Cutting Taxes Across America

The 2027 income tax map highlights progress made in reducing and flattening state income taxes, while providing critical information about states' income tax competitiveness, as well as whether state leaders or legislative proposals could impact the states' future income tax rates. Five states cut income taxes in the second half of the 2025-26 legislative session, building on the efforts of the 12 states that passed such legislation in 2025. South Carolina became the 5th state to adopt "trigger-to-zero" legislation, in which state spending is capped and excess revenue is returned to the people in the form of permanent income tax rate cuts.

Twelve states cut income taxes in 2025, delivering a significantly lower income tax landscape reflected here. All rates shown are as of January 1, 2026, not including any retroactive bills passed after that date.

The 2024 map incorporates a new indicator for whether a state's governor, senate, or house leaders endorsed income tax phase outs.

The 2021 map demonstrates zero income tax states in green, plus states in which leaders are actively seeking to eliminate state income taxes shown in yellow.