Although the theoretical power conversion efficiency (PCE) of low‐bandgap Pb–Sn‐alloyed perovskite solar cells (PSCs) is higher than that of its conventional pure Pb counterpart, its device performance currently has been severely restricted by the large open‐circuit voltage (Voc) loss. Herein, it is discovered that the Sn4+‐induced trap states of the perovskite film can be effectively suppressed by introducing excess Sn powder into the precursor solution (FASnI3) to reduce the Sn4+ content. As a result, the average charge carrier lifetime of the perovskite film increases remarkably from 115 to 701 ns due to the suppressed nonradiative recombination, and the energy levels have up‐shifted by about 0.27 eV, rendering a more favorable energy‐level alignment at the interface. Ultimately, the champion PSCs using a low‐bandgap (FASnI3)0.6(MAPbI3)0.4 perovskite film with Sn4+ reduction show a high Voc of 0.843 V corresponding to a Voc loss as low as 0.397 eV and a high fill factor of 80.34%, leading to an impressive PCE of 20.7%, which is one of the few instances of a PCE over 20% for low‐bandgap mixed Pb–Sn PSCs to date.