Mississippi — Personal Income Tax

For tax year 2026, Mississippi residents are required to file a personal income tax return if their gross income exceeds the sum of the applicable personal exemption and standard deduction amounts, plus additional exemptions for dependents.

• Single filers: Must file if gross income exceeds $8,300 ($6,000 personal exemption plus $2,300 standard deduction).
• Married filing jointly: Must file if combined gross income exceeds $16,600 ($12,000 personal exemption plus $4,600 standard deduction).
• Each dependent: Adds $1,500 to the threshold (additional personal exemption per dependent).

These underlying exemption and deduction amounts are explicitly listed in the Mississippi Department of Revenue’s current tax instructions (Form 80-100), which illustrates both the applicable personal exemption ($6,000 single, $12,000 married) and the standard deduction amounts ($2,300 single, $4,600 married) for the year cited. The $1,500 additional exemption per dependent is similarly supported. This is the current DOR-published official guide for 2026.

Residents who work out of state (such as interstate carriers, construction workers, or offshore workers) must file a Mississippi resident return and report total gross income from all sources. Residents employed in a foreign country on a temporary or transitory basis are also subject to Mississippi income tax on their total gross income.

Source: Mississippi Department of Revenue – Individual Income Tax Instructions (Form 80-100, Revised for 2025)

An individual is considered a Mississippi resident for individual income tax purposes if they are domiciled in Mississippi or maintain a place of abode in the state. The Mississippi Department of Revenue states: “Domicile is the permanent home or intending to return whenever absent. Maintaining a home in Mississippi, registering to vote in Mississippi, claiming a homestead exemption, or having children attend Mississippi public schools are all indications of residency.” No one factor is strictly determinative, but these criteria are affirmative evidence the state considers when assessing residency status.

Military personnel who enter the U.S. Armed Forces as Mississippi residents retain their residency status even when absent from the state due to military orders, until a new domicile is established elsewhere. This treatment is addressed in the DOR’s FAQ guidance, and the same page confirms that absence for military duty does not by itself change residency if domicile is maintained.

There has been no material change in the Department of Revenue’s residency definition since the prior review. The FAQ is the DOR’s principal published interpretive source as of June 2024; Mississippi statutes do not supply a more detailed definition for individual income tax residency.

Source: Mississippi Department of Revenue – Individual Income Tax FAQ: Residents

For the 2025 tax year, Mississippi imposes no tax on the first $10,000 of an individual's taxable income. Taxable income above $10,000 is taxed at 4.4%. This tiered rate structure applies to resident individuals and does not differentiate between residents and nonresidents for the purposes of the rate threshold.

The rate schedule and no-tax threshold were codified as part of the Mississippi Tax Freedom Act (HB 531, 2022), and are confirmed for tax year 2025 in current Mississippi Department of Revenue publications. No subsequent legislative amendment or DOR authority has altered the structure or effective dates as of the latest review.

Source: Mississippi Department of Revenue – General Information

Nonresidents and part-year residents must file a Mississippi income tax return if they have income taxed by Mississippi. This includes individuals with Mississippi tax withheld from their wages (except gambling income) and those with Mississippi-sourced income such as wages earned in the state, business income from Mississippi operations, or rental income from Mississippi property.

Source: Mississippi Department of Revenue – General Information

Mississippi allows taxpayers to claim a standard deduction in lieu of itemizing individual nonbusiness deductions. Under Miss. Code Ann. § 27-7-17(3)(b), the standard deduction amounts are fixed and vary by filing status. The statute establishes that the current amounts have been in effect "for each calendar year" since calendar year 1999.

Standard deduction amounts:

• Married filing joint or combined: $4,600
• Married filing separate: $2,300
• Head of family: $3,400
• Single: $2,300

Division between spouses on joint or combined returns:

For married individuals filing a joint or combined return, the $4,600 standard deduction amount or the itemized deduction amount may be divided between the spouses in any manner they choose. This provision is codified in Miss. Code Ann. § 27-7-17(3)(b)(i).

