Helena, Montana – Montana has climbed to seventh place nationally for fiscal health in 2026, marking a major improvement from its 22nd place ranking in 2021, according to a new report highlighted by Governor Greg Gianforte.
The state also improved from eighth place in 2025, maintaining its position among the 10 highest ranked states for financial health.
Gianforte announced the latest results while emphasizing his administration’s efforts to control government spending, reduce state debt, strengthen financial reserves and provide tax relief to Montana residents.
The rankings come from the 2026 Financial State of the States report released by Truth in Accounting, a nonpartisan organization that examines government financial reporting and evaluates the fiscal condition of all 50 states.
“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.”
The governor said his administration intends to continue following the same financial approach when preparing Montana’s next state budget.
Montana improves financial position for fifth consecutive year
According to Truth in Accounting, Montana’s improved ranking reflects several years of progress in managing its financial obligations.
The organization found that the state has increased the resources available to meet its responsibilities while taking steps to reduce debt.
“For the fifth consecutive year, Montana improved its fiscal condition and increased available resources to meet obligations, primarily through proactive efforts to reduce long-term debt.”
The report also highlighted the state’s use of a special fund to reduce outstanding financial obligations.
It stated that the “state used its Debt and Liability Free Fund to retire outstanding bonds, notes, and other obligations while reducing future general obligation bond issuances.”
One of the major steps occurred in 2023, when Gianforte signed legislation designed to eliminate Montana’s general obligation debt.
According to the governor’s office, the measure made Montana debt-free in that category and saved taxpayers approximately $40 million over two years.
The administration has presented this debt reduction as an important part of its efforts to improve the state’s long-term financial position.
Governor points to major income and property tax reductions
Montana’s improved fiscal ranking has also come during a period of substantial tax changes under Gianforte’s administration.
In 2023, the governor secured what his office described as the largest tax cut in Montana history.
That package included $500 million in permanent income tax relief, income tax rebates of up to $1,250 and $280 million in property tax relief.
Two years later, during the 2025 legislative session, Gianforte supported another round of tax reductions.
Those measures provided more than $750 million in permanent income tax cuts for Montana residents across different income levels.
According to the governor’s office, Montana’s top individual income tax rate has been reduced by nearly 20 percent since Gianforte took office.
However, the governor is seeking additional changes.
During the upcoming legislative session, he plans to push for further income tax reductions and promote a flat individual income tax rate of 4.7 percent.
The proposal would continue his administration’s effort to reduce the amount of income tax paid by Montana residents.
State spending growth held below one percent during 2025 session
Alongside tax reductions, Gianforte has emphasized limiting increases in government spending.
During the 2025 Montana legislative session, the governor and lawmakers held the growth of state government spending below one percent.
The administration described this approach as an effort to prevent government spending from increasing faster than inflation.
State leaders have also worked to strengthen Montana’s ability to respond to future financial challenges.
The governor and legislature have supported investments in the Budget Stabilization Fund, which is intended to provide financial protection during periods of lower revenue or unexpected budget problems.
These reserves are designed to help the state manage possible shortfalls without immediately turning to major spending reductions or other emergency measures.
The administration has linked its improved fiscal position to a combination of lower debt, controlled spending, tax reductions and stronger reserves.
With Montana now ranking seventh nationally, Gianforte is preparing to continue those policies in the next budget cycle.
His priorities include increasing financial reserves, maintaining money for unexpected needs and pursuing further income tax relief.
The latest ranking represents a rise of 15 positions since 2021, while the governor’s proposed 4.7 percent flat income tax remains a goal for the upcoming legislative session rather than an enacted change.
