The Tax Foundation says that In the first century of state income taxation, only four states transitioned from a graduated-rate to a single-rate, or flat, individual income tax structure. However, the past four years have brought significant focus on income tax reform and relief, and with that, something of a flat tax revolution. Their recent report talks about this transition as well as showing which states tax income and if they do, how.
Between 2021 and 2025, eight states enacted laws to transition to a flat individual income tax structure while providing income tax relief to taxpayers across the income spectrum. Six of those flat taxes have already been implemented, while two others are set to take effect in the future.
Click here to read the full report at the Tax Foundation.
