Why It Matters
South Carolina congresswoman Nancy Mace has introduced a sweeping income tax elimination proposal as part of her campaign for governor, outlining a phased plan that would end the state’s personal income tax over five years. The proposal, dubbed “Five Years to Zero,” would represent one of the most significant tax policy shifts in South Carolina’s modern history if enacted.
For South Carolina residents and businesses, the elimination of the state income tax could substantially alter household budgets and corporate operating costs — with potentially wide-ranging effects on state revenue, public services, and economic development.
What Happened
Mace, a Republican congresswoman representing South Carolina’s 1st Congressional District, formally detailed her “Five Years to Zero” income tax elimination plan on April 3, 2026, as part of her bid for the South Carolina governorship. The proposal calls for a gradual reduction of the state’s personal income tax rate down to zero over a five-year period.
The announcement positions Mace as one of the more aggressive tax-cut candidates in the 2026 South Carolina governor’s race. South Carolina currently levies a top individual income tax rate of 6.2 percent, following a series of incremental reductions passed by the General Assembly in recent years.
Mace’s proposal comes with a notable structural caveat: South Carolina’s 1895 state constitution concentrates significant governing authority in the General Assembly rather than the executive branch. Any governor seeking to implement sweeping tax reforms would require substantial cooperation — and ultimately legislative approval — from state lawmakers.
By the Numbers
6.2% — South Carolina’s current top individual income tax rate, already reduced from a previous high of 7% through prior legislative action.
5 years — The proposed timeline for phasing the state income tax down to zero under Mace’s plan.
9 states — The number of U.S. states that currently have no individual income tax, including Florida, Texas, and Tennessee.
$4+ billion — The approximate annual individual income tax revenue South Carolina collects, funds that currently support education, infrastructure, and public services statewide.
Zoom Out
South Carolina is not alone in weighing income tax elimination. A growing number of Republican-led states have pursued aggressive income tax reduction strategies over the past several years. Mississippi passed legislation in 2022 to phase out its income tax entirely, while Georgia and Iowa have both moved toward flat-tax structures with elimination as a long-term goal.
At the federal level, President Donald Trump has also expressed support for reducing or eliminating the federal income tax, signaling a broader national Republican push toward consumption-based or tariff-funded tax models. Mace’s proposal aligns with that national direction, though implementation would depend entirely on South Carolina’s legislative branch.
South Carolina’s own General Assembly has already been moving incrementally toward lower income tax rates. That legislative momentum could work in favor of a governor pushing elimination — or could prove to be a competing power center resistant to executive-led tax agenda-setting. Voters weighing tax policy may also want to consider related fiscal discussions at the state level, including a proposal by South Carolina Attorney General Alan Wilson calling for a 30-day state gas tax suspension, which reflects growing interest among state officials in providing direct tax relief to residents.
What’s Next
Mace will continue to campaign on the “Five Years to Zero” platform through the 2026 primary and general election cycles. For the proposal to advance beyond the campaign trail, she would first need to win the governorship and then build sufficient support within the South Carolina General Assembly, which controls most levers of fiscal policy in the state.
Other candidates in the South Carolina governor’s race are expected to respond to Mace’s proposal, potentially prompting a broader tax policy debate heading into primary season. Attorney General Alan Wilson, who is also weighing the governor’s race and has highlighted his 15-year anti-corruption record, has not yet released a comparable tax platform.
Legislative leaders in Columbia will also likely weigh in as the proposal gains public attention, given the General Assembly’s constitutionally dominant role in setting South Carolina’s fiscal direction.