“While Democrats push higher taxes and more government spending, Republicans are cutting taxes and making life more affordable for families,” Mason Di Palma, communications director for the Republican State Leadership Committee, said in a statement. “It’s a clear difference in priorities and in results.”

But as GOP leaders have pushed for more tax breaks, liberal tax policy analysts have encouraged state legislatures to increases taxes on wealthy residents to make up for lower federal tax dollars coming in. State tax policy analysts Aidan Davis and Wesley Tharpe wrote for the liberal-leaning Institute on Taxation and Economic Policy that the onus for liberal tax policy initiatives fell on state legislators in the wake of the One Big Beautiful Bill Act.

“In the wake of such federal recklessness, attention is now turning to the states, which face large added costs and significant budget risks due to the new federal law,” Davis and Tharpe wrote. “They now have an enormous opportunity to start getting our country back on track by protecting and raising their own resources to improve the lives of everyday Americans.”

In the context of a political landscape increasingly focused on affordability and cost of living, here’s a look at how some red states are cutting taxes and how some blue states are looking to increase them.

Red state: Utah

Gov. Spencer Cox (R-UT) signed Senate Bill 60 into law this year, cutting the state’s income tax for the sixth year in a row.

“We’ve cut taxes for six straight legislative sessions — totaling $1.5 billion, the largest cumulative reduction of any administration in Utah history — while maintaining strong reserves, advancing key priorities, and ensuring a structurally sound budget,” Cox said in a March statement.

The bill cut both the income tax rate for Utahns and the corporate tax rate to a flat 4.45% rate, down from 4.5%. The tax cut is set to take effect on May 6.

Blue state: California

California voters will voice their opinion on a ballot measure this year about whether to increase taxes on the state’s wealthiest residents. The California Billionaire Tax Act of 2026 will be on the ballot in November 2026 for voters to decide whether to place a onetime 5% tax on Californians with a net worth of over $1 million.

Golden State Democrats have marketed the move as a measure to counteract funding cuts to federal programs in the state. Top labor leaders and national figures such as Sen. Bernie Sanders (I-VT) have backed the move, but Gov. Gavin Newsom (D-CA) has not voiced support.

“Their ads will not be saying, ‘We are billionaires, we want it all, please vote down this referendum,'” Sanders said during a February rally in California. “What they are saying is, ‘If you stand up to us, we are gonna punish you.'”

Rep. Kevin Kiley (I-CA), a former Republican, called the initiative “fundamentally unfair” and said it is causing “many of our state’s leading job creators [who] are leaving preemptively.” The flight of wealthy business leaders from areas with high taxes has been a concern for blue states and cities, particularly in New York City.

Red state: Georgia

In Georgia, Gov. Brian Kemp (R-GA) signed legislation to give single taxpayers a onetime $250 tax rebate, heads of household a $375 rebate, and joint filers a $500 rebate. This is Kemp’s fourth round of state income tax refunds, which have totaled nearly $1.2 billion.

The state legislature also passed a bill through both chambers that would bring the personal income tax down from a flat rate of 5.19% to 3.99% by 2028. In 2026, the rate would be reduced to 4.99%. The bill was sent to Kemp on Friday.

Blue state: Virginia

In Virginia, Democratic legislators introduced a swath of tax increase proposals, ranging from taxes on dog walking to hotel taxes. But the bills never made it to Gov. Abigail Spanberger‘s (D-VA) desk for her signature, dying in the state legislature by the end of the legislative session.

The governor did sign off on a new payroll tax tied to a statewide paid family and medical leave program.

VIRGINIA BUSINESS LEADERS URGE SPANBERGER TO STEER AWAY FROM NEW TAXES IN AFFORDABILITY PUSH

Red state: South Carolina

In South Carolina, Gov. Henry McMaster (R-SC) signed a bill Wednesday aimed at restructuring income taxes in the state and reducing personal income tax rates over time.

The newly signed bill gives taxpayers with an income of up to $30,000 a 1.99% tax rate and gives those who make above $30,000 a 5.21% rate, reduced from the current 6% rate.

Blue state: Washington

Gov. Bob Ferguson (D-WA) signed a new bill into law that establishes a 9.9% tax on residents with an income of over $1 million. Before this move, Washington had no state income tax.

“Adoption of the historic Millionaires’ Tax makes our tax system more fair, and means free meals for K-12 students, the largest tax break in state history for small businesses, eliminating the sales tax for baby diapers, and sending a check to nearly 500,000 working families to make life more affordable,” Ferguson said in a March statement.

What some legislators are saying

In a statement to the Washington Examiner, New York Republican Assembly Leader Ed Ra voiced frustration over his state’s high income taxes in the wake of some Albany Democrats and New York City Mayor Zohran Mamdani pushing for higher income taxes on the highest earners. Ra called Tax Day “practically a holiday for Democrats.”

“Their endless tax-and-spend approach has delivered one of the nation’s worst tax climates — ranked dead last in competitiveness — while driving up the cost of living and accelerating an exodus of residents and businesses from the state,” Ra said. “It’s an unsustainable pattern that produces nothing but bad results.”

But Democratic New York state Sen. Kristen Gonzalez backed Mamdani’s plan to tax the rich in a New York City speech on April 1.

MAMDANI ACKNOWLEDGES ‘TROUBLING’ JOB NUMBERS WHILE HE PUSHES FOR HIGHER TAXES

“Now is the time to stand up to the billionaire class,” Gonzales said. “Now is the time for all of us to fight and win a New York that works for working people. Now is the time to tax the rich.”

The Washington Examiner has reached out to the Democratic Legislative Campaign Committee for comment.