Montana Governor Proposes Flat Tax to Boost Competitiveness

Gianforte calls for tax reform to lower income taxes and keep the state competitive with regional neighbors

Published on Feb. 27, 2026

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Montana Governor Greg Gianforte has outlined a proposal for a flatter state income tax system, arguing it would help keep the state competitive by lowering tax rates. Gianforte said the state has the highest income tax rate in the region and needs to cut rates to stay competitive as other states reduce their income taxes. The governor met with the Mountain States Policy Center to discuss the plan, which they believe could benefit Montana's future economic growth.

Why it matters

Montana residents have been grappling with high local and state taxes, and the governor's flat tax proposal aims to provide tax relief while also positioning the state to attract new residents and businesses by having a more competitive tax environment compared to neighboring states.

The details

Governor Gianforte said that while recent tax reforms have brought Montana closer to a flat tax system, the state still has the highest income tax rate in the region. He argued that with states across the country cutting income tax rates, Montana must do the same to stay competitive and attractive to new residents and businesses.

  • Governor Gianforte outlined his flat tax proposal during a recent event held in the state capital of Helena.
  • The governor plans to push for the flat tax reform during the 2027 legislative session.

The players

Greg Gianforte

The governor of Montana who is proposing a flat tax system to boost the state's competitiveness.

Jason Mercier

The vice-president of the Mountain States Policy Center, who believes a flat tax could benefit Montana's future economic growth.

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What they’re saying

“there's more to do, especially when it comes to lowering income taxes, and I'm focused on getting it done”

— Greg Gianforte, Governor of Montana (kmhk.com)

“nationally, Montana ranks in the top five states in most of the economic indicators that we have looked at and the Treasure State has put itself on the map as a place that people want to come to”

— Jason Mercier, Vice-President of Mountain States Policy Center (kmhk.com)

What’s next

Governor Gianforte plans to push for the flat tax reform during the 2027 legislative session.

The takeaway

Montana's governor is seeking to make the state more tax-competitive by proposing a flatter income tax system, which could provide tax relief for residents while also attracting new businesses and residents to the state.