Americans for Tax Reform vice president of state affairs Patrick Gleason addressed the organization’s annual Tax Day Eve press conference in the U.S. Capitol on April 14.

Gleason noted the trend of red states moving to flat income taxes and the elimination of state income taxes. (See ATR’s tax competition map here).

Gleason said:

“So it’s a delight to be here today to discuss latest developments with efforts around the country to reduce flat and even eliminate state income taxes, which has been a dominant state policy trend for the better part of a decade now.

When we gathered here today eight years ago for the Tax Day Eve press conference, the first one following the enactment of the Tax Cuts and Jobs Act: At that time, there were 14 states across the country that either had a zero income tax rate or a flat income tax rate. Fast forward to today, and that number is 25, half the states in the country. Significant progress.

In fact, tomorrow in Columbia, South Carolina, at the statehouse there, there is going to be — I’ll be there for a historic, ceremonial bill signing — for legislation that will move that state from a progressive income tax code with a top rate of 6% down to a flat 1.99% over the course of five years.

South Carolina’s legislative leadership, they deserve a great deal of credit for getting this across the finish line. Not only will remove, they’re not going to 2%, they’re going to 1.99. Not only will this remove the dubious distinction South Carolina currently has as being home to the highest top marginal income tax rate in the southeast, this will give South Carolina in just five years, the lowest flat income tax rate in the country.

That’s a title that currently belongs to Arizona and their 2.5% flat income tax rate. I will note that Arizona Republicans who control the legislature there would like to reduce that rate further, but they’re going to be unable to do so until [Democrat governor] Katie Hobbs leaves the governorship.

What’s more, the bill that Governor McMaster is going to sign tomorrow in South Carolina establishes revenue triggers that could continue phasing South Carolina’s income tax all the way down to zero over time.

And mind you, I would like to point out this is happening in a state, South Carolina, that has had the highest rate of population in-migration, domestic in-migration from other states, as a percentage of the state population. Higher than Texas, higher than Florida.

As they see other states around them emulating them and copying them, the most sincere form of flattery, lawmakers in no-income-tax states are not resting on their laurels, not by a long shot. Rather, they are continuing to find ways to cut taxes and enact other reforms that make their tax and regulatory climates even more attractive than they already are.

I’ll just highlight a few things going on down in Austin. For example, Governor Greg Abbott and Texas lawmakers put on the 2025 ballot last year, a constitutional prohibition on state taxation of capital gains which voters overwhelmingly supported and approved. Earlier that year, last year, Texas lawmakers not only boosted their R&D tax credit, which was scheduled to expire, they boosted it and made it permanent.

Governor Greg Abbott is now running for reelection for a fourth term on a five-part property tax relief package that if enacted, would make Texas the gold standard for property tax limitation.

Florida Governor Ron DeSantis has enacted a number of tax cuts in recent years and now he’s committed to working to eliminate property taxes on primary homeowners.

Then go over, hop over to already no-income-tax Tennessee, where just yesterday they enacted the latest Reins Act in the country. Now over a dozen states have a state-level Reins act, subjecting the most costly state regulations to an up or down vote in the legislature.

And this follows multiple rounds of business tax relief enacted by Governor Bill Lee and Tennessee lawmakers. Point being, while leaders of many no income tax states are realizing that their lack of an income tax is becoming less of an advantage, they’re acting accordingly and making their tax and regulatory climates even more attractive than they already are.

Meanwhile, blue states are doubling down on higher rates, looking to raise income tax rates further on both families and businesses. While that’s unfortunate for individuals and families and employers in those blue states, as Grover likes to say, ‘no state is a total failure. Some just serve as bad examples.‘

And in fact, you know, indeed the latest census migration data shows that Americans are continuing to vote with their feet, leaving high tax blue states in favor of low tax red states.

Though Tax Day is not typically associated with good news, I’m happy to report that on the eve of tax day 2026 state income tax rate reduction and even elimination remains the hottest policy trend in the U.S. Maybe only expansion of school choice can give it a run for its money. But it remains the hottest policy trend in the US and that state tax burdens in much of the country are lower than they’ve ever been.“

See ATR’s constantly updated map of state tax competition here.

Video of the April 14 event can be accessed here and below: