Mississippi has abolished its state income tax, joining Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Governor Tate Reeves (R) celebrated the move on social media, writing, “We did it, Mississippi! We just eliminated the income tax!”
Reeves said he was “proud to sign into law a complete elimination of the individual income tax in the state of Mississippi. Let me say that again: Mississippi will no longer tax the work, the earnings, or the ambition of its people.”
He noted that the effort is “more than a policy victory. This is a transformation.”
“Because I believe in a simple idea: that government should take less so that you can keep more. That our people should be rewarded for hard work, not punished. And that Mississippi has the potential to be a magnet for opportunity, for investment, for talent — and for families looking to build a better life,” he said. “The legislation I signed puts us in a rare class of elite, competitive states. There are only a handful of states in the country that do not tax income. Today, Mississippi joins their ranks — and in doing so, we plant our flag.”
“The work of your hands belongs to you. It is yours — to feed your family and invest in your home and your community,” Reeves added, going on to declare the income tax elimination as a “win for freedom” and a “win for families.”
The legislation will lower the income tax to 3% by 2030 and will decrease the tax further annually until it reaches 0%. The bill also decreases the tax on grocery sales from 7% to 5%.
