Gov. Greg Gianforte joined Mountain States Policy Center at a press conference at the Montana State Capitol on Tuesday to announce the “Flat. Fair. Montana.” campaign, a statewide initiative promoting a flat individual income tax rate of 4.7 percent. The campaign is a project of MSPC focused on making Montana’s 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,” 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.”
Gianforte was joined at the rotunda podium by MSPC President and CEO Chris Cargill and Jack Baum, a state affairs manager with the Washington, D.C.-based nonprofit Americans for Tax Reform. Cargill cited a recent MSPC survey showing nearly 60 percent of Montanans are concerned about the state’s income tax rate, with a majority saying the 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 pointed to an independent economic analysis estimating that a 4.7 percent flat income tax could increase Montana’s gross state product by approximately $525 million, generate an estimated $286 million in additional wages for Montana workers, and create more than 2,400 jobs. The same analysis projects Montanans would see an increase of nearly $650 in after-tax income compared with the current rate.
Baum framed the proposal within a broader national trend of state-level tax competition. “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,” Baum said. “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, Gianforte has reduced the state’s top individual income tax rate from 6.9 percent to 5.4 percent and cut the number of income tax brackets from seven to two. In 2025, he signed legislation lowering Montana’s income tax rate to 5.65 percent in 2026 and 5.4 percent in 2027, expanding eligibility for the lower 4.7 percent tax bracket, and doubling the state’s earned income tax credit.
Gianforte has made income tax cuts a priority throughout his five-and-a-half-year tenure as governor. In February 2026, he said he wanted the 2027 Legislature to send a flat-tax bill to his desk, and he told Montana Free Press after Tuesday’s press conference that the proposal remains “one of our top priorities.” His office has not yet drafted legislation, he said, but “the language is simple.”
According to MSPC, 17 of the states that impose an income tax currently have a flat rate, including 10 that have adopted one within the last decade. Among Mountain West states, Montana’s 2027 rate of 5.4 percent would remain higher than Idaho’s flat rate of 5.3 percent, Utah’s 4.5 percent, Colorado’s 4.4 percent and Arizona’s 2.5 percent; Wyoming and Nevada have no individual income tax.
During the announcement, Gianforte addressed the proposal’s potential impact on state revenue, citing recent reports showing improvement in Montana’s fiscal standing — from 22nd in the nation in 2021 to 8th today — and noting 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,” Gianforte said. “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 closed by urging Montanans to contact their state legislators ahead of the 2027 session, his final as governor. “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,” Gianforte said. “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 featuring conversations with economists and tax policy experts on how a 4.7 percent flat income tax could strengthen Montana’s economy.
By: BSB News wire