Mississippi Enacts Landmark Tax Reform
Governor Tate Reeves (R) signed House Bill 1 into law, setting Mississippi on a path to eliminating its income tax. “This is a generational shift,” Reeves said, placing the state among a select few without income taxes.
Key Changes:
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Income Tax Reduction: Flat rate drops from 4.4% in 2024 to 3% by 2030, with potential elimination starting in 2031 if revenue growth meets targets.
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Grocery Tax Cut: Sales tax on groceries drops from 7% to 5% in 2025.
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Infrastructure Funding: A phased 9-cent fuel tax increase will generate $200 million for roads and bridges.
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Public Employee Retirement: A new Tier 5 plan is introduced for future state workers, leaving current employees and retirees unaffected.
