Mississippi Eliminates Income Taxes
Mississippi has officially joined the ranks of states with no personal income tax. On March 27, 2025, Mississippi Gov. Tate Reeves (R) signed House Bill 1, also known as the “Build Up Mississippi Act,” into law.
This legislation eliminates the state’s individual income tax through a phased approach, with full implementation expected over the next several years.
Governor Reeves expressed pride in this achievement, declaring, “Mississippi will no longer tax the work, the earnings, or the ambition of its people.”
He emphasized the significance of the legislation, noting that only a handful of states do not tax income, positioning Mississippi among this elite group.
The new law gradually reduces Mississippi’s current income tax rate of 4.4% to 3% by 2030. Starting in 2026, the state will implement annual 0.25% reductions.
This legislation eliminates the state’s individual income tax through a phased approach, with full implementation expected over the next several years.
Governor Reeves expressed pride in this achievement, declaring, “Mississippi will no longer tax the work, the earnings, or the ambition of its people.”
He emphasized the significance of the legislation, noting that only a handful of states do not tax income, positioning Mississippi among this elite group.
The new law gradually reduces Mississippi’s current income tax rate of 4.4% to 3% by 2030. Starting in 2026, the state will implement annual 0.25% reductions.
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