Montana cut income tax rates, and revenues more than doubled

Chris Cargill

    For years, opponents of income tax relief have warned that lowering tax rates would reduce state revenues and threaten government services.

    Montana’s own tax collection data tells a very different story.

    Over the past decade, individual income tax collections increased from $1.06 billion in Fiscal Year 2014 to $2.24 billion in Fiscal Year 2024. That’s an increase of more than 111 percent.

    Corporate income tax collections grew even faster, rising from $147.6 million to $312.3 million over the same period—an increase of nearly 112 percent.

    In other words, Montana’s two major income tax sources didn’t stagnate after lawmakers began reducing individual income tax rates. They more than doubled.

    Bar chart of individual income tax collections, FY2014–FY2024, showing 111.1% growth from $1.06B to $2.24B on navy background

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