Montana Governor Greg Gianforte is aiming to lower the state’s income tax rate, part of an ongoing push to give residents more room in their budgets.
In the past, Montanans have faced income tax rates of more than 7%, but recent legislation is gradually bringing that number down.
“So the last session we moved it down to, I think, it's going to go down from 5.9 to 5.4,” explained State Representative Josh Kassmier (R-Fort Benton).
Kassmier introduced Senate Bill 323 in 2025 to update Montana’s income tax laws, with the intent of putting more spending money in the pockets of Montana families.
Gianforte has thrown his support behind the proposal, though it has been revised and debated numerous times in the legislature.
“We'd like to see (it) as soon as possible. It’d be great if we could get that down to a flat tax in the 27 sessions,” Kassmier said.
The current version of the bill proposes a 4.7% income tax rate for individuals making under $21,000 a year, and for married couples earning under $42,000 a year.
However, not everyone is in agreement.
State Representative Mary Caferro (D-Helena) expressed concern: “The goal of the government is to provide good public schools, good public health care and all, and take care of problems like property taxes. Nobody's doing backflips because, oh, we're going to get an income tax break. You know why? Because it doesn't help the majority of Montanans.”
Other opponents argue that lowering the income tax rate could mean less funding for important public services and infrastructure. Despite these concerns, Gianforte remains committed to lowering Montana’s income tax rate to 4.7% by 2027.
