at every level, as well as immediate and long-term property tax relief. Since taking office, Gov. Gianforte has reduced the state’s top individual income tax rate from 6.9% to 5.65% with a further reduction to 5.4% in 2027.
Through the Homestead Reduced Rate, 80% of homeowners will see a property tax cut this year, with about 10% seeing property taxes remain flat. The average savings for homeowners who saw a tax cut was more than $500, not including the up to $400 property tax rebate available to eligible homeowners. Montanans have until March 1 to check their status and claim the lower rate at homestead.mt.gov.
Read more about the analysis from MyPerfectResume here.
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