Did Mississippi eliminate income tax?
VERDICT
CONFIDENCE
100%
Direct Answer
Mississippi has not eliminated its state income tax. The official Mississippi Department of Revenue lists a 4% rate on taxable income over $10,000 for tax year 2026, down from prior years but still active. A 2025 law initiated a gradual phaseout, with rates dropping further to 3.75% in 2027 and potentially lower later, but elimination is not immediate.
What the Evidence Shows
Official state tax authority confirms ongoing income tax with specific 2026 rates of 0% on first $10,000 and 4% above, directly refuting elimination. Legislation signed in 2025 by Governor Reeves starts phased reductions over years or a decade, tied to economic benchmarks after 2030, to balance revenue needs. Tax filing deadlines and forms for 2026 income remain required, as noted in state guidance and third-party reports.
Why People Get This Wrong
The claim likely stems from confusion over the 2025 phaseout law's announcement, which supporters hyped as 'elimination' despite its explicit gradual schedule spanning years. Media coverage emphasized the bold step toward no income tax but clarified staged cuts, leading some to overlook the timeline. No full elimination has occurred as of 2026.
What are Mississippi's current income tax rates?
For tax year 2026, Mississippi taxes 0% on the first $10,000 of taxable income and 4% on amounts exceeding $10,000. Rates continue declining: 4.4% in 2025 and 3.75% in 2027, per the official Department of Revenue.
When will Mississippi fully eliminate income tax?
No set full elimination date exists; a 2025 law phases rates down gradually, reaching potentially 3% by 2030, with further cuts after 2031 dependent on economic triggers like revenue growth to protect state budgets.
What changes did Mississippi's 2025 tax law make?
The law cuts income tax rates over time, reduces grocery sales tax by 2%, and phases in a nine-cent gas tax increase over three years to fund infrastructure and offset lost revenue during the income tax phaseout.
Sources & Methodology
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