Montana Teaching Salaries and Benefits
Montana elementary school teachers earned a median annual salary of $57,530 as of May 2025, according to BLS data, with middle and high school teachers earning more. All Montana public school teachers are enrolled in the state Teachers’ Retirement System (TRS), a defined benefit pension funded through fixed employee and employer contributions. Health insurance coverage and cost-sharing vary by school district rather than through a single statewide plan.
Sponsored School(s)
Montana’s public schools are working to attract and keep more teachers. In the 2022-2023 school year, 661 of the state’s 825 schools reported at least one critical educator shortage area, according to the state Office of Public Instruction, and nearly 31% of first-year teachers turn over within their first year in the classroom. To help close that gap, the state offers a defined benefit pension through the Montana Teachers’ Retirement System (TRS) and, depending on the district, health insurance and other benefits. Teachers moving from another state can also review Montana’s reciprocity agreements for out-of-state candidates before applying.
Learn more about becoming a teacher. Contact schools offering teacher education/certification programs in Montana.
Montana Teacher Salaries by Grade Level
Salaries for Montana teachers vary by grade level, district size, and years of experience. According to BLS data, here’s how median annual wages compare across the state’s core K-12 teaching occupations as of May 2025.
| Occupation | Median Annual Wage | Mean Annual Wage |
|---|---|---|
| Kindergarten Teachers | $47,590 | $56,060 |
| Elementary School Teachers | $57,530 | $58,150 |
| Middle School Teachers | $61,550 | $61,240 |
| High School Teachers | $60,990 | $61,550 |
Montana’s teacher pay has historically ranked near the bottom nationally, and the state doesn’t set a statewide salary schedule. Salary and non-retirement benefits are negotiated district by district, so pay for the same grade level and experience can differ significantly between a small rural district and a larger district like Great Falls or Billings.
Retiring in Montana
Every teacher hired in a Montana public school automatically becomes a member of the Teachers’ Retirement System (TRS), a defined benefit pension plan established in 1937. TRS now administers the pension plan for more than 40,000 active members, retirees, and other benefit recipients statewide.
TRS is a tiered system, and which tier you fall into depends on your hire date. Tier 1 members were hired before July 1, 2013. Tier 2 members were hired on or after July 1, 2013. The tier you’re in affects your average final compensation calculation, your early retirement age, and your annual benefit adjustment.
Contribution Rates
TRS is funded through fixed contributions from both teachers and their employing school districts. Montana teachers contribute 8.15% of their gross salary to TRS, a rate that’s applied to both Tier 1 and Tier 2 members since July 2013. School districts contribute 9.47% of active member wages, a rate in effect since July 2023. Under legislation passed in the 2025 session, that employer rate is scheduled to begin rising by 0.1% each year starting July 1, 2027.
Retirement Eligibility by Tier
Retirement eligibility differs by tier. Tier 1 members can retire with a full benefit at age 60 if vested (5+ years of creditable service), at any age with 25 or more years of creditable service, or at any age as long as their service was reported within 25 fiscal years. Tier 2 members can retire with a full benefit at age 60 if vested, or at age 55 with 30 or more years of creditable service — Tier 2 does not have a Tier 1-style any-age-with-25-years option. Early retirement, which reduces the lifetime monthly benefit, also works differently by tier:
- Tier 1 members can take early retirement at age 50 if vested (5+ years of service)
- Tier 2 members can take early retirement at age 55 if vested (5+ years of service)
Your average final compensation (AFC), used in the benefit formula below, is also tier-dependent. Tier 1 members use their three highest consecutive fiscal years of earned compensation. Tier 2 members use their five highest consecutive fiscal years.
Most retiring TRS members use the standard formula below, which applies to all vested Tier 1 members and to vested Tier 2 members retiring with fewer than 30 years of creditable service:
Years of Creditable Service
multiplied by
Average Final Compensation
multiplied by
1.6667%
For example, a teacher who retires with 20 years of service and an average final compensation of $57,530, roughly the current median elementary teacher salary, would be eligible for about $1,598 in monthly pension payments.