Married filing separate restriction:

In the case of separate returns by a husband and wife, the standard deduction is not allowed to either spouse if the taxable income of one of the spouses is determined without regard to the standard deduction. Both spouses must either claim the standard deduction or both must itemize; they cannot split approaches. For married filing separate, any unused portion of the $2,300 standard deduction amount by one spouse on his or her separate return cannot be used by the other spouse on his or her separate return.

Nonresident allocation:

Under Miss. Code Ann. § 27-7-17(3)(c), a nonresident individual is allowed the same individual nonbusiness deductions as are authorized for resident individuals, including the standard deduction. However, the nonresident individual is entitled only to that proportion of the individual nonbusiness deductions as his net income from sources within the State of Mississippi bears to his total or entire net income from all sources.

Itemized deduction alternative:

Mississippi allows the same itemized deductions as are authorized for federal income tax purposes, with one exception: Mississippi income taxes are not deductible on the Mississippi itemized deduction schedule, requiring that an adjustment be made for that exception. Taxpayers may choose to either itemize individual non-business deductions or claim the standard deduction for their filing status, whichever provides the greater tax benefit.

Source: Mississippi Department of Revenue – General Information

Mississippi enacted House Bill 1 (the "Build-Up Mississippi Act") on March 27, 2025, establishing a multi-year phase-out schedule that will ultimately eliminate the state's individual income tax. The legislation amended Miss. Code Ann. § 27-7-5 to reduce the flat tax rate on income exceeding $10,000 in a series of scheduled steps, with further trigger-based reductions designed to bring the rate to zero.

Scheduled rate reductions (2026–2030)

• 2026: 4% on taxable income over $10,000 (this rate was set by HB 531 (2022) and was not modified by HB 1)
• 2027: 3.75% on taxable income over $10,000
• 2028: 3.5% on taxable income over $10,000
• 2029: 3.25% on taxable income over $10,000
• 2030: 3% on taxable income over $10,000

The 2025 rate is 4.4%, and beginning January 1, 2026, the rate on taxable income above $10,000 decreases to 4% under current law. House Bill 1 (2025) did not alter the 2026 rate—rather, it established additional scheduled reductions starting in tax year 2027. The forward phase-out schedule builds on the rate structure and zero-tax threshold set by HB 531 (2022).

Trigger-based reductions (2031 and thereafter)

Beginning in calendar year 2031, further reductions are contingent on meeting two conditions simultaneously:

1. Reserve-fund requirement: The Working Cash-Stabilization Reserve Fund must be fully funded as provided in Miss. Code Ann. § 27-103-213.

1. Revenue-growth trigger: Adjusted general fund revenue collections for a fiscal year must exceed the appropriations for the following fiscal year by at least 0.85% of the cost of a 1% income tax reduction.

When both conditions are met, the rate is reduced in increments until it reaches 0%. The statute does not specify the reduction increment per triggering year, but contemporaneous legislative materials and agency guidance suggest reductions of 0.2 to 0.3 percentage points per trigger event based on the prior year's revenue margin.

Timing and ultimate elimination

The statute provides that when the application of the tax reduction results in a tax of 0% on all taxable income of individuals in excess of $10,000, the individual income tax will be eliminated. The timing of full elimination depends on meeting the revenue triggers each year. Estimates published at the time of enactment ranged from approximately 2040 to beyond, depending on revenue growth and state spending discipline.

No change to the $10,000 zero-bracket amount

Under both the scheduled reductions and the trigger-based reductions, the first $10,000 of taxable income remains subject to no tax. This zero-bracket amount has been in effect since calendar year 2022 and is not altered by HB 1.

Practitioner note

Multi-year income projections for Mississippi taxpayers—especially high-income individuals, trusts, and pass-through entities—must account for the declining rate schedule and the uncertainty inherent in the post-2030 trigger mechanism. The revenue-growth trigger introduces year-to-year variability: a fiscal downturn or increased appropriations in any given year can delay the next reduction. Conversely, strong revenue growth or spending restraint can accelerate the path to elimination.

