Montana’s governor is mobilizing public support for a sweeping overhaul of the state’s income tax structure, aiming to replace the current two-tier system with a single flat rate. As reported by montanafreepress.org, Greg Gianforte announced a new education campaign on Tuesday at the Capitol, signaling that the proposal has moved from legislative negotiation to direct voter engagement.
Why It Matters
The initiative represents a significant shift in Montana’s fiscal policy, potentially altering how the state funds public services. With the Legislative Fiscal Division estimating a $140 million revenue loss over the 2029 biennium, the plan raises questions about budget stability and the distribution of tax burdens across income levels.
What Happened
Gianforte joined Jack Baum, state affairs manager for Americans for Tax Reform, and Chris Cargill, president of the Mountain States Policy Center, to launch the “Flat. Fair. Montana.” campaign. The governor argued that reducing the higher of the state’s two current rates would stimulate economic growth. He emphasized that the proposal is a top priority and noted that the language behind the policy is straightforward.
The push follows Gianforte’s February 2026 statement expressing his desire for the 2027 Legislature to send a flat-tax bill to his desk. Senate Republicans announced their support for the concept in July, and House Speaker Brandon Ler (R-Savage) stated that House Republicans are prepared to enact the proposal.
When Gianforte assumed office in 2021, Montana had seven income tax brackets with a top rate of 6.9%. His administration reduced this to two brackets and signed legislation in 2025 scheduling the top bracket to drop from 5.9% to 5.4% by 2027. The proposed flat tax would maintain the current 4.7% rate for lower-income earners, such as single individuals making under $65,000 in 2027.
By the Numbers
4.7% — Proposed flat state income tax rate; also the current rate for Montana’s lower tax bracket.
$140 million — Estimated revenue reduction over the 2029 biennium per Legislative Fiscal Division.
2028 — Proposed start year for the flat tax in fiscal estimates.
6.9% — Top Montana income tax rate when Gianforte took office in 2021.
Fifteen — Number of states with a flat income tax, according to a 2025 Tax Foundation report.
Zoom Out
Montana is one of only five states without a statewide sales tax, relying heavily on income and property taxes for revenue. Nationally, eight states have no state income tax, while fifteen utilize a flat-rate structure. The debate mirrors broader national discussions on tax simplification versus progressive taxation, with proponents arguing that lower rates encourage investment and opponents warning of cuts to essential services.
What’s Next
Critics, including Rep. Mark Thane (D-Missoula) and Sen. Dave Fern (D-Whitefish), have condemned the plan as a tax break for wealthy earners that threatens public services. Rose Bender of the Montana Budget and Policy Center described it as a benefit for the wealthiest 5 percent. Meanwhile, Henry Kriegel, deputy state director of Americans for Prosperity-Montana, stated the organization will support the flat tax with grassroots efforts. The campaign aims to build momentum ahead of the 2027 legislative session.