Montana Economy: Agriculture, Tourism, and Energy

Montana is one of the smaller U.S. state economies by GDP — the dollar value of everything a place makes and sells in a year. The Montana economy is built on agriculture, tourism, energy, and a growing set of services and tech jobs in cities like Bozeman, Missoula, and Billings.

This is a plain-English tour. For the national picture, see The State of the U.S. Economy and the Economy hub.

How big is the Montana economy?

For example, recent state GDP for Montana has run around $70 billion, according to the Bureau of Economic Analysis. Population is roughly 1.1 million, per the U.S. Census Bureau. Billings, Missoula, Bozeman, Great Falls, and Helena anchor the main regional economies.

The biggest industries

Montana's industry mix reflects its size, geography, and natural resources. The main pillars are:

• Agriculture and ranching — wheat, barley, beef cattle, and pulses (lentils, chickpeas) are central. Montana is one of the largest U.S. wheat-producing states.
• Tourism and outdoor recreation — Yellowstone and Glacier national parks, plus a long list of ski resorts, fishing rivers, and dude ranches, drive a major hospitality economy.
• Energy and mining — coal in the southeast, oil and gas in the Bakken-adjacent counties, hydroelectric power, and a long history of metals mining (copper, gold, silver, palladium) all matter.
• Healthcare — large hospital systems in Billings, Missoula, and Bozeman are major employers and serve a wide rural geography.
• Higher education and research — the University of Montana in Missoula and Montana State University in Bozeman are anchor employers. Bozeman has developed a small but real photonics and tech cluster.
• Wood products and manufacturing — sawmills, log home builders, and a growing set of small manufacturers operate across the state.

Jobs and wages

Montana labor data is published by the Montana Department of Labor and Industry, with national-level numbers from the Bureau of Labor Statistics. For example, the Montana unemployment rate has typically run below the national average, especially in the fast-growing southwest.

The Montana minimum wage is indexed to inflation and is currently around $10.55 per hour as of 2025, above the federal floor of $7.25.

Taxes in Montana

Montana has a graduated state income tax with relatively low top rates after recent reform.

Montana is one of just a few U.S. states with no statewide sales tax, though some resort communities (such as Whitefish and Big Sky) levy local resort taxes. State tax forms and rules live at the Montana Department of Revenue. You can read more about how sales tax works in our glossary.

Cost of living

Cost of living in Montana varies widely. Bozeman, Missoula, and the Flathead Valley have seen housing costs rise sharply with inbound migration; the rest of the state generally remains affordable. The federal government tracks region-specific Consumer Price Index data through the BLS Mountain-Plains region, and HUD publishes Fair Market Rents for every county at HUD User.

Tourism and the parks

Yellowstone and Glacier national parks together draw millions of visitors a year, and Montana captures a large share of the surrounding hospitality, retail, and outfitter business. Smaller tourism clusters operate around Big Sky, Whitefish, the Beartooth Mountains, and the world-class trout rivers of the southwest.

Bozeman and the new Montana

Bozeman has become one of the fastest-growing small metros in the country. Drawn by Montana State University, photonics and biotech firms, outdoor lifestyle, and remote work, the metro has seen sustained population and wage growth. Housing affordability in Bozeman has become one of the most discussed local economic policy topics in the state.

Agriculture and the high plains

Eastern Montana is dominated by large-scale dryland and irrigated agriculture: wheat, barley, pulses, and cattle. Commodity prices, weather, and federal farm programs shape the regional economy each year. Several rural counties depend heavily on agricultural cycles for both employment and tax revenue. Drought conditions, water rights, and shifting global wheat demand all factor into year-to-year farm income across the region.

Energy and mining

Montana has a long history in metals mining, anchored historically by Butte's "Richest Hill on Earth" copper deposits. Today the Stillwater complex south of Big Timber is the only U.S. producer of platinum and palladium, and the Bakken oil play extends into the eastern part of the state. Coal from the Powder River Basin's Montana side supplies regional power plants, and the state has significant hydroelectric capacity along the Missouri River. Energy policy debates in Helena cover everything from coal exports to small modular reactor research.

Billings and the eastern hub

Billings is the largest city in Montana and serves as a regional hub for healthcare, retail, refining, and energy services across a wide stretch of the northern plains. The metro draws workers and patients from eastern Montana, northern Wyoming, and western North Dakota.

How does the Montana economy fit into the national picture?

Montana is one of the most agriculture-, tourism-, and natural-resource-dependent state economies in the country. Population growth in the southwest is reshaping its labor market, while the rest of the state remains tied to commodity prices and federal land use policy.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and the Montana Department of Revenue for the most current data.