Source: House Bill 1 (As Introduced), 2025 Regular Session

Mississippi personal exemption amounts are set by statute and confirmed by Department of Revenue publications for both return preparation and withholding purposes. For tax years 2025 and 2026, the personal exemption amounts are:

• Single filer: $6,000
• Married filing jointly or combined: $12,000 (for both spouses combined)
• Married filing separately: $6,000 per spouse
• Head of Family: $8,000
• Each dependent (other than spouse): $1,500
• Additional exemption for blindness or age 65+ (taxpayer or spouse): $1,500 per qualifying person

The statutory authority is Miss. Code Ann. § 27-7-21, which has set these specific amounts per filing status for all years after 1998. The figure of $9,500 for a married individual formerly appeared in older withholding instructions and prior versions of the administrative code; _it is no longer current and does not match the present-day exemptions for actual return preparation_. The $12,000 exemption for married filing jointly is confirmed by the latest Department of Revenue withholding tables and official publications for tax year 2026. Withholding allocation between spouses is allowed, per DOR guidance, in $500 increments so long as the combined exemptions do not exceed the allowable total.

Practitioners preparing Mississippi personal income tax returns for tax year 2025 and later should use the $12,000 amount for married filing jointly or $6,000 for each spouse if filing separately, not the $9,500 historical figure.

Source: Miss. Code Ann. § 27-7-21 Source: Mississippi Department of Revenue – Withholding Tax Tables & Instructions, Pub. 89-700-25-1 (Rev. 1.13.2026)

Mississippi's individual income tax rate for the 2026 tax year is a flat 4% on taxable income in excess of $10,000. Beginning in 2022, the first $10,000 of taxable income is not subject to income tax. The Build-Up Mississippi Act (House Bill 1, 2025 Regular Session) amended Miss. Code Ann. § 27-7-5 to institute a phased reduction of the income tax rate, with specific rates for each year through 2030 and a mechanism for further reductions after 2030.

Scheduled rate reductions:

• 2026: 4% on taxable income exceeding $10,000
• 2027: 3.75% on taxable income exceeding $10,000
• 2028: 3.5% on taxable income exceeding $10,000
• 2029: 3.25% on taxable income exceeding $10,000
• 2030 and subsequent years: 3% on taxable income exceeding $10,000

Post-2030 trigger-based reductions: Starting in 2031, further tax rate reductions are contingent on fiscal triggers. The statute requires the Working Cash-Stabilization Reserve Fund to be fully funded (as defined by Miss. Code Ann. § 27-103-213), and that adjusted general fund revenues for any fiscal year exceed appropriations for the coming fiscal year by at least 0.85% of the cost of a 1% income tax reduction. When both conditions are met, the rate may be further reduced until it reaches 0%, thereby eliminating the individual income tax. If the triggers are not met in a given year, the rate remains unchanged until they are.

As of the 2026 tax year, no legislative amendments have changed the scheduled rates or the $10,000 zero-tax threshold established by prior law. The forward-looking scheduled reductions (2027–2030) are therefore as enacted by HB 1, unless amended by future legislation.

Source: Mississippi Department of Revenue – General Information Source: Build-Up Mississippi Act (HB 1, 2025 Regular Session) – enrolled bill, Mississippi Legislature (PDF)

Mississippi allows personal exemption amounts that reduce gross income for state individual income tax purposes. The exemption amounts by filing status are as follows for tax year 2025 (returns filed in 2026):

• Single: $6,000
• Married filing jointly or combined: $12,000 (for both spouses)
• Married filing separately: $6,000 per spouse
• Head of family (qualified taxpayer maintaining a home for a dependent): $8,000

Additional personal exemptions are available for each dependent (other than spouse), for the taxpayer or spouse who is blind, and for the taxpayer or spouse who is age 65 or older; each of these is $1,500 per qualifying person, based on Mississippi Department of Revenue guidance. These exemptions are cumulative and reduce gross income to determine Mississippi taxable income.

