Mississippi retirement taxes at a glance (2026)
| State income tax | Flat 4%Mississippi taxes income over $10,000 at a flat 4% for 2026; the first $10,000 is not taxed. |
|---|---|
| Social Security | Not taxedMississippi does not tax Social Security. |
| Pensions | Not taxedPensions and annuities from qualified retirement plans are not taxed. |
| 401(k) and IRA withdrawals | Not taxedQualified IRA and 401(k) retirement distributions are exempt; early distributions may be taxed. |
| Government pensions | Not taxedPublic pensions from qualified plans are exempt. |
| Military retirement pay | Not taxedMilitary retirement pay is exempt. |
| Estate tax | No |
| Inheritance tax | No |
| Property tax help for seniors | Homeowners 65+ get an expanded homestead exemption covering the first $7,500; totally disabled homeowners and some veterans get a full state exemption. |
| Sales tax | General sales tax is 7%; groceries are taxed at 5%. |
Recent changes and good to know
- The rate fell from 4.4% (2025) to 4.0% (2026).
- 2025 HB 1 cuts the rate by 0.25 points a year to 3.75% (2027), 3.5% (2028), 3.25% (2029) and 3% (2030), with possible full repeal later if revenue targets are met.
How to lower your retirement taxes in Mississippi
- Mix your income sources. Roth IRA withdrawals are tax-free at the federal level and generally in Mississippi too, so a Roth conversion before retirement can cut state tax later. Try the Roth conversion calculator.
- Watch federal Medicare costs. Large IRA withdrawals can raise your Medicare premiums. Check the 2026 IRMAA brackets.
- Think about your heirs. See what your IRA will really cost your family with the Family Tax Rate calculator.
- Comparing states? These have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Frequently asked questions
Does Mississippi tax retirement income?
No for qualified retirement income: Mississippi exempts Social Security, pensions, IRAs and 401(k)s.
Does Mississippi tax Social Security?
Mississippi does not tax Social Security.
Does Mississippi tax pensions?
Pensions and annuities from qualified retirement plans are not taxed.
Does Mississippi tax 401(k) and IRA withdrawals?
Qualified IRA and 401(k) retirement distributions are exempt; early distributions may be taxed.
Does Mississippi tax military retirement pay?
Military retirement pay is exempt.
Sources (last verified 2026)
- HB 1 (As Sent to Governor), 2025 Regular Session — Mississippi Legislature (2025)
- Mississippi State Tax Guide — AARP (2026-03-18)
- State Individual Income Tax Rates and Brackets, 2026 — Tax Foundation (2026-02-17)
- Mississippi Decreases Income Tax Rate for 2026 — Bloomberg Tax (2025)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.