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Income Tax in Mississippi: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Mississippi is in the process of transitioning from a graduated income tax to a flat rate structure. As part of legislation signed in 2022, the state has been phasing out its lower brackets and reducing the top rate annually. For 2026, the projected flat rate is approximately ~4.7% on taxable income above ~$10,000, with the first ~$10,000 of taxable income exempt. The long-term goal is to continue reducing the rate and potentially eliminate the income tax altogether, though future reductions remain contingent on revenue triggers.

Mississippi Income Tax Rates (2026)

Taxable Income Bracket	Marginal Rate
First ~$10,000	~0%
Over ~$10,000	~4.7%

Mississippi effectively exempts the first ~$10,000 of taxable income from state tax, creating a zero-bracket that benefits all filers. The ~4.7% rate applies to all income above that threshold.

How Mississippi Income Tax Works

Transition to Flat Rate

Mississippi previously used a three-bracket system with rates of 3%, 4%, and 5%. The 2022 reform eliminated the lower brackets and is reducing the top rate by approximately 0.1% per year. The projected ~4.7% rate for 2026 reflects this ongoing reduction. Future reductions are expected to continue, potentially reaching ~4.0% by the early 2030s.

Standard Deduction and Exemptions

Standard deduction: ~$2,300 for single filers; ~$4,600 for married filing jointly
Personal exemption: ~$6,000 for single filers; ~$12,000 for married filing jointly
Dependent exemption: ~$1,500 per dependent
Combined zero bracket: When added to the ~$10,000 zero-rate bracket, many lower-income filers owe no Mississippi income tax

Key Exclusions

Social Security: Fully exempt from Mississippi income tax
Retirement income: All qualified retirement income from IRAs, 401(k)s, pensions, and government retirement systems is fully exempt from Mississippi income tax
Military retirement: Fully exempt
Capital gains: Taxed as ordinary income at the applicable rate

Tax Credits

Child care credit: Available for qualifying child and dependent care expenses
Earned income credit: Not available at the state level
Ad valorem tax credit: A credit for property taxes paid on personal property (vehicles)
Teacher classroom credit: For qualifying expenses by K-12 educators
Business investment credits: Various credits for new jobs and capital investment

Who Must File in Mississippi

You must file a Mississippi return if:

You are a resident with gross income exceeding ~$8,300 (single) or ~$16,600 (married filing jointly)
You are a part-year resident or nonresident with Mississippi-source income
You want to claim a refund of withholding

Mississippi uses Form 80-105 for residents and Form 80-205 for nonresidents. The filing deadline is April 15.

Comparison to National Average

State	Top Income Tax Rate	Structure
Mississippi	~4.7%	Flat (phasing in)
Alabama	~5.0%	Graduated
Louisiana	~4.25%	Graduated
Arkansas	~3.9%	Graduated
Tennessee	~0%	No income tax
National average	~4.60%	Varies

Mississippi’s projected rate of ~4.7% is near the national average. The full exemption of retirement income and the ~$10,000 zero-bracket make the effective rate considerably lower for retirees and lower-income earners.

Tips for Minimizing Mississippi Income Tax

Verify that all retirement income is excluded. Mississippi exempts all qualifying retirement distributions, including IRAs, 401(k)s, and pensions. Ensure your tax preparer applies these exclusions correctly.
Claim the full personal exemption. The ~$6,000 single (or ~$12,000 joint) personal exemption, combined with the standard deduction and zero bracket, can eliminate tax liability for moderate-income filers.
Maximize retirement contributions. Because Mississippi fully exempts retirement income, contributing to 401(k) and IRA accounts provides both a current federal deduction and future state tax exemption on distributions.
Claim the ad valorem tax credit. If you paid property taxes on vehicles or other personal property, this credit directly reduces your Mississippi tax liability.
Review your filing threshold. If your gross income is below the filing threshold, you may still want to file to receive a refund of withholding.
Monitor rate reduction schedule. Mississippi’s rate is expected to continue declining in future years. Plan multi-year income strategies accordingly.
Keep records for capital gains. Capital gains are taxed as ordinary income in Mississippi, so documenting your cost basis carefully is important for accurate reporting.

Key Takeaways

Mississippi imposes a projected flat rate of ~4.7% for 2026 on income above ~$10,000, with ongoing scheduled reductions
The first ~$10,000 of taxable income is exempt, effectively creating a zero bracket
All qualifying retirement income — including pensions, IRAs, 401(k)s, and Social Security — is fully exempt from Mississippi income tax
The state provides a generous personal exemption of ~$6,000 (single) or ~$12,000 (joint)
Mississippi does not offer a state earned income tax credit
The rate reduction schedule may bring the rate to ~4.0% or lower by the early 2030s

Next Steps

Federal Income Tax Guide 2026 — See how federal income flows to your Mississippi return.
State Income Tax Rates Comparison 2026 — Compare Mississippi to all 50 states.
Best States for Retirees: Tax Guide 2026 — Evaluate Mississippi’s retiree-friendly tax policies.
Capital Gains Tax Guide — Understand how gains are taxed at the state level.
Find a CPA Near You — Get personalized Mississippi tax advice.