Comparison with the standard deduction: Mississippi also provides a standard deduction by filing status. For tax year 2025:

• Single: $2,300
• Married filing jointly or combined: $4,600
• Married filing separately: $2,300
• Head of family: $3,400

Both the applicable personal exemption and the standard deduction may be claimed, further reducing taxable income. For example, a single filer may take both the $6,000 personal exemption and $2,300 standard deduction, for a total reduction of $8,300 before further adjustments for dependents, blindness, or age.

The Department of Revenue's withholding tables, forms, and official guidance reflect these amounts. Nonresidents and part-year residents prorate exemptions according to the proportion of income sourced in Mississippi, with rules set out in administrative guidance and statute.

Source: Mississippi Department of Revenue – Withholding Tax Tables & Instructions, Pub. 89-700-25-1 (Rev. 1.13.2026)

Human confirmation status: Not yet human confirmed.

Mississippi exempts qualified retirement income—including distributions from private and public pension plans, 401(k) accounts, and IRAs—from state individual income tax. This exclusion applies only to distributions meeting the statutory and plan requirements for retirement, meaning early withdrawals prior to meeting plan-specific retirement conditions may be taxable.

Scope of excluded income: Miss. Code Ann. § 27-7-15(4)(a) provides that amounts received as retirement allowances, pensions, or annuities under the federal Social Security Act, the Railroad Retirement Act, the Federal Civil Service Retirement Act, any retirement system of the United States, or any retirement system of the State of Mississippi or its political subdivisions “shall not be included in gross income.” The Mississippi Department of Revenue interprets this exclusion to cover both government and private qualified plans. The exclusion extends to the surviving spouse or other beneficiary of a deceased retiree, if the plan provides for continued benefit payments.

Qualified plan distributions: The Mississippi Department of Revenue further affirms, in its published guidance, that "retirement income, pensions and annuities are not subject to Mississippi Income tax if the recipient has met the retirement plan requirements." However, distributions that do not qualify as retirement income under the terms of the specific plan (such as early or ineligible withdrawals) may be subject to Mississippi income tax.

Documentation and exceptions: Mississippi law and DOR guidance do not require recipients to report retirement distributions as taxable income on their state return if the payment qualifies as retirement income under federal or Mississippi plan rules. There is no income cap or age trigger for this exemption beyond the qualifying requirements attached to each type of plan or account. Residents should maintain documentation to support both plan eligibility and the nature of the distribution, as early or nonqualified distributions may be taxable.

Source: Mississippi Department of Revenue – Individual Income Tax FAQ: Retirement and Social Security

Mississippi law fully exempts Social Security benefits, Railroad Retirement benefits, and military retirement pay from individual income tax.

Social Security and Railroad Retirement Benefits: Under Miss. Code Ann. § 27-7-15(4)(a), gross income does not include "retirement allowances, pensions, annuities or similar payments" made under the federal Social Security Act or the Railroad Retirement Act. Both the statute and the Mississippi Department of Revenue (DOR) confirm that Social Security and Railroad Retirement benefits are not taxable and should not be included on the Mississippi individual income tax return. The DOR FAQ states plainly that "Social Security benefits and Railroad Retirement income are not taxable to Mississippi residents."

Military Retirement Pay: Payments from "any retirement system of the United States" are also excluded from gross income by statute. The DOR FAQ confirms: "Military retirement income, both for regular and disability retirement, as well as survivor benefits, are not taxable to Mississippi residents."

What This Means Practically: None of these types of retirement income—Social Security, Railroad Retirement, or military retired pay—should be reported as taxable income on a Mississippi return if they qualify under the referenced federal retirement regulations. The DOR FAQ covers these three categories directly and states that they are always excluded for Mississippi individual income tax purposes.

Other Retirement Exclusions: Distributions from private or other public retirement systems may also be excluded; details are covered in the separate retirement income exclusion section.

