Gianforte Celebrates Largest Income Tax Cut In State History
Delivering on Montanans’ priorities and his promise, Gov. Greg Gianforte on Monday, April 28, signed the largest tax cut in state history, providing Montanans at every income level with a tax cut.
“As leaders elected to serve Montanans who sent us to Helena, we all want the same thing: to open the doors of greater opportunity so more Montanans can thrive, prosper, and achieve the American dream,” Gianforte said. “Today, we’re doing just that. Today, we’re delivering the largest tax cut in Montana’s history – once again.”
On the front steps of the Montana State Capitol, joined by House Speaker Brandon Ler, R-Savage, and members of the 69th Legislature, Gov. Gianforte signed into law House Bill 337, providing an income tax cut to Montanans at every income level.
In 2023, the governor was proud to deliver the largest tax cut in state history, providing income tax cuts for Montanans at every level, as well as immediate and longterm property tax relief. Since taking office, the governor has reduced the state’s top individual income tax rate from 6.9% to 5.9% and reduced the number of income tax brackets from seven to two.
House Bill 337 lowers the income tax rate, cutting it to 5.65% in 2026 and then 5.4% in 2027, increases the number of Montanans eligible for the lower tax bracket of 4.7%, and doubles the earned income tax credit for hardworking Montanans. Taken together, the bill returns over $750 million in permanent tax cuts to Montanans.
“This is a historic day for the people of Montana,” Speaker Ler said. “Standing here on the steps of the Capitol, I’m proud to say we are delivering on the largest income tax cut in the history of the state. This bill is a firm commitment to the conservative principles we all stand for. We said from the beginning that we wanted to build a tax system that was fairer, flatter, and more focused on growth and that’s what we’ve done.”
Celebrating tax relief progress since taking office and urging the need for further reform, the governor highlighted how Montana’s income tax rate remains the highest in the Rocky Mountain West, saying, “The reality is, even after our historic tax cuts in 2021 and 2023, we still have the highest income tax rate in the region and one of the highest in the nation.”
He added, “Across the nation, Republican states are cutting their income tax rates. To stay competitive, we must do the same. Through House Bill 337, we’re much, much closer to a flat tax.”
