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Montana Governor Proposes Flat Tax to Boost Competitiveness
Gianforte calls for tax reform to lower income taxes and keep state competitive with regional neighbors
Published on Mar. 8, 2026
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Montana Governor Greg Gianforte has outlined a proposal to move the state towards a flatter income tax system, arguing that it will help keep Montana competitive with neighboring states that have been cutting their own income tax rates. Gianforte met with the Mountain States Policy Center to discuss his vision for tax reform in the upcoming 2027 legislative session, stating that "historic" tax changes in recent years have brought Montana closer to a flat tax but that the state still has the highest income tax rate in the region.
Why it matters
Montana residents have long grappled with high local and state taxes, and Gianforte believes that a flatter tax structure could provide much-needed relief while also boosting the state's economic competitiveness. As more states across the country have been cutting income tax rates, Montana risks falling behind if it does not make similar reforms.
The details
Gianforte said that while past tax reforms have been a good start, "we still have the highest income tax rate in the region" and that "to stay competitive, we must do the same" as neighboring states that are cutting their income tax rates. The vice president of the Mountain States Policy Center, Jason Mercier, also expressed support for a flat tax, stating that it could further strengthen Montana's economic position, as the state already ranks highly on many key economic indicators.
- Governor Gianforte outlined his flat tax proposal during a recent event held in Helena, Montana.
- The governor's proposed tax reforms would be considered 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 economic competitiveness.
Jason Mercier
The vice president of the Mountain States Policy Center, a think tank that supports Gianforte's flat tax proposal.
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 (kmmsam.com)
“nationally, Montana ranks in the top five states in most of the economic indicators that we have looked at" and that "the Treasure State has put itself on the map as a place that people want to come to”
— Jason Mercier, Vice President, Mountain States Policy Center (kmmsam.com)
What’s next
The governor's proposed flat tax reforms will be considered during the 2027 legislative session in Montana.
The takeaway
Montana's high income tax rates have been a burden on residents, and Governor Gianforte believes that moving towards a flatter tax system could provide much-needed relief while also boosting the state's economic competitiveness as neighboring states continue to cut their own income tax rates.