Source: Miss. Code Ann. § 27-7-15(4)(a), Mississippi Department of Revenue – Individual Income Tax FAQ (Retirement and Social Security)

Mississippi’s standard deduction amounts for individual income tax purposes are fixed dollar values established in statute for each filing status. As of tax year 2026, these amounts remain:

• $4,600 for married filing jointly or combined returns
• $2,300 for single filers and married filing separately
• $3,400 for head of family

No inflation adjustment: Mississippi law does not authorize inflation adjustment (indexing) of the standard deduction. The language of Miss. Code Ann. § 27-7-17(3)(b) states these specific dollar amounts "for calendar year 1998 and for each calendar year thereafter." There is no statutory formula, index, or reference that would increase the deduction amounts annually for inflation or other economic changes. DOR publications and forms for tax years 2025 and 2026 list the unchanged deduction values, confirming that the deduction amounts are not indexed.

No changes in the Build-Up Mississippi Act or other recent legislation: The Build-Up Mississippi Act (HB 1, 2025) and related personal income tax reforms address scheduled reductions and the ultimate phase-out of the individual income tax rate, but do not amend or otherwise affect the standard deduction amounts. The statutory language for the standard deduction has not been changed by the 2025 or 2022 amendments, and no pending legislation or DOR rulemaking (as of June 2026) modifies the standard deduction. The deduction amounts may only be changed by new legislation that expressly amends § 27-7-17(3)(b).

Conclusion: The Mississippi standard deduction is a fixed statutory amount by filing status, with no inflation indexing or scheduled step-up in connection with recent reforms. Any changes would require explicit legislative action, which has not occurred as of tax year 2026.

Source: Miss. Code Ann. § 27-7-17(3)(b)

Direct answer: For the 2026 tax year, Mississippi imposes a flat 4% tax on taxable income in excess of $10,000 for individuals. This replaces the 4.4% rate that applies for the 2025 tax year. The scheduled rate for 2027 is 3.75% on taxable income above $10,000, with further phased reductions enacted.

Why: The rate schedule is established by House Bill 1 (Build-Up Mississippi Act, 2025 Regular Session), which amends Miss. Code Ann. § 27-7-5. For tax year 2025, the tax rate on taxable income above $10,000 is 4.4%. For tax year 2026, the flat rate declines per the statutory schedule to 4%. In 2027, the rate is further reduced to 3.75%. HB 1 did not alter the 2026 rate initially set by HB 531 (2022); rather, it added additional scheduled reductions and an eventual trigger-based elimination mechanism from 2031 onward. For all years, the first $10,000 of taxable income is not subject to tax—a threshold set by HB 531 and reconfirmed by HB 1.

Source support (primary authority):

• House Bill 1 (2025) as sent to the Governor explicitly enumerates: "For calendar year 2026, the rate...is four percent (4%)... For calendar year 2027, the rate...is three and three-fourths percent (3.75%)..." (Section 1, amending Miss. Code Ann. § 27-7-5).
• The Mississippi Department of Revenue's summary guidance for taxpayers confirms the schedule: 4.4% (2025), 4.0% (2026), 3.75% (2027) for taxable income above $10,000.

Caution/review status: Not yet human confirmed. Practitioners should monitor legislative updates for any amendments to HB 1 or related statutes that may alter these scheduled rates.

Source: House Bill 1 (2025 Regular Session) – as sent to Governor Source: Mississippi Department of Revenue – General Information

Mississippi law defines the resident income tax filing requirement using a "gross income" threshold, but certain types of income are expressly excluded by statute and Department of Revenue (DOR) guidance from what counts toward this threshold.

