Gianforte Aims For Flatter Income Tax Ahead Of 2027

Gov. Greg Gianforte joined the Mountain States Policy Center this week to outline his push for additional tax cuts ahead of the 2027 legislative session, with a renewed focus on moving Montana toward a flat income tax.

Speaking at an event in Helena alongside MSPC founder and president Chris Cargill, Gianforte pointed to a series of tax cuts passed since he took office, along with efforts to reduce state debt, maintain low unemployment, and increase school funding. He said those steps have helped expand opportunity but argued more work remains—particularly in lowering income taxes.

The governor emphasized that despite recent reductions, Montana still has one of the highest income tax rates in the region. A law passed in 2025 will lower the top rate to 5.65% in 2026 and 5.4% in 2027, while expanding eligibility for the 4.7% bracket and increasing the earned income tax credit. Gianforte said those changes bring the state closer to a flat tax but do not go far enough.

He also highlighted the role of restrained state spending, noting recent budgets have remained below the rate of inflation, including a 0.7% increase in the most recent session.

Get our free mobile app

MSPC Vice President Jason Mercier said Montana ranks among the top states nationally in several economic indicators but warned a graduated income tax structure could put it at a competitive disadvantage compared to neighboring states.