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Tax Year 2026Updated July 22, 2026

Mississippi Tax Calculator & Rates 2026

Mississippi is phasing out its income tax under HB 531 (2022). For TY2026, the rate is 0% on the first $10,000 and 4.00% above $10,000 (all filing statuses). The rate drops to 3.0% in 2027 and reaches 0% in 2029. All qualified retirement income is fully exempt. Mississippi taxes groceries at 5.00% (reduced from 7% in July 2025),one of the few states that still taxes food. No local income taxes; no local sales taxes.

State Income Tax
0% / 4.00%
Grocery Tax (state)
5.00%
Retirement Income
Fully Exempt
Standard Deduction (Single)
$2,300

Mississippi Income Tax Brackets 2026

Mississippi uses the same two-tier schedule for all filing statuses: 0% on the first $10,000, then 4.00% on income above $10,000. Confirmed from MS DOR (HB 531, 2022 phase-down schedule). The 4.0% rate applies for TY2026 only,the next reduction takes the rate to 3.0% for TY2027.

Mississippi Taxable Income (All Filing Statuses)Rate
$0 – $10,0000.00%
Over $10,0004.00%

Mississippi Income Tax Phase-Down Schedule

HB 531 (2022) established Mississippi's multi-year income tax phase-out. The schedule per MS DOR: 4.7% (TY2024) › 4.4% (TY2025) › 4.00% (TY2026) › 3.0% (TY2027) › 2.5% (TY2028) › 0% (TY2029). When the phase-out is complete, Mississippi will become a no-income-tax state. The $10,000 exemption threshold is unchanged throughout the phase-down.

Mississippi Standard Deduction & Personal Exemption 2026

Mississippi uses both a standard deduction and a personal exemption, which reduce Mississippi taxable income before the 4.00% rate applies. For TY2026: standard deduction $2,300 (single / MFS / HoH) and $4,600 (MFJ). Personal exemption: $6,000 (single / MFS); $12,000 (MFJ); $8,000 (HoH). Both amounts are confirmed as-is for TY2026 from the Mississippi DOR.

Mississippi Grocery Tax,5.00% State Rate

Mississippi reduced its grocery sales tax rate from 7% to 5.00% effective July 1, 2025, and this rate applies for all of TY2026. Mississippi remains one of the few states that imposes a state sales tax on food for home consumption. Since Mississippi has no local sales taxes (the 7% general rate is uniform and exclusive statewide), the combined grocery tax rate equals the state rate of 5.00%,no local add-ons. Prepared food, restaurant food, and alcoholic beverages are subject to the full 7% general rate.

Mississippi Retirement Tax,Fully Exempt

Mississippi provides a broad retirement income exemption,all qualified retirement income is fully exempt from Mississippi income tax. Exempt income includes: Social Security benefits, state and federal government pensions, military retirement pay, IRA distributions, 401(k) and 403(b) withdrawals, and annuities. This exemption applies to all Mississippi residents regardless of age or income level. Mississippi's combination of a declining income tax rate and full retirement exemption makes it one of the most retirement-friendly states for tax purposes.

OBBBA Conformity,Mississippi Status Pending

Mississippi has its own income tax code administered by the MS DOR. No Mississippi DOR guidance on OBBBA qualified tip income or overtime deduction conformity has been published as of mid-2026. Verify from MS DOR guidance when available.

Mississippi Tax Calculators

Mississippi Paycheck CalculatorMississippi Tips TaxMississippi Overtime Tax

Frequently Asked Questions

What is Mississippi's income tax rate for 2026?
Mississippi taxes income above $10,000 at a flat 4.00% for TY2026. The first $10,000 of Mississippi taxable income is exempt (0%). This applies to all filing statuses,single, MFJ, MFS, and HoH all use the same $10,000 threshold. The 4.0% rate is a reduction from 4.4% in TY2025, as part of the HB 531 (2022) multi-year phase-down schedule.
What is Mississippi's income tax phase-down schedule?
Mississippi enacted HB 531 (2022) to phase out the state income tax entirely. The rate schedule: 4.7% (TY2024) › 4.4% (TY2025) › 4.00% (TY2026) › 3.0% (TY2027) › 2.5% (TY2028) › 0% (TY2029). Once fully phased out, Mississippi will join the group of states with no income tax. The phase-down applies to income above $10,000,the $10,000 exemption has been in place throughout.
What is Mississippi's standard deduction and personal exemption for 2026?
Mississippi has both a standard deduction and a personal exemption. For TY2026, the standard deduction is: $2,300 (single / MFS / HoH); $4,600 (married filing jointly). The personal exemption is: $6,000 (single / MFS); $12,000 (MFJ); $8,000 (HoH). Both the standard deduction and personal exemption reduce Mississippi taxable income before applying the tax rate.
Does Mississippi tax groceries in 2026?
Yes,Mississippi taxes groceries at 5.00% for TY2026. Mississippi is one of the few remaining states with a state-level tax on food for home consumption. The rate was reduced from 7% to 5% effective July 1, 2025. Since Mississippi has no local sales taxes, the grocery rate is a uniform 5% statewide,no local add-ons apply. Excluded from the 5% grocery rate: prepared food, food sold at restaurants, and alcoholic beverages (which are taxed at the standard 7% rate).
Is retirement income taxed in Mississippi?
No,Mississippi fully exempts all qualified retirement income from state income tax. This includes Social Security benefits, state and federal government pensions, military retirement pay, IRA distributions, 401(k) withdrawals, and annuities. This broad retirement exemption applies to all filers regardless of age or income level. Mississippi's combination of a low and declining income tax rate plus full retirement exemption makes it notably retirement-friendly.
Does Mississippi conform to the OBBBA tips and overtime deductions?
Mississippi's OBBBA conformity status is not yet confirmed. Mississippi has its own income tax code administered by the Mississippi Department of Revenue. No MS DOR guidance on OBBBA qualified tip income or overtime deduction conformity has been published as of mid-2026. Verify from MS DOR guidance when available.