Core statutory exclusions: Mississippi Code Annotated § 27-7-15 details income exclusions for individual residents:

• Social Security and similar federal pensions: § 27-7-15(4)(a) excludes “retirement allowances, pensions, annuities or similar payments” under the federal Social Security Act, the Railroad Retirement Act, and similar federal retirement laws from Mississippi gross income. Benefits to surviving spouses or beneficiaries are covered in § 27-7-15(4)(l).
• State/local and private retirement: § 27-7-15(4)(k) excludes income from any retirement system maintained by the State of Mississippi or its subdivisions, and qualifying private retirement and disability plans meeting specific conditions.
• Military and certain other pensions: § 27-7-15(4)(j) covers retirement received from “any retirement system of the United States.”
• Workers’ compensation and public welfare: § 27-7-15(4)(e)-(g) exclude workers’ comp and public assistance payments.
• Scholarships and grants: § 27-7-15(4)(d) excludes amounts received as scholarships or fellowship grants, provided those amounts meet the conditions set by the Internal Revenue Code § 117 (used for tuition, fees, books, and supplies by degree candidates); amounts for room and board remain taxable.

Agency confirmation and gray areas: The Mississippi DOR Individual Income Tax FAQs reinforce that Social Security, public and private pensions (when meeting statutory requirements), Railroad Retirement, military retirement, VA payments, and workers’ compensation are not taxed and not included in the resident gross income threshold calculation. The DOR also confirms scholarship exclusions: only the portion used for qualified educational expenses is excluded, while amounts for non-qualified expenses are included. Where questions arise about borderline income sources, statute prevails, and DOR guidance should be checked for annual updates.

Included income: All other income—such as wages, self-employment/business income, rental, interest (except specified U.S. obligations), capital gains, and unqualified withdrawals from retirement accounts—is included in gross income for threshold purposes.

Effective date and caveats: The dollar thresholds referenced in the filing-requirement sections are current as of the 2026 tax year, per DOR Pub. 89-700-25-1 (Rev. 1.13.2026). Mississippi does not automatically adopt future federal exclusions unless the Legislature or DOR specifically updates its statutes or rules.

Source: Mississippi Department of Revenue – Individual Income Tax FAQ

Unable to confirm as of 2026-06-17.

Mississippi law imposes distinct withholding obligations when nonresidents earn income from Mississippi sources, particularly wages for services performed in the state and gains from sales of real property.

Wage withholding for nonresidents working in Mississippi:

Under Mississippi Regulation 35-3-11-09-101, employers are required to withhold Mississippi income tax on wages paid for services performed within the state, regardless of whether the employee is a resident or nonresident. If an employee performs services inside and outside Mississippi, the employer must allocate and withhold only on wages attributable to services performed in Mississippi. The location of employment (Mississippi base situs), rather than the employee’s residency, is determinative; all wages attributable to duties performed in-state or assigned to a Mississippi location are subject to withholding. (See Reg. 35-3-11-09-101.)

Withholding on sale of Mississippi real estate by nonresidents:

Miss. Code Ann. § 27-7-308 requires a nonresident seller of Mississippi real property (and certain tangible personal property sold as part of the real estate transaction) to withhold 5% of the "amount realized" (typically gross proceeds) from the sale if those proceeds exceed $100,000. The nonresident seller has the option to instead withhold on the realized gain rather than the gross sales price, but this requires submission of an affidavit (Form 89-386) certifying the gain. The primary withholding responsibility, including remittance and filing, rests with the nonresident seller. Failure to properly withhold does not impair marketable title but does make the seller liable for the tax. (See Miss. Code Ann. § 27-7-308; Form 89-386 and instructions.)

Filing procedures and timing:

Mississippi Department of Revenue Form 89-386 must be filed along with the withholding payment. The instructions require payment when the transaction occurs, but do not specify an exact statutory deadline. If timing is unclear for a given transaction, practitioners should refer to DOR instructions and, if necessary, seek clarification directly from the agency. (See Form 89-386.)

Source: Mississippi Regulation 35-3-11-09-101 Source: Miss. Code Ann. § 27-7-308 Source: Mississippi Department of Revenue Form 89-386

Caution/review status: Not yet human confirmed. Key procedural filing deadlines for real estate transactions remain subject to DOR interpretation; statutory language is silent on explicit remittance timing.