TaxtirementState guides · MS
How Mississippi taxes retirement income
- Mississippi doesn't tax Social Security benefits.
- Exclusions and subtractions for retirement income (details below):
- Retirement income exemption.
- Rates for 2026: 0% to 4%, graduated.
At a glance
| Income tax | Yes |
|---|---|
| Rates (2026) | 0% to 4%, graduated |
| Starts from | Its own definition of income (not the federal return) |
| Standard deduction | $2,300 single, $4,600 married filing jointly |
| Personal exemption | $6,000 per person |
| Age 65 and older | $1,500 extra exemption per person |
| Social Security | Not taxed |
| Retirement income exclusions | 1 (see below) |
| Roth conversions | Generally not taxed (see below) |
| Capital gains | Taxed like other income |
| Local income tax | None |
Tax rates
Brackets apply to Mississippi taxable income. Other filing statuses are in the rules reference.
| Rate | Single: taxable income | Married filing jointly: taxable income |
|---|---|---|
| 0% | $0 to $10,000 | $0 to $10,000 |
| 4% | $10,000 and up | $10,000 and up |
Social Security
Mississippi doesn't tax Social Security benefits.
Pensions, IRAs and 401(k)s
Retirement income exemption
Unlimited. 'Social Security benefits, Railroad Retirement benefits, and retirement income from federal, state, and private retirement systems are exempt in total' once the recipient has met the plan's retirement requirements. IRAs, Keogh and similar tax-deferred plans are included ('optional retirement allowances'). NOT exempt: distributions taxable federally as early or excess distributions (Form 5329 — generally before age 59.5 absent an exception), separation pay, and deferred-compensation distributions received before meeting the plan's retirement age/service requirements. No age requirement beyond the plan's own retirement terms.
Roth conversions
Mississippi generally doesn't tax Roth conversions; the conditions are in the rules above.
Capital gains
Taxed like other income, at the rates above. . Certain gains on sale of qualifying ownership interests in Mississippi entities held 1+ year are exempt (Miss. Code 27-7-9(f)(10)); not relevant to typical portfolio gains.
More detail from our research notes
Mississippi computes its own gross income (Form 80-105 lists income items; Social Security and qualifying retirement income are simply not reported), then subtracts deductions and exemptions. 2026 rate: 0% on the first $10,000 of taxable income and 4.0% on the excess (2025: 4.4%; HB 1 of 2025 schedules 3.75% for 2027, 3.5% 2028, 3.25% 2029, 3% 2030, then trigger-based reductions toward 0%). Married couples: on a joint/combined return each spouse's taxable income is computed in its own column and the first $10,000 of EACH spouse's taxable income is taxed at 0% (DOR FAQ), so a two-earner couple effectively gets $20,000 at 0%; a one-income joint return gets only $10,000. Taxtirement should split joint taxable income by spouse. Exemptions: $6,000 single/MFS, $12,000 married (joint/combined; split equally if filing separately), $8,000 head of household; +$1,500 per dependent; +$1,500 each for taxpayer and spouse age 65+ or blind. Standard deduction: $2,300 single/MFS, $4,600 joint, $3,400 HOH (not indexed). Roth conversions: the converted amount is a retirement distribution; DOR guidance ties exemption to not being an early distribution, so conversions at 59.5+ (1099-R code 7) are generally treated as exempt retirement income and conversions before 59.5 are taxable — see verify.
Pending confirmation
These points were still being confirmed against Mississippi's published 2026 forms when this page was built. Most are waiting on forms the state publishes around the turn of the year.
2 items
- Age-65 extra exemption: confirm whether age is measured on Dec 31 (DOR page does not state the date).
- 2026 tax booklet (Form 80-100 instructions) not yet published (expected January 2027, https://www.dor.ms.gov/individual/forms-individual). 4.0% for 2026 and 3.75% for 2027 confirmed on the DOR Tax Rates page (re-fetched 2026-10-02), which also lists the unchanged exemptions ($6,000/$12,000/$8,000, $1,500 at 65+) and standard deductions ($2,300/$4,600/$3,400).
Sources
Every figure comes from these documents, mostly the state's own forms, instructions and statutes.
- HB 1 (2025, Build Up Mississippi Act) as sent to Governor: Miss. Code 27-7-5(1)(b) rates 4% (2026), 3.75% (2027), 3.5% (2028), 3.25% (2029), 3% (2030+) over $10,000; Sec. 2 revenue triggers from 2031. Local copyhttps://billstatus.ls.state.ms.us/documents/2025/pdf/HB/0001-0099/HB0001SG.pdf
- DOR Tax Rates page re-fetched 2026-10-02: 'Tax Year 2027 Excess of $10,000 of Taxable Income is taxed @ 3.75%'; exemptions and standard deductions. Local copy; Tax rates by year (2026 4% over $10,000), exemptions, 65+ exemption, standard deductionshttps://www.dor.ms.gov/individual/tax-rates
- 2025 resident instructions: HB 1 rate schedule 2027-2030, married filing joint vs combined, retirement income exempt in total, early distribution rule, capital gains, tax computation schedule (per-spouse $10,000)https://www.dor.ms.gov/sites/default/files/tax-forms/individual/80100251%202.pdf
- Individual income tax FAQ: retirement income, Social Security not taxed, $10,000 zero bracket per spouse on joint returnshttps://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions
- Schedule A itemized deductions (Form 80-108 Part I; 80-100 instructions p. 15: medical over 7.5% of federal AGI, taxes less state income tax with the $40,000 limitation, interest, charity)https://www.dor.ms.gov/sites/default/files/Forms/Individual/80108251.pdf
- Miss. Code § 27-7-15(4)(ff) (HB 1673 of 2010, still in the 2025 code): amounts converted from a traditional IRA to a Roth IRA are excluded from gross income at any agehttps://billstatus.ls.state.ms.us/documents/2010/pdf/HB/1600-1699/HB1673SG.pdf
Taxtirement's Mississippi calculation is also checked against a second, independent implementation on 1,000 random households. How we check our numbers.
See your own years. Taxtirement applies these Mississippi rules, and the federal and Medicare rules, to your household for every year of retirement, and shows the calculation behind each number. Coming November 2026 for iPhone, iPad and Mac.
This page summarizes Mississippi's 2026 rules as Taxtirement applies them, for education and planning. It isn't tax advice, and it doesn't cover every situation (for example part-year residents, businesses or military-only provisions). Rules change; check the state's current instructions, or a tax professional, before you act. Spotted something wrong? Tell us.