Montana Ranks 7th in Fiscal Health Under Gianforte’s Leadership

Montana has cracked the top tier of American state finance. The state now ranks 7th in the nation for fiscal health, a steep climb from 22nd place in 2021.

Governor Greg Gianforte announced in Helena that Montana’s fiscal health rose to 7th nationally, looking ahead to the next budget session. The 7th-place position stems from the 2026 Financial State of the States report, recently issued by Truth in Accounting, a non-partisan think tank established in 2022 to promote transparency in government financial reporting. The organization conducted a comprehensive analysis of all 50 states for this year’s report.

For the fifth consecutive year, Montana improved its fiscal condition and increased available resources to meet obligations.

The 2023 Debt-Free Milestone

Montana jumped from 22nd to 7th place nationally in five years. That year, Gov. Greg Gianforte enacted legislation to eliminate the state’s general obligation debt, rendering Montana debt-free and saving Montanans $40 million across two years.

Billions in Tax Relief

Tax relief moved in parallel with the balance sheet cleanup. In the same year the state went debt-free, the governor secured the largest tax cut in state history: $500 million in permanent income tax relief, income tax rebates of up to $1,250 for individual filers, and $280 million in property tax relief delivered directly to Montanans.

In 2025, Gianforte continued the streak, delivering over $750 million in permanent income tax cuts to Montanans at all income levels. Since taking office, he has cut the state’s top individual income tax rate by nearly 20 percent.

How the Ranking Moved

The fiscal ranking has tracked this five-year climb closely. Montana stood at 22nd in 2021, moved to 8th in 2025, and now holds 7th in 2026.

The report notes that the state used its Debt and Liability Free Fund to retire outstanding bonds, notes, and other obligations while simultaneously reducing future general obligation bond issuances.

“Montana continues to rank in the top 10 for fiscal health in the nation thanks to our responsible budgeting and belief that Montanans know how to spend their money better than the government does,” Gov. Gianforte said. “As we look ahead to the next state budget, we will continue to boost our reserves, save for a rainy day, and return money back to the hardworking Montanans who earn it.”

Spending Held Below 1 Percent

During its 2025 session, the Montana State Legislature continued the trend by capping government spending growth at under 1 percent, guaranteeing that state expenditures remain below the inflation rate.

Alongside the debt payoff and historic tax cuts, the governor and legislature invested to stabilize the budget and mitigate against shortfalls through the Budget Stabilization Fund, creating a cushion against future revenue drops.

The 4.7 Percent Flat Tax Proposal

The governor is already setting the stage for the upcoming legislative session. He is calling to reduce the state’s income tax even further and promoting a flat income tax of 4.7 percent, which would replace the current progressive structure with a single rate for all earners regardless of income level.

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