Based on panel data of 31 provinces in mainland China from 2003 to 2017, this paper uses non parametric DEA Malmquist method and two-way fixed effect panel regression model to empirically test the impact mechanism and effect of income tax reduction on regional TFP. The results show that: on the whole, the reduction of income tax can significantly improve the level of TFP in the region. Compared with the reduction of individual income tax, the reduction of enterprise income tax has a greater role in promoting TFP, thus confirming the path of "income tax reduction→human capital accumulation or enterprise technology innovation→TFP improvement"；from a regional perspective, In the central region, the effect of income tax relief on TFP is obvious, but in the eastern and western regions, the effect is not obvious. Therefore, under the background of the increasing downward pressure of the current economy, the conclusions of this paper are of great significance for the current government to carry out the policy of structural tax reduction and fee reduction to stimulate economic vitality.