Mississippi state income tax rate 2027

The 2027 rate is already scheduled

The Mississippi Department of Revenue's summary of the 2025 legislation describes House Bill 1: it "reduces income tax on individuals for taxable income in excess of $10,000" to 3.75% for calendar year 2027, 3.5% for 2028, 3.25% for 2029 and 3% for 2030 and all years thereafter, except as the bill otherwise provides. The first $10,000 of taxable income is exempt. Tax Foundation's February 2026 table shows the preceding step: 4% above $10,000 for 2026.

The phase-down continues past 3%

HB 1 also provides a method for going below 3%. For calendar year 2031 and later, if the Working Cash-Stabilization Reserve Fund is fully funded, the tax on income above $10,000 is reduced by a percentage that depends on how far adjusted general fund collections exceed appropriations, starting with fiscal year 2029. Those later cuts are conditional, so only the 2027 to 2030 rates are fixed by the schedule.

Deductions and exemptions

Mississippi taxes income after a standard deduction and personal exemption. Tax Foundation lists, for 2026, a $2,300 standard deduction ($4,600 joint), a $6,000 exemption ($12,000 joint) and $1,500 per dependent; those are the figures used here. The Department of Revenue's FAQ describes a zero bracket of $10,000 for each taxpayer on a joint return, but this calculator applies a single $10,000 as for one earner.

Worked example

Single, $75,000 of wages: after the $2,300 deduction and $6,000 exemption, $66,700 is taxable, and 3.75% of the part above $10,000 ($56,700) is $2,126.25, an effective 2.83% of wages. Under the 2026 rate of 4% the same income would owe $2,268.00, about $141.75 more. A couple with $120,000 of wages and two dependents: $100,400 taxable and $3,390.00 tax.

Who this is for, and what it does not cover

It is for employees and planners estimating Mississippi state income tax on wages for 2027. It does not cover local income taxes, tax credits, retirement or investment income, self-employment tax, federal income tax or payroll taxes, and it does not file or submit anything. The result changes if you enter a different rate, so use the rate box when the state announces a final 2027 figure.

FAQ

What is the Mississippi state income tax rate for 2027?

Under House Bill 1 of 2025, as summarised by the Department of Revenue, the rate on taxable income above $10,000 is 3.75% for calendar year 2027.

How low will the Mississippi income tax go?

The schedule is 3.5% for 2028, 3.25% for 2029 and 3% for 2030 and later, with possible further reductions from 2031 if the stabilization fund and revenue conditions are met.

Is the first $10,000 taxed in Mississippi?

No. The rate applies to taxable income in excess of $10,000.

What was the rate in 2026?

Tax Foundation's February 2026 table lists 4.00% above $10,000 for 2026.

What deductions does Mississippi allow?

Tax Foundation lists a $2,300 standard deduction ($4,600 joint), a $6,000 exemption ($12,000 joint) and $1,500 per dependent for 2026.

Is this my final 2027 Mississippi tax?

No. It is a projection using the 2026 deductions. Credits and the joint-return zero bracket detail are not modelled.

Sources

Retrieved 2026-11-01. Each link was opened and checked against the claim next to it; where a page blocks automated readers a dated archive copy is named.

• Mississippi Department of Revenue: 2025 legislation summary (House Bill 1): The 3.75%, 3.5%, 3.25% and 3% schedule for 2027 onward and the conditional cuts from 2031.
• Mississippi Department of Revenue: Individual Income Tax FAQs: The $10,000 exempt amount and the joint-return treatment (the FAQ still names an older 4.4% rate).
• Tax Foundation: State Individual Income Tax Rates and Brackets, 2026: The 4% rate for 2026 and the deduction and exemption amounts.