Montana Governor Proposes Flat Tax to Boost Competitiveness

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Montana Governor Greg Gianforte is proposing a flat tax system in the state, arguing it will help keep Montana competitive by lowering income tax rates. Gianforte says the state still has the highest income tax rate in the region, and with other states cutting their rates, Montana must do the same to stay competitive and attract new residents and businesses.

Why it matters

Montana has seen strong economic growth in recent years, ranking among the top states nationally on key economic indicators. However, the state's high income tax rate is seen as a potential barrier to continued growth and competitiveness. A flat tax system could provide tax relief to residents and businesses, making Montana more attractive for both.

The details

During a recent event in Helena, Gianforte outlined his vision for tax reform in the 2027 legislative session. He said that while past reforms have brought Montana closer to a flat tax, the state still lags the region in income tax rates. Gianforte argued that to stay competitive, Montana must cut its income tax rates further. The vice president of the Mountain States Policy Center, Jason Mercier, agreed that a flat tax could benefit Montana's future, noting the state's strong economic performance in recent years.

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

What they’re saying

What’s next

The governor's flat tax proposal will be a key focus of the 2027 legislative session in Montana, where lawmakers will debate the details and potential impacts of the plan.