Yes, Mississippi does have a state income tax, but the rate is falling and is scheduled to disappear entirely. For the 2026 tax year, income above $10,000 is taxed at a flat 4 percent, and the first $10,000 of taxable income is not taxed at all. Recently signed legislation continues cutting the rate until it reaches zero.
The Current Rate and the Phase-Out
Mississippi used to have graduated brackets. The Mississippi Tax Freedom Act of 2022 replaced them with a single flat rate and made the first $10,000 of taxable income tax-free starting in 2023.1Mississippi Legislature. HB 531 (As Sent to Governor) – 2022 Regular Session The rate on income above that threshold has been stepping down each year since.
In March 2025, Governor Tate Reeves signed House Bill 1, which accelerates the decline and commits the state to full elimination of the individual income tax. Under the new law, the rate drops to 3 percent by 2030 and keeps falling until it reaches zero.2Office of Governor Tate Reeves. Gov. Reeves Signs Historic Legislation Eliminating Mississippi’s Individual Income Tax For 2026, the rate on taxable income over $10,000 is 4 percent.3Mississippi Legislature. HB 1 – 2025 Regular Session
How the Tax Is Calculated
The 4 percent applies to taxable income, not gross income. Before the rate hits, you subtract a personal exemption and either the standard deduction or itemized deductions.
Personal exemptions by filing status:
- Single: $6,000
- Married filing jointly or combined: $12,000
- Married filing separately: $6,000
- Head of family: $8,000, and at least one dependent is required
Each dependent other than yourself or your spouse adds another $1,500. You also get an extra $1,500 if you or your spouse are 65 or older, and another $1,500 if either of you is blind.4Mississippi Department of Revenue. General Information
Standard deductions by filing status:
- Single: $2,300
- Married filing jointly or combined: $4,600
- Married filing separately: $2,300
- Head of family: $3,400
You can itemize instead if qualifying expenses such as mortgage interest, medical costs, or charitable contributions add up to more than the standard amount.4Mississippi Department of Revenue. General Information
Here’s how the math works. A single filer with $50,000 in gross income subtracts a $6,000 personal exemption and a $2,300 standard deduction, leaving $41,700 in taxable income. The first $10,000 is tax-free. The remaining $31,700 is taxed at 4 percent, producing a state tax bill of $1,268.
Income Mississippi Doesn’t Tax
Several categories of income are exempt from Mississippi tax, which is one reason the state is considered friendly for retirees.
- Social Security benefits are fully exempt, even if some of the benefit is taxable on your federal return.
- Distributions from qualified retirement plans, including 401(k) accounts, traditional IRAs, employer pensions, and government retirement plans, are generally not taxed as long as you’ve met the plan’s retirement requirements.
- Railroad Retirement benefits, Veterans’ Administration payments, workers’ compensation, and public welfare assistance are excluded.
Two limits are worth knowing. Early distributions taken before you meet your plan’s retirement eligibility requirements do not qualify for the retirement exemption and are subject to Mississippi income tax, although the state does not add its own early withdrawal penalty on top of the federal one.6Cornell Law. 35 Miss. Code. R. 3-02-07-104 Investment income from stocks, bonds, and real estate does not qualify for the retirement exemption either.
Who Has to File
Whether you owe a Mississippi return depends on residency and income. Full-year residents must file if gross income exceeds the combined total of the personal exemption and standard deduction. For a single filer with no dependents, that threshold is $8,300. For a married couple filing jointly with no dependents, it’s $16,600. Each dependent raises the threshold by $1,500.4Mississippi Department of Revenue. General Information
You should also file if any of the following apply:
- Mississippi income tax was withheld from your wages and you want a refund of any overpayment.
- You lived in Mississippi for part of the year and earned income while residing there.
- You live in another state but earned income from work performed in Mississippi, from rental property located in the state, or from selling property based in the state.
- You’re a Mississippi resident who worked out of state. Residents report gross income from all sources regardless of where it was earned.
Nonresidents and part-year residents only owe Mississippi tax on income connected to the state, and their personal deductions are prorated based on the share of total income that came from Mississippi sources.7Justia Law. Mississippi Code 27-7-23 – Net Income of Nonresident and Foreign Taxpayers
Deadlines and Penalties
The 2025 Mississippi return is due April 15, 2026. An extension pushes the filing deadline to October 15, 2026, but does not extend the time to pay. Any tax owed is still due April 15, and unpaid balances after that date accrue interest and penalties.5Mississippi Department of Revenue. Individual Income Tax Frequently Asked Questions
The penalty for filing late or underpaying without fraudulent intent is 10 percent of the unpaid amount, plus interest at 0.5 percent per month.8Justia Law. Mississippi Code 27-7-345 – Civil Penalties for Failure to File Return or Deficiency in Payment of Tax Fraudulent failure to file or pay carries a 50 percent penalty plus interest at 1 percent per month. Filing on time even when you can’t pay the full amount is generally the better move.
How to File
Your Mississippi return starts with your federal adjusted gross income, which you then adjust using Mississippi’s own exemptions and deductions. Before you start, pull together your W-2s, any 1099s for contract work or retirement distributions, and your federal return.
Full-year residents use Form 80-105. Part-year residents and nonresidents use Form 80-205. Both forms and their instruction booklets are on the Mississippi Department of Revenue website.9Mississippi Department of Revenue. Resident, Non-Resident and Part-Year Resident Income Tax Instructions
The Mississippi Taxpayer Access Point (TAP) is the state’s online portal for filing returns, making payments, and checking your account. Electronic filing speeds up refund processing by roughly eight weeks compared with paper.10Mississippi Department of Revenue. Make Online Tax Payments
If you file on paper, refund returns go to Department of Revenue, P.O. Box 23058, Jackson, MS 39225-3058. All other returns go to Department of Revenue, P.O. Box 23050, Jackson, MS 39225-3050. Attach legible copies of all W-2s and any 1099s showing Mississippi withholding to the back of the return.11Mississippi Department of Revenue. Form 80-105