Massachusetts is falling behind other states as lawmakers elsewhere move to permanently cut income tax rates, according to a new warning from the Massachusetts Fiscal Alliance.

The group pointed to a recent Wall Street Journal editorial highlighting states such as Ohio, Georgia, North Carolina, and Nebraska for adopting lasting income tax reductions aimed at attracting workers, retirees, and businesses. The editorial criticized high-tax states like Massachusetts and New York for policies it said accelerate out-migration and economic decline.

“As nine states ring in 2026 with lower income tax rates, Massachusetts continues to move in the opposite direction,” the Massachusetts Fiscal Alliance said in a press release, arguing that Beacon Hill policies have made the state less competitive and less affordable.

Paul Diego Craney, executive director of the organization, said Bay State lawmakers have acknowledged concerns about competitiveness but have failed to act.

“While other states are cutting income taxes to attract workers, retirees, and investment, Massachusetts is busy doing the opposite,” Craney said. “Beacon Hill has at times paid lip service to our declining competitiveness, but its actions tell a very different story.”

Notably, Ohio started 2026 with a flat 2.75 percent income tax rate, down from more than 5 percent a decade ago. Nebraska, Kentucky, Georgia, and other states are also cutting rates or shifting toward flatter tax systems. In total, 14 states will soon have a single-rate income tax, and nine states impose no tax at all on wage income.

Massachusetts, however, implemented a 4 percent surtax on income over $1 million starting in 2023 and continues to advance mandates that critics say increase the cost of living and doing business.

“These states understand a basic truth Beacon Hill refuses to accept: lower marginal tax rates encourage work, reward productivity, and keep people from leaving,” Craney said. “High taxes don’t just punish success. They drive it away.”

The group warned that the consequences are no longer theoretical. Businesses consider tax burdens when deciding where to expand, families weigh taxes when choosing where to live, and retirees on fixed incomes often seek states with lower tax exposure, the organization said.

The Massachusetts Fiscal Alliance also pointed to neighboring New Hampshire, which has no income tax, as an example of how a nearby state is actively promoting itself as as alternative to Massachusetts.

Voters, the group said, may soon have a chance to change course thanks to a potential income tax reduction ballot question. The proposal would lower the state's income tax from 5 percent to 4 percent.

“A successful income tax reduction ballot question would be a clear signal that Massachusetts is ready to rejoin the national conversation on growth and affordability,” Craney said. “If lawmakers won’t follow the successful examples set by other states, voters should lead.”

MassFiscal urged State House leaders to take note of national tax trends and warned that continued inaction could make the Bay State less competitive.

“Other states are planning for growth in 2026,” Craney said. “Massachusetts is planning to stand still, and taxpayers are paying the price.”

A press spokesman for Massachusetts Governor Maura Healey could not be reached for comment on Monday or Tuesday.