Governor Gianforte Joins Mountain States Policy Center To Promote Flat Tax

Announces Flat. Fair. Montana. Initiative

Governor's Office

HELENA, Mont. - Governor Greg Gianforte today joined Mountain States Policy Center (MSPC) to announce the Flat. Fair. Montana. campaign, a statewide initiative to promote a flat income tax rate of 4.7 percent. Flat. Fair. Montana. is a project of MSPC, focused on making Montana's individual income tax system simpler, more transparent, and more competitive.

"We're here today because we believe in a simple truth: Montanans know how to spend their money better than the government does," Gov. Gianforte said. "Despite our past conservative reforms, Montana still has one of the highest income tax rates in the Rocky Mountain West. We must get Montana to a flat income tax to create more jobs, more opportunity, and more prosperity for Montana families."

Gov. Gianforte announcing the MSPC Flat. Fair. Montana. initiative during an event held at the Montana State Capitol

During a press conference held at the Montana State Capitol, the governor joined MSPC President and CEO Chris Cargill and Jack Baum of Americans for Tax Reform to announce the campaign and highlight the economic benefits of a flat income tax for Montana.

"Nearly 60 percent of Montanans in a recent survey we just completed at Mountain States Policy Center said that they were concerned about the state's income tax rate, a majority says that the income tax rate is too high. So today, we believe the next most logical step is to move Montana to a flat income tax rate of 4.7 percent," Cargill said.

Cargill stated that, according to an independent economic analysis, moving to a 4.7 percent flat income tax could increase Montana's gross state product by approximately $525 million, while generating an estimated $286 million in additional wages for Montana workers and over 2,400 jobs. The analysis also estimates Montanans would see an increase of nearly $650 in after-tax income compared with the current rate.

"Across the country there is a race - states are competing for families, for workers, for small businesses, investment, and jobs. And increasingly, they are competing on taxes. Over the last couple of years, we've seen the most significant waves of state-level tax reform ever. Since 2021, over two dozen states have reduced their income tax rate," Jack Baum of Americans for Tax Reform said.

Baum continued, "The competition is moving toward lower, flatter, and simpler taxes and states that stand still risk falling behind. Governor Gianforte and lawmakers have proven that tax reform can be done. They've cut rates, simplified the tax code, and allowed Montanans to keep more of their hard-earned money. Now it's time to finish the job with one flat, fair rate."

Since taking office, Gov. Gianforte has reduced the state's top individual income tax rate from 6.9 percent to 5.4 percent and reduced the number of income tax brackets from seven to two. In 2025, the governor signed into law a bill that lowered Montana's income tax rate to 5.65 percent in 2026 and then 5.4 percent in 2027, increased the number of Montanans eligible for the lower tax bracket of 4.7 percent, and doubled the earned income tax credit.

When advocating for income tax cuts in the last legislative session, the governor urged the need for further reform and indicated his priority to achieve a flax tax. In February, Gov. Gianforte joined MSPC emphasizing his commitment to moving Montana to a flat income tax and outlining his priorities for the 2027 legislative session.

According to MSPC, of the states that impose an income tax, seventeen have a flat income tax rate, ten of which have moved to a flat rate within the last decade. In the mountain west, Montana's 2027 rate of 5.4 percent is higher in comparison to Idaho's flat rate of 5.3 percent, Utah at 4.5 percent, Colorado at 4.4 percent, and Arizona at 2.5 percent. Wyoming and Nevada have no individual income tax.

During the announcement, Gov. Gianforte addressed the proposal's impact to state revenue and pointed to recent reports that show the strength of Montana's economy, noting Montana's fiscal health has improved from ranking 22nd in the nation in 2021 to 8th and that state revenue from income taxes has doubled since he took office.

"Let's admit it, there is just no way to tax your way to prosperity. Only lower taxes and common-sense budgeting can do that. We've proven we can manage our budget and allow Montanans to keep more of their hard-earned money. Now it's time to deliver a flat, fair tax for Montana," the governor added.

Gov. Gianforte concluded, "While we are a few months away from the next, and my final, legislative session, I encourage Montanans to call their legislators to let them know how important this relief is. Together, we can cut the rate, lower taxes, and continue making Montana the best place to live, work, and raise a family."

In the coming weeks, MSPC plans to host a series of town hall meetings across the state to engage with Montanans and feature conversations with economists and tax policy experts discussing how a 4.7 percent flat income tax can help build a stronger economy. Learn more at flatfairmontana.com.

A video recording of the announcement can be viewed here.

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