Governor Greg Gianforte announced a new push for a 4.7 percent flat income tax in Montana, partnering with the Mountain States Policy Center (MSPC) to launch the “Flat. Fair. Montana.” campaign. The initiative aims to simplify the state’s tax code before the governor’s final legislative session in 2027.
The announcement was made at a press conference at the Montana State Capitol in Helena, as reported by helenair.com. Gianforte was joined by MSPC President and CEO Chris Cargill and Jack Baum of Americans for Tax Reform. The campaign seeks to replace Montana’s current two-bracket system with a single rate applicable to all individual income tax filers.
Campaign Goals and Economic Projections
The Mountain States Policy Center, which owns the project, argues that a flat tax would create a more transparent and competitive fiscal environment. According to independent economic analysis cited by the group, implementing a 4.7 percent rate could boost Montana’s gross state product by $525 million.
The analysis further estimates the change would generate $286 million in additional wages and create over 2,400 new jobs. On an individual level, the proposal is projected to increase after-tax income for Montanans by nearly $650.
Support for tax simplification appears significant among residents. A recent survey conducted by MSPC found that nearly 60 percent of Montanans are concerned about the state’s current income tax rates.
History of Tax Reductions
Gianforte has prioritized tax cuts since taking office, reducing the top individual income tax rate from 6.9 percent to its current projected level of 5.4 percent. The administration also streamlined the tax structure, cutting the number of brackets from seven down to two.
In 2023, Gianforte signed legislation that lowered rates to 5.65 percent in 2024 and set them at 5.4 percent for 2025. That same law expanded eligibility for the lower 4.7 percent tax bracket and doubled the earned income tax credit.
Gianforte Pushes 4.7% Flat Income Tax Ahead of 2027 Legislature
National Context and Competitiveness
Montana’s current tax structure places it at a disadvantage compared to several neighboring states. The projected 2025 rate of 5.4 percent is higher than Idaho’s 5.3 percent flat rate, Utah’s 4.5 percent, Colorado’s 4.4 percent, and Arizona’s 2.5 percent. Wyoming and Nevada do not levy an individual income tax.
Nationally, the trend has shifted toward lower rates. Since 2021, more than two dozen states have reduced their income taxes. Of the states that collect income tax, seventeen now utilize a flat rate, with ten of those adopting the structure within the last decade.
Fiscal Health and Next Steps
Proponents of the plan point to Montana’s improved fiscal standing as evidence that previous tax cuts have not harmed state finances. The state’s fiscal health ranking has risen from 22nd in 2021 to 8th nationally. Additionally, state revenue derived from income taxes has doubled since Gianforte assumed office.
Gianforte noted that the upcoming legislative session will be his last as governor. The MSPC plans to host town hall meetings across Montana in the coming weeks to discuss the proposal further.
Gianforte Launches Flat Tax Campaign With Policy Group, Targets 4.7% Rate for 2027
