Mississippi Income Tax Calculator
No state in American history has done what Mississippi is doing: writing the elimination of its income tax directly into law, year by year, until the number hits zero. Right now in 2025 the rate sits at 4.4% on income above $10,000 — but that figure drops to 4.0% next year, and the schedule runs all the way to 3.0% by 2030, with a revenue-trigger mechanism to reach zero after that. For anyone doing financial planning in Mississippi, the trajectory matters as much as the current rate.
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Mississippi Income Tax: A Rate Headed for Extinction
In March 2025, Governor Tate Reeves signed House Bill 1 — the Build-Up Mississippi Act — and made Mississippi the first state in American history to commit by statute to completely eliminating its individual income tax. Not just cutting it. Not just promising to revisit it. Eliminating it, with specific annual rates written into law through 2030 and a revenue-trigger mechanism designed to push the number all the way to zero once the state’s fiscal position supports it. That context reframes everything about understanding Mississippi income tax in 2025: the current 4.4% rate is not a target, a resting point, or even a midpoint. It is a moment in a countdown.
The current structure has a certain elegance to it. The first $10,000 of Mississippi taxable income is taxed at 0% — but understand what “taxable income” means here before applying that number to your gross wages. A single filer first subtracts a $2,300 Mississippi standard deduction and a $6,000 personal exemption, arriving at taxable income only then. Those two reductions total $8,300, which means a single Mississippian earning up to $18,300 in gross income typically owes the state nothing at all — the deductions eat up the income before it reaches the $10,000 zero-rate band, and what little remains fits within that band. For married couples filing jointly, the combined standard deduction ($4,600) and personal exemption ($12,000) of $16,600 create a similar protective floor. It is only above these combined thresholds that the 4.4% rate ever becomes relevant. For most Mississippi households at lower-to-moderate incomes, the effective state income tax rate is already quite far below the headline 4.4% figure. Mississippi uses “Head of Family” rather than “Head of Household” as a filing status — a minor label difference, but it carries a $8,000 personal exemption versus the single filer’s $6,000, making it genuinely worth claiming for qualifying single parents.
Retirement in Mississippi is a different calculation entirely. Social Security benefits are fully exempt — no income cap, no age requirement, no partial phase-out. Mississippi Public Employees’ Retirement System (PERS) distributions are also completely free of Mississippi income tax, as are military retirement benefits. This exemption landscape is significant because Mississippi’s public sector is large relative to its private economy: teachers, state employees, corrections officers, and municipal workers who contribute to PERS throughout their careers receive their retirement income free from state tax. Private IRA and 401(k) distributions, however, are generally taxable in Mississippi at the current rate — though with the rate falling each year, the tax bite on those distributions shrinks annually until the elimination is complete. No Mississippi city or county levies a local income tax: Jackson, Gulfport, Biloxi, Hattiesburg, Tupelo, Meridian, and Southaven are all free of local income tax on wages.
Frequently Asked Questions
Mississippi taxes the first $10,000 of taxable income at 0% and all taxable income above $10,000 at a flat 4.4% rate for 2025. This is down from 4.7% in 2024. After personal exemptions ($6,000 single / $12,000 MFJ) and the standard deduction ($2,300 single / $4,600 MFJ), a single filer would need to earn more than $18,300 before owing any Mississippi income tax at all.
Yes. House Bill 1, the Build-Up Mississippi Act signed by Governor Tate Reeves on March 27, 2025, locks in a statutory rate-reduction schedule: 4.0% in 2026, 3.75% in 2027, 3.5% in 2028, 3.25% in 2029, and 3.0% in 2030. Starting in 2031, if state revenue exceeds appropriations by a defined threshold, the rate drops further each year until it reaches zero. Mississippi is the first state in U.S. history to commit by statute to eliminating its individual income tax.
No. Mississippi fully exempts Social Security benefits, Railroad Retirement benefits, Veterans Administration payments, and workers’ compensation from state income tax. There is no income threshold, no age requirement, and no phase-out — these income types are simply removed from Mississippi taxable income before any rate applies.
No. Mississippi Public Employees’ Retirement System (PERS) benefits are fully exempt from Mississippi income tax, as are military retirement benefits. Mississippi’s government-sector workforce — which is substantial relative to the state’s private economy — pays Mississippi income tax during working years but owes nothing to the state on PERS distributions in retirement.
Mississippi’s standard deduction is $2,300 for single filers and $4,600 for married filing jointly. The personal exemption is $6,000 per single filer ($12,000 for married filing jointly), plus $1,500 for each qualifying dependent. Head of Family filers receive an $8,000 personal exemption. These amounts were not changed by HB 1 and remain the same as in prior years.
No. Mississippi does not allow cities or counties to levy local income taxes. Jackson, Gulfport, Biloxi, Hattiesburg, Tupelo, and every other Mississippi municipality charge zero local income tax on wages.
Methodology: Calculations use Mississippi’s 2025 rate structure (0% on first $10,000 of taxable income, 4.4% above — per Mississippi Department of Revenue and Build-Up Mississippi Act HB 1), standard deductions ($2,300 single/MFS/HOF; $4,600 MFJ), personal exemptions ($6,000 single/MFS; $8,000 Head of Family; $12,000 MFJ; $1,500 per dependent), full exemption of Social Security benefits, Railroad Retirement, VA payments, PERS benefits, and military retirement. Private 401(k)/IRA income is taxable. Rate schedule projections use enacted HB 1 rates: 4.0% (2026), 3.75% (2027), 3.5% (2028), 3.25% (2029), 3% (2030). Federal calculations use 2025 IRS brackets and Child Tax Credit rules; FICA uses 2025 Social Security (6.2% to $176,100) and Medicare (1.45% + 0.9% additional) rates per IRS.gov. Mississippi allows no local income taxes. This tool is for planning purposes only and is not tax, legal, or financial advice. Last reviewed: June 2026.