While blue states like California and New York look to impose tax hikes, red states pursue tax cuts
There are eight no-income-tax states, and Missouri is in the race to become the ninth.
Missouri Gov. Mike Kehoe today called for an elimination of the state income tax.
In his State of the State address today Gov. Kehoe said:
“If we are serious about building a foundation for growth, to compete rather than be complacent, then we must begin the work now to phase-out and eliminate Missouri’s individual income tax.
We can do both. We can maintain a balanced budget that supports essential services and pursue a tax policy that improves Missouri’s competitiveness.
Because this will be done deliberately.
It will be done responsibly.
And it will be done sustainably.
The first step is straightforward: gaining approval from Missourians at the ballot box this year.
And that’s why I am calling on the members in this chamber to pass a joint resolution this session placing this proposal before voters.
The question before Missourians will be clear: Should Missouri begin a phased elimination of the individual income tax, with a full repeal within the next five years.“
Americans for Tax Reform president Grover Norquist praised the move:
“Missouri is in the race to become the next no-income-tax state. Reducing the income tax to zero will allow Missouri households to keep more of what they earn. It will allow Missouri families to stay together and not have to look outside the state for jobs. Americans for Tax Reform is excited about Governor Mike Kehoe’s leadership among the states moving to a zero income tax.”
While blue states raise taxes, red states cut taxes.
Twelve states cut income taxes in 2025: Kentucky, Idaho, Utah, Mississippi, Kansas, Georgia, Indiana, West Virginia, Montana, Oklahoma, South Carolina, and Ohio.
Missouri and leaders from 13 other states have endorsed elimination of their respective state income taxes: Arizona, Arkansas, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Utah and West Virginia.
Americans for Tax Reform has published a 50-state tax competition map here.
There are currently eight no-income-tax states: Florida, Texas, Tennessee, Nevada, Wyoming, South Dakota, New Hampshire and Alaska.
Low-tax and no-income-tax states ranked highly in the recently released U-Haul Growth Index. Three of the top four growth states are income tax free: Florida, Texas, and Tennessee.
California ranked dead last — 50th place — for the sixth consecutive year. California has the highest top marginal income tax rate in the nation at 13.3 percent.
See Also: ATR State Tax Map
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