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Montana Governor Proposes Flat Tax to Boost Competitiveness
Gianforte says state must lower income taxes to stay competitive with regional neighbors
Mar. 10, 2026 at 5:35pm
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Montana Governor Greg Gianforte has outlined his vision for tax reform in the state, calling for a flatter tax system to boost competitiveness as residents grapple with high local taxes. Gianforte met with the Mountain States Policy Center (MSPC) and said the state has made progress on tax reform in recent legislative sessions, but still has the highest income tax rate in the region. The MSPC vice president agrees that a flat tax could benefit Montana's future, as the state ranks highly in economic indicators and has become an attractive destination for people.
Why it matters
Montana's high income tax rate compared to neighboring states has raised concerns about the state's competitiveness in attracting businesses and residents. Gianforte's proposal for a flatter tax system aims to address this issue and keep Montana economically attractive.
The details
During a recent event in Helena, Gianforte said "there's more to do, especially when it comes to lowering income taxes, and I'm focused on getting it done". He noted that while past tax reform efforts have brought Montana closer to a flat tax, the state still has the highest income tax rate in the region. Gianforte said "across the country, states are cutting their income tax rates. To stay competitive, we must do the same".
- Gianforte outlined his tax reform vision during a recent event held in Helena, Montana.
- The governor's proposed flat tax changes would be discussed in 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 agrees that a flat tax could benefit Montana's future as the state ranks highly in economic indicators.
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" and that "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
What’s next
The governor's proposed flat tax changes would be discussed in the 2027 legislative session.
The takeaway
Montana's high income tax rate compared to neighboring states has raised concerns about the state's competitiveness in attracting businesses and residents. Governor Gianforte's proposal for a flatter tax system aims to address this issue and keep Montana economically attractive by aligning the state's tax structure more closely with regional competitors.
