Montana Ranks 7th for Fiscal Health
Truth in Accounting's 2026 Financial State of the States report places Montana seventh nationally, up from 22nd in 2021.
Updated on Nov. 5, 2026 in Taxes
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Montana ranked seventh nationally for fiscal health in the 2026 Financial State of the States report from Truth in Accounting, according to an announcement by Governor Gianforte. The state climbed from 22nd in 2021 and 8th in 2025.
Why it matters
For Montana residents, the ranking reflects a shift toward retiring state debt and lowering income taxes, which directly affects state finances and tax obligations. The governor attributes the gains to responsible budgeting and a belief that Montanans can spend their money better than government.
Montana's 2026 ranking is based on the Truth in Accounting 2026 Financial State of the States report, which places the state seventh nationally, up from 22nd in 2021. The state delivered over $750 million in permanent income tax cuts in 2025, while the report's methodology details and the fate of proposed further cuts remain unresolved.
The players
Governor Gianforte
Greg Gianforte is the Republican governor of Montana who announced the state's 2026 fiscal health ranking and has promoted debt payoff and income tax reductions.
Truth in Accounting
Truth in Accounting is a nonprofit organization that publishes the annual Financial State of the States report evaluating the fiscal health of U.S. states.
The details
Montana used its Debt and Liability Free Fund to retire outstanding bonds, notes, and other obligations, and in 2023 Governor Gianforte signed a bill paying off the state's general obligation debt, making Montana debt-free that year. The governor has also cut the top individual income tax rate by nearly 20 percent since taking office.
Timeline
2021: Montana ranked 22nd nationally for fiscal health.
2023: Montana paid off its general obligation debt and delivered $500 million in permanent income tax relief.
2025: Montana ranked 8th and delivered over $750 million in permanent income tax cuts.
2026: Montana ranked 7th in the Financial State of the States report.
Upcoming legislative session: The governor is calling for further income tax reductions.
Market Dynamics
Montana's climb through the Truth in Accounting Financial State of the States rankings, from 22nd in 2021 to 8th in 2025 and 7th in 2026, traces a sustained period of debt retirement and tax reduction. The sequence follows a pattern of states using budget surpluses to pay down obligations and cut income taxes rather than expanding reserves alone.
Montana residents may see changes to their income tax obligations if the proposed flat 4.7 percent rate advances in the upcoming session. The state's debt payoff and prior tax cuts of over $750 million in 2025 already affect how much Montanans owe in state taxes.
The takeaway
Montana's rise in fiscal health rankings shows how retiring state debt and cutting income taxes can be paired with reserve building. Residents tracking their own tax bills should watch the upcoming session for whether the proposed flat rate becomes law.
What happens next
The governor is calling to reduce the state's income tax further in the upcoming legislative session, with a flat income tax of 4.7 percent proposed.
Further reading
For more on how state policy shapes household obligations, explore Taxes coverage across Montana.
More information
Read the full report at Montana remains top 10 for fiscal health.
Source note: This article includes information reported by Kltz.
Live Poll
Do you think state income taxes should be cut even further?
