Gianforte Proposes Flat 4.7% Income Tax
Montana's governor laid out budget priorities for the next two years, including a move to a flat income tax rate.
Updated on Nov. 13, 2026 in Budgeting
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Governor Greg Gianforte presented his budget priorities on Thursday, including a proposal to move Montana to a flat 4.7% income tax. The plan is estimated to be similar in size to last session's $16 billion budget.
Why it matters
The proposal sets the framework lawmakers will evaluate as they weigh state spending and tax policy for Montana residents over the next two years. Montana is one of the few states where wage growth is outpacing inflation, a context that shapes how the proposal's priorities are weighed.
The proposal includes a flat 4.7% income tax rate, $300 million for budget stabilization, $44 million for state employee benefits, $25 million for behavioral health systems, and $125 million for roadway investments. Lawmakers have not yet evaluated these figures, and the complete budget document is still pending.
The players
Greg Gianforte
Greg Gianforte is the Governor of Montana, a Republican who previously founded the software company RightNow Technologies.
The details
The Governor's proposal aims to avoid increasing the gas tax while directing funds to stabilization, employee benefits, behavioral health and roads. The Legislature will allocate state funds through House Bill 2, and the governor holds veto power over the budget.
Timeline
November 12, 2026: Governor presents budget priorities in Helena.
Monday, Nov. 16, 2027: Full budget proposal scheduled for release.
January 4, 2027: Montana Legislative Session begins.
Budgeting Context
The proposal would replace Montana's existing graduated income tax with a single 4.7% rate, a structural departure from the current system. Its approach to funding stabilization and roads is weighed against a budget of roughly $16 billion from last session.
A flat income tax would change how much Montana households pay, depending on income level, once lawmakers approve it. Proposed spending on roads and behavioral health could affect local services over the coming years.
The takeaway
Watch the full budget release and legislative debate to understand how a flat tax rate would affect your own tax bill. Compare the governor's priorities with the lawmakers' final version before drawing conclusions about its impact.
What happens next
The full budget proposal is scheduled for release on Monday, Nov. 16, 2027, and the Montana Legislative Session begins January 4, 2027.
Further reading
Explore more on Montana budgeting to see how state spending plans take shape.
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