Montana Governor proposes 4.7% flat income tax

Montana Governor Greg Gianforte has announced support for a public education campaign to implement a flat 4.7% state income tax. The proposal, which Gianforte described as a top priority, aims to simplify the state's tax code and increase economic competitiveness by replacing the current two-bracket system with a single rate.

Since taking office in 2021, Gianforte has worked to reduce the state's income tax burden, consolidating seven brackets into two and lowering the top rate from 6.9% to a scheduled 5.4% by 2027. The proposed 4.7% flat tax would be presented to the 2027 Legislature.

The 'Flat. Fair. Montana.' campaign, organized by the Mountain States Policy Center, utilizes economic modeling suggesting the reform could increase Montana’s gross state product by approximately $525 million and support over 2,400 additional jobs. House Speaker Brandon Ler has expressed support for the initiative, noting that House Republicans are prepared to move forward with the proposal.