Mississippi state income tax
Mississippi has a state income tax. It is flat, with a top marginal rate of 4%. 4% flat rate for calendar year 2026 on taxable income above a $10,000 exemption ($10,000 per taxpayer, so effectively $20,000 for married filing jointly). Under 2025 House Bill 1, the rate continues stepping down: 3.75% (2027), 3.5% (2028), 3.25% (2029), and 3% for 2030 and all years after. Further reductions beyond 2030 are contingent on the state hitting revenue-surplus triggers; the tax is only fully repealed if the rate is ever legislatively cut to 0%, which is not scheduled to happen by 2030. Capital gains are taxed as ordinary income (no special lower rate).
Does Mississippi have a state income tax?
Yes. Mississippi taxes individual income on a flat schedule topping out at 4%. 4% flat rate for calendar year 2026 on taxable income above a $10,000 exemption ($10,000 per taxpayer, so effectively $20,000 for married filing jointly). Under 2025 House Bill 1, the rate continues stepping down: 3.75% (2027), 3.5% (2028), 3.25% (2029), and 3% for 2030 and all years after. Further reductions beyond 2030 are contingent on the state hitting revenue-surplus triggers; the tax is only fully repealed if the rate is ever legislatively cut to 0%, which is not scheduled to happen by 2030.
| Item | Mississippi |
|---|---|
| State income tax | Yes, flat |
| Top marginal rate | 4% |
| Capital gains | Taxed as ordinary income, up to 4% |
| State sales tax | 7% (plus local) |
| Avg. property tax rate | 0.58% of home value |
| Estate / inheritance tax | None |
How does Mississippi tax capital gains?
Mississippi has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 4%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Mississippi?
Retirement income is taxed differently from wages in many states. For how Mississippi treats Social Security, pensions, and 401(k)/IRA withdrawals, see Mississippi retirement taxes.
Sources
- Mississippi income tax rates and brackets: Mississippi Department of Revenue / Taxation.
- Mississippi capital gains treatment: Mississippi tax authority.
- Mississippi sales tax: Mississippi Department of Revenue.