Question 1

What is Mississippi's state income tax rate for 2025?

Accepted Answer

Mississippi imposes a 4.4% flat income tax on taxable income above a $10,000 exemption for TY2025, enacted by HB 531 (2022) 'Mississippi Tax Freedom Act' and further reduced by HB 1 (2025) 'Build-Up Mississippi Act.' The rate schedule ratchets automatically: 5.0% (2022) → 4.7% (2024) → 4.4% (2025) → 4.0% (2026), targeting full elimination by 2030 subject to statutory revenue triggers.

Question 2

What is Mississippi's standard deduction and personal exemption for 2025?

Accepted Answer

Mississippi's TY2025 standard deduction under Miss. Code Ann. §27-7-17(3) is $2,300 for single filers, $3,400 for HOH, and $4,600 for MFJ, and its personal exemption under §27-7-21 is $6,000 for single, $8,000 HOH, $12,000 MFJ, plus $1,500 per dependent. Combined, an MFJ filer's effective zero-tax income is approximately $26,600 before the 4.4% rate applies.

Question 3

Does Mississippi tax Social Security and retirement income?

Accepted Answer

Mississippi fully exempts Social Security benefits from state income tax. Under Miss. Code Ann. §27-7-15(4)(e), Mississippi also fully exempts all qualified retirement plan distributions from state income tax — including 401(k), 403(b), IRA, and qualified pension distributions — regardless of the taxpayer's age or income level. Mississippi is one of only a small number of states offering blanket retirement-income exemption without an age or AGI condition.

Question 4

Do Mississippi cities or counties charge a local income tax?

Accepted Answer

No. Mississippi does not authorize its municipalities or counties to levy a local income tax. All personal income tax in Mississippi is collected at the state level under Miss. Code Ann. Title 27, Chapter 7.

Question 5

What is Mississippi's income tax rate schedule after 2025?

Accepted Answer

Under HB 1 (2025) 'Build-Up Mississippi Act,' the flat rate is scheduled to decline further: 4.0% for TY2026, 3.5% for TY2027, 3.0% for TY2028, 2.5% for TY2029, and full elimination by TY2030, in each case subject to the revenue-trigger requirement (general fund growth exceeding the prior fiscal year by a statutorily defined percentage) codified at Miss. Code Ann. §27-7-5.

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