Bill > HB212

This bill proposes to gradually phase out the Mississippi state income tax on individual taxpayers by progressively reducing tax rates between 2024 and 2030. Starting in 2024, the tax rate on income over $10,000 will decrease from 5% to 4.7%, then to 4.4% in 2025, and continue declining annually: 4% in 2026, 3% in 2027, 2% in 2028, and 1% in 2029. By 2030, the bill eliminates the state income tax entirely for individual taxpayers on income exceeding $10,000, while maintaining the existing tax-free status for the first $5,000 of income. The legislation preserves the tax-free threshold for lower income brackets and does not impact S corporations, which remain exempt from state income tax. The bill is set to take effect on July 1, 2025, providing a methodical, multi-year approach to gradually reduce and ultimately eliminate state income tax for individuals. This approach allows for gradual fiscal adjustment and provides predictability for taxpayers and state budget planners by establishing a clear, incremental tax rate reduction schedule.

Budget and Finance

https://billstatus.ls.state.ms.us/2025/pdf/history/HB/HB0212.xml