Trump says US could “almost completely” eliminate income tax

US President Donald Trump said on November 27 that the United States may “almost completely” eliminate income tax within the next few years, asserting that rising tariff revenue could offset the loss.

However, replacing individual income tax revenue would require more than $2.5 trillion annually — over 10 times the tariff revenue collected last fiscal year, Axios writes. 

Speaking at an event, Trump said: "In the next couple of years, I think we'll substantially be cutting, or maybe cutting out completely, but we'll be cutting income tax." He added: "Could be almost completely cutting it because the money we're taking in is going to be so large."

The comments come as the Supreme Court prepares to rule on the legality of Trump’s tariff policies, and as his own administration maintains tariffs are not intended as a revenue tool. Lawmakers have also made clear that any new tariff income should first go toward reducing the federal deficit.

According to Treasury data, the US collected about $195 billion in tariff revenue in fiscal year 2025 and is projected to take in just over $400 billion in 2026. By comparison, individual income tax revenue reached $2.66 trillion in 2025, with corporate taxes adding another $450 billion.

A Supreme Court ruling on the tariff program is expected soon. If upheld, the decision will shape which of Trump’s proposals, from eliminating income tax to issuing $2,000 tariff dividend checks, expanding farm support, or paying down national debt, takes priority.

By Sabina Mammadli