Montana taxpayers are set to receive the largest tax cut in Montana history.
Thanks to the leadership of Governor Greg Gianforte and many other members of the state House of Representatives and Senate, more than $500 million in permanent income tax relief will be delivered to individual taxpayers, families, and small businesses across Montana.
“Montana lawmakers delivered a historic and game changing tax relief package that will provide a tax cut and a rate cut to income taxpayers across the state,” said Grover Norquist, president of Americans for Tax Reform. “Governor Gianforte and many others worked together to create a brighter future for Montana.”
Senator Becky Beard’s Senate Bill 121, enacted by Gov. Gianforte on Monday, March 13, 2023, will reduce Montana’s top individual income tax rate – the rate that is paid by most Montana income taxpayers – from 6.75 percent to 5.9 percent. This rate was 6.9 percent in 2021 when Gov. Gianforte took office.
“Minimizing tax liability on my neighbors here in Montana is a priority I share with the governor,” said Senator Beard. “This will help our economy and put more money in folks’ pockets.”
As people and jobs continue to move out of high tax states and into states that impose low- and no income taxes, a growing movement of state lawmakers across the country and working to reduce and phase out income taxes in their states. Right now, there are 9 states – including Montana’s neighbors Wyoming and South Dakota – that do not tax wage income. Montana’s neighbor North Dakota is one of about a dozen states that are hoping to be the tenth state to appear on the “no income tax” list.
Rather than sitting back and allowing Montana’s tax code to make it a less attractive place to live and raise a family, Gov. Gianforte, Senator Beard, and many others worked tirelessly to deliver pro-growth income tax relief. “Together, our shared conservative values of fiscal responsibility, smaller government, and lower taxes guide us,” said Gov. Gianforte. “Our shared conservative values show us the way, as we work to make Montana an even better place to live, work, and raise a family.”
This historic income tax cut is a win for all Montanans. It will make Montana a much more attractive place to live, invest, do business, and raise a family. And most importantly, it will allow the hardworking people of Montana to keep more of their own money.