Tier 2 members who retire with 30 or more years of creditable service use a different formula, the Tier 2 Professional Option, which applies a 1.85% multiplier instead of 1.6667% to the same years-of-service-times-AFC calculation.
Annual Benefit Increases
Once you’re retired and have received at least 36 monthly payments, TRS applies a Guaranteed Annual Benefit Adjustment (GABA) each January. Tier 1 retirees receive a fixed 1.5% increase every year. Tier 2 retirees currently receive a 0.5% increase, though that rate can rise in 0.5% increments, up to a maximum of 1.5%, if the system’s funded ratio improves.
You have several payment options for your pension. Some teachers take the full lifetime payment, while others reduce their monthly amount to leave a continuing benefit to a beneficiary after death. For details on your specific options and an estimate of your benefits, contact the Montana Teachers’ Retirement System.
Health Insurance and Other Benefits
Whether you receive health insurance as a Montana teacher depends on the district you work for, since Montana doesn’t run a single statewide teacher health plan. Coverage, premium costs, and the share the district picks up are all negotiated locally, and offerings can vary widely: some smaller, rural districts may provide more limited plans, and benefit levels can differ even between neighboring districts. Check with your specific district to confirm what’s actually offered before assuming coverage matches what’s described here.
Health insurance plans offered to Montana teachers typically cover core medical services, including:
- Preventative Care
- Home Health Care
- Physical Therapy
- Chiropractic Care
- Hospital Visits
- Ambulance Services
Many districts also offer vision, dental, and life insurance alongside medical coverage. Contact your local school district directly to confirm the specific benefits available to you.
Frequently Asked Questions
What is the average teacher salary in Montana?
As of May 2025, median annual wages for Montana teachers range from $47,590 for kindergarten teachers to $61,550 for middle school teachers, according to BLS data. Actual pay depends on grade level, district size, and years of experience, since Montana doesn’t set a statewide salary schedule.
How much do Montana teachers contribute to their pension?
Montana teachers contribute 8.15% of their gross salary to the Teachers’ Retirement System, regardless of whether they’re a Tier 1 or Tier 2 member. School districts contribute 9.47% of active member wages, a rate scheduled to begin rising 0.1% per year starting July 1, 2027.
When can I retire under the Montana Teachers’ Retirement System?
Tier 1 members (hired before July 1, 2013) can retire with a full benefit at age 60 with five years of service, or at any age with 25 or more years of service. Tier 2 members (hired on or after July 1, 2013) can retire with a full benefit at age 60 with five years of service, or at age 55 with 30 or more years of service. Early retirement with a reduced benefit is available at age 50 for Tier 1 members and age 55 for Tier 2 members.
Do all Montana school districts offer health insurance to teachers?
Most Montana school districts offer health insurance, but coverage isn’t guaranteed statewide. Smaller, rural districts may offer more limited plans. Premium costs and covered services depend on the individual district’s negotiated plan.
Does Montana teacher pay vary by district?
Yes. Montana doesn’t have a statewide teacher salary schedule, so pay for the same grade level and experience can vary significantly between districts, with larger districts generally paying more than small rural ones.
- Salaries vary by grade level and district — median pay ranges from $47,590 for kindergarten teachers to $61,550 for middle school teachers as of May 2025, and Montana has no statewide salary schedule.
- TRS retirement benefits are tier-based — your hire date determines your early retirement age, your average final compensation calculation, and your annual benefit increase.
- Contribution rates are fixed and shared — teachers currently contribute 8.15% of salary to TRS, while districts contribute 9.47%.
- Health insurance depends on your district — Montana has no single statewide teacher health plan, so coverage and cost-sharing are negotiated locally.
Find accredited teacher certification programs in Montana, including application requirements and licensing timelines for your certification path.
May 2025 US Bureau of Labor Statistics OEWS wage estimates and 2024-2034 employment projections for Kindergarten and Elementary School Teachers, Middle School Teachers, and High School Teachers, reflect state and national data, not school-specific outcomes. State or district job-growth projections are sourced separately from national BLS outlook data. Conditions vary by school sector, subject area, and district. Data accessed July 2026.
