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Montana Governor Proposes Flat Tax to Boost Competitiveness
Gianforte says state's high income tax rate is hurting its ability to attract residents and businesses
Published on Mar. 5, 2026
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Montana Governor Greg Gianforte is pushing for a flatter state income tax system, arguing that the state's current high tax rates are making it less competitive compared to neighboring states that have been cutting taxes. Gianforte met with the Mountain States Policy Center to outline his vision for tax reform in the 2027 legislative session, saying the state needs to lower income taxes to stay competitive.
Why it matters
Montana currently has the highest income tax rate in the region, which Gianforte says is hurting the state's ability to attract new residents and businesses. A flatter tax system could make Montana more appealing to individuals and companies looking to relocate, boosting the state's economic competitiveness.
The details
Gianforte said that while recent tax reforms have brought Montana closer to a flat tax, the state still lags behind others in the region that have been cutting income tax rates. The MSPC vice president agreed that a flat tax could benefit Montana's future, noting the state ranks highly on many economic indicators and has become an attractive destination for people and businesses.
- Gianforte outlined his tax reform plans during a recent event in Helena, Montana.
- The governor is focused on getting a flatter tax system passed during the 2027 legislative session.
The players
Greg Gianforte
The governor of Montana who is pushing for a flatter state income tax system.
Mountain States Policy Center
A think tank that Gianforte met with to discuss his tax reform plans.
Jason Mercier
The vice president of the Mountain States Policy Center who agrees a flat tax could benefit Montana's future.
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
“nationally, Montana ranks in the top five states in most of the economic indicators that we have looked at”
— Jason Mercier, Vice President, Mountain States Policy Center
What’s next
Gianforte plans to push for a flatter tax system during the 2027 legislative session in Montana.
The takeaway
Montana's high income tax rate is putting the state at a competitive disadvantage, and a flatter tax system could help attract more residents and businesses to the state, boosting its economic future.
