Gov. Greg Gianforte stood at the Capitol on Tuesday to announce his backing of a public education campaign aimed at building support for a flat 4.7% state income tax, signaling the proposal will be a centerpiece of his agenda when the Legislature convenes in 2027. The announcement was first reported by montanafreepress.org.
The Proposal
Montana currently operates with two income tax brackets. The proposed flat rate of 4.7% would lower the top bracket, which is already scheduled under prior law to drop from 5.9% to 5.4% by 2027. For single earners with taxable income below roughly $65,000 annually — those already in the lower bracket — the rate would remain unchanged, since 4.7% is already their rate.
Gianforte told Montana Free Press the flat tax is “one of our top priorities,” though his office has not yet drafted legislation. He said in February 2026 that he wants the 2027 Legislature to deliver a flat-tax bill to his desk.
Who’s Behind the Campaign
The Mountain States Policy Center is organizing the effort under the banner “Flat. Fair. Montana.” Chris Cargill of that organization joined Gianforte at the press conference, along with Jack Baum of Americans for Tax Reform. Representatives from the Frontier Institute and Americans for Prosperity-Montana also attended. Henry Kriegel, deputy state director of Americans for Prosperity-Montana, confirmed his organization will back the initiative.
Legislative Support
The proposal has drawn early backing from Republican legislative leaders. Senate Republicans announced support for a flat tax in July. House Speaker Brandon Ler (R-Savage) said Tuesday that he supports the plan and that House Republicans are prepared to move on it when the session begins.
Gianforte’s Tax Record
When Gianforte took office in January 2021, Montana had seven income tax brackets and a top rate of 6.9%. Over the course of his tenure, he reduced the bracket structure to two tiers and signed legislation in 2025 scheduling the top rate to fall to 5.4% by 2027. The proposed flat tax would push that reduction further, to 4.7% across all earners.
Gianforte argued at the press conference that reducing tax burdens encourages economic growth and ultimately strengthens state revenues. Montana does not have a statewide sales tax, making income and property taxes the primary revenue sources for state government.
Fiscal Concerns and Opposition
Montana’s Legislative Fiscal Division estimated in July that a 4.7% flat tax taking effect in 2028 would reduce state revenues by $140 million over the following two-year budget cycle.
Rose Bender of the Montana Budget and Policy Center argued the proposal disproportionately benefits the wealthiest five percent of Montanans. Rep. Mark Thane (D-Missoula) and Sen. Dave Fern (D-Whitefish) issued a joint statement opposing the flat tax, though the source material does not detail their specific objections.
Broader Context
A 2025 Tax Foundation report found that eight states impose no income tax at all, while fifteen have adopted a flat income tax. Proponents of the Montana proposal point to that trend as evidence that flat-rate structures are increasingly common and competitive.
With the 2027 regular session still more than a year away, the “Flat. Fair. Montana.” campaign appears designed to build public and political momentum before legislation is drafted. Republican leaders in both chambers have signaled alignment with the governor, though the $140 million revenue estimate is likely to shape budget negotiations when the session arrives.
The flat-tax push comes as Montana’s broader political landscape heads into a competitive election cycle. Republican Kurt Alme currently holds a double-digit lead in the Montana U.S. Senate race, and GOP legislative majorities are expected to remain intact heading into 2027 — factors that could smooth the path for Gianforte’s tax agenda if the campaign succeeds in generating public support.
