Why Missouri Should Eliminate The Income Tax in 2026
Across the country, more states are taking a serious look at what used to seem like a bold idea: eliminating the personal income tax.
It’ not just a talking point anymore. Legislatures in places like Kentucky, Mississippi, and Oklahoma have already passed plans that move their states toward full income tax repeal, and more states are joining the conversation every year.
Supporters say that eliminating the income tax helps families keep more of their money, encourages economic growth, and makes states more competitive for workers and businesses. A growing body of policy research backs that up. Here is a simple, clear digest of what leading analysts are saying, along with how this movement connects to Missouri.
States Are Already Moving Toward Zero Income Tax
Several states have already created step-down mechanisms that phase out their income tax entirely, including Kentucky, Mississippi, and Oklahoma.
It is doable, and it is already happening.
Soon, a majority of states will have either a flat income tax or no personal income tax at all.
Tax reform is the only sensible path in this environment.
States Without Income Taxes Perform Better on Competitiveness
States with no income tax are consistently among the top-ranked states in tax competitiveness.
In this year’s ranking six of the top ten states levy no personal income tax.
Low-Tax States Are Attracting More People
Migration data shows that Americans are moving in large numbers to states with no income tax or very low taxes.
No income tax states like Florida, Texas, and Tennessee have seen major population gains while high tax states continue to lose residents.
People are voting with their feet.
We want Missouri to be a destination like Texas, Tennessee, or Florida, not a place where people flee like New York, California, or Illinois.
Income Taxes Discourage Saving and Investment
Income taxes discourage saving and investment by reducing the reward for long-term financial planning.
Reducing or removing income taxes allows families to make decisions that benefit themselves and their communities. When families can save and invest freely, everyone wins.
Particularly as our economy recovers from Biden-era inflation, Missouri policymakers should do everything they can to encourage saving.
The savings rate of 4.4% is way below the 7.5% rate before the pandemic; more than 41 cents out of every dollar that used to be saved is now spent coping w/ the current cost-of-living crisis: pic.twitter.com/JePU10TNHJ
— E.J. Antoni, Ph.D. (@RealEJAntoni) December 21, 2024
What This Movement Means for Missouri
Missouri is well-positioned to follow the likes of Kentucky, Mississippi, and Oklahoma, in moving toward income tax repeal.
Eliminating the state income tax would support working families, strengthen our economy, and make Missouri more attractive for new businesses and residents.
The time for action is now and the in-state movement is building.
Last year, an income tax elimination bill in Jefferson City made it further than any had ever before in history.
Governor Kehoe said it’s his number one priority for the 2026 legislative session.
The time to strike is now.
.@MikeLKehoe just made it official.
— Liberty Alliance (@LibertyAllUSA) November 17, 2025
Eliminating Missouri’s income tax is his top priority for 2026.
Missouri families deserve to keep more of what they earn. #MOLeg #MOGov https://t.co/0r925AaOru
Click here to add your name to the thousands of Missourians supporting income tax elimination.
Andy Bakker
Executive Director
Liberty Alliance USA