Gov. Greg Gianforte expressed support for a 4.7% flat state income tax at a Capitol press conference. The proposed flat tax aims to replace the higher of Montana’s two rates, potentially boosting the state’s economy. “Montanans know how to spend their money better than the government does,” Gianforte stated, emphasizing individual financial control.
Standing alongside tax reform advocates, Gianforte highlighted his commitment to reducing income taxes during his tenure. In 2026, he aimed for the 2027 Legislature to pass a flat-tax bill, which he describes as straightforward: “Everybody pays the same rate: 4.7%.” Speaker of the House, Rep. Brandon Ler, and Senate Republicans also showed support, signaling legislative backing.
Since taking office, Gianforte has lowered Montana’s top tax rate from 6.9% to 5.4% by 2027. The flat tax would not affect those making less than $65,000 annually as they already pay 4.7%. Montana relies heavily on income and property taxes, lacking a statewide sales tax. A Legislative Fiscal Division report estimated the flat tax could reduce revenues by $140 million over the 2029 biennium.
The flat tax proposal received criticism from Democratic lawmakers and the Montana Budget and Policy Center. Critics argue it benefits the wealthiest, threatening vital public services. Gianforte countered that lower taxes drive economic growth. The press conference was attended by small-government advocates like the Frontier Institute and Americans for Prosperity-Montana, which plans to mobilize support.
Gianforte noted his past success in reducing property taxes, and he pledged to push for the flat income tax to complete his fiscal agenda.
—
Read More Montana News
