Governor Gianforte Discusses Tax Cut Priorities

Mountain States Policy Center highlights Montana's pathway to a flat income tax

Governor's Office

HELENA, Mont. - Governor Greg Gianforte yesterday joined Mountain States Policy Center (MSPC) for a discussion on advancing his key tax cut priorities ahead of the 2027 legislative session.

"Since taking office, my top priority has been to open the door of greater opportunity to more hardworking Montanans," Gov. Gianforte said. "With that in mind, we've delivered historic tax cuts, paid off the state debt, achieved a record stretch of low unemployment, and secured historic funding for our schools. But there's more to do, especially when it comes to lowering income taxes, and I'm focused on getting it done."

Gov. Gianforte talking with MSPC Founder and President Chris Cargill during an event in Helena

During an event held in Helena, the governor joined MSPC Founder and President Chris Cargill to discuss his priorities for the upcoming legislative session, emphasizing his commitment to moving Montana to a flat income tax.

Outlining his commitment to working with legislators to achieve a flat income tax, Gov. Gianforte noted that despite historic income tax relief enacted in 2021 and 2023, the state still has one of the highest income tax rates in the region.

"The reality is, even after our historic tax cuts, we still have the highest income tax rate in the region," Gov. Gianforte said. "Across the country, states are cutting their income tax rates. To stay competitive, we must do the same."

Last year, the Montana Legislature passed and the governor signed into law a bill to reduce the top income tax rate to 5.65% in 2026 and then 5.4% in 2027, increase the number of Montanans eligible for the lower tax bracket of 4.7%, and double the earned income tax credit for hardworking Montanans. The governor said that reform brought Montana much closer to a flat tax and expressed his desire to continue lowering the rate in the upcoming session.

Highlighting the importance of conservative budgets to deliver income tax reductions, Gov. Gianforte discussed the past legislative sessions of working with lawmakers to keep budget growth well below inflation.

"Our income tax reductions have only been possible because we have enacted a conservative budget, keeping overall state spending below the rate of inflation. This last legislative session we did it again, with state spending only increasing by 0.7%," Gov. Gianforte added.

Before the discussion, MSPC Vice President and Director of Research Jason Mercier spoke to the benefits of a flat income tax and where Montana ranks among neighboring states.

"Nationally, Montana ranks in the top five states in most of the economic indicators that we have looked at. And that's partly the story heading into next legislative session, there's been fantastic work bringing down the income tax rates, regulatory reform, permitting reform - the Treasure State has put itself on the map as a place that people want to come to," Mercier said.

Mercier continued, "But there's still more work to be done. Let's start with the income tax. Fantastic work bringing down those rates but you're still at a graduated rate and that's putting you at a competitive disadvantage when you look at your neighbors. Coming down to a flat rate not only simplifies your code but also gets you to the next step with revenue triggers to continue lowering the rate."

MSPC is a multi-state think tank focused on unleashing prosperity and opportunity throughout the Mountain West and the nation through free markets and limited government.

A video recording of the governor's discussion with MSPC may be viewed here .

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