{"id":2417102,"date":"2025-03-28T11:09:01","date_gmt":"2025-03-28T15:09:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mississippi-eliminates-state-income-tax\/"},"modified":"2025-03-28T11:10:56","modified_gmt":"2025-03-28T15:10:56","slug":"mississippi-eliminates-state-income-tax","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mississippi-eliminates-state-income-tax\/","title":{"rendered":"Mississippi eliminates state income tax"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">10<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmississippi-eliminates-state-income-tax%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2417102&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Mississippi has officially eliminated its state income tax, following legislation signed by Governor Tate Reeves. This <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/politico-terrified-hegseth-will-make-military-schools-patriotic\/\" title=\"Politico Terrified Hegseth Will Make Military Schools &#039;Patriotic&#039;\">critically important change<\/a>, described by Reeves as a momentous occasion for generational change, is aimed at <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-american-families-plan-is-far-from-a-new-deal-economic-boon\/\" title=\"Biden\u2019s \u2018American Families Plan\u2019 Is Far From a New Deal Economic Boon\">fostering economic growth<\/a> by encouraging businesses and entrepreneurs to invest in the state. The legislation will phase out the income tax by reducing the current rate incrementally from 4% to 3% by 2031, contingent on certain economic growth performance indicators.<\/p>\n<p>Despite the enterprising goals, there are concerns about the potential impact on the state\u2019s budget, with estimates suggesting a loss of $2.6 billion from the current budget due to this tax elimination. Analysts warn that this could leave Mississippi vulnerable, especially given that the income tax comprises a substantial portion of the state\u2019s revenue. Critics highlight that this reform primarily benefits wealthier residents in a state that already struggles economically. Mississippi now joins the ranks of other states that do not impose individual income taxes.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Mississippi eliminates state income tax<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1768675\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>Gov. Tate Reeves (R-MS) signed <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/legislation\/\" target=\"_blank\" rel=\"noopener\" title=\"\">legislation<\/a> Thursday eliminating the state&rsquo;s income <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/taxes\/\" target=\"_blank\" rel=\"noopener\" title=\"\">tax.<\/a><\/p>\n<p>&ldquo;Today is a day that will be remembered not just for the headlines, not just for the politics, but for the profound generational change it represents,&rdquo; Reeves said at the bill signing. &ldquo;I must say, it feels like it&rsquo;s been a long time coming, but after many, many, many years of hard work, we can all stand together and say that we have <a href=\"https:\/\/amzn.to\/3YuVZYV\">accomplished income tax elimination<\/a> in the state of Mississippi.&rdquo;&nbsp;&nbsp;<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3361818\/core-inflation-rose-2-8-february-fed-preferred-gauge\/\">Core inflation rose to 2.8% in February in Fed&rsquo;s preferred gauge<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3360651\/april-supplemental-security-income-direct-payment-4-days\/\">April Social Security direct payment worth $967 goes out in 4 days<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3361659\/social-security-first-round-payments-april-12-days\/\">First round of April Social Security payments goes out in 12 days<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>Reeves shared that the legislation will be a catalyst for bringing businesses and entrepreneurs to the state.&nbsp;<\/p>\n<p>&ldquo;We are saying to entrepreneurs, to workers, to dreamers: Mississippi is open for business, and we will not penalize your success,&rdquo; Reeves said. &ldquo;We are going to compete, and we are going to win.&rdquo;&nbsp;<\/p>\n<p>A previous bill reduced the income tax rate to 4%, but this legislation will reduce it by .25% each year beginning in 2027. By 2031, the rate will reach 3%, and it will only be reduced further if certain revenue &ldquo;growth triggers&rdquo; are met.&nbsp;<\/p>\n<p>The stipulations around meeting economic growth targets before reducing the income tax further were enacted to ensure the state would be properly founded. The state&rsquo;s income tax makes up a third of its revenue.&nbsp;<\/p>\n<p>Neva Butkus, a senior analyst at the Institute on Taxation and Economic Policy, estimated the state will lose $2.6 billion from its current $7 billion&nbsp;budget as a result of phasing out the income tax.<\/p>\n<p>The tax cuts came as the Trump administration seeks to overhaul federal funding, cutting billions of dollars for social programs.&nbsp;&nbsp;<\/p>\n<p>&ldquo;What the state is essentially committing to is a very extreme and dramatic loss of revenue during a very tumultuous time during which the state might be reckoning with large federal cuts to social programs that many Mississippians rely on,&rdquo; Butkus <a href=\"https:\/\/mississippitoday.org\/2025\/03\/27\/gov-reeves-signs-typo-tax-overhaul-bill-into-law-to-phase-out-income-tax-trim-grocery-tax-and-raise-gasoline-tax\/\" target=\"_blank\" rel=\"noopener\" title=\"\">told <\/a><em>Mississippi Today<\/em>. &ldquo;And they&rsquo;re doing all of this while creating a windfall for the state&rsquo;s wealthiest residents in the poorest state in the union.&rdquo;&nbsp;<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/3154138\/trump-no-tax-overtime-proposal-what-to-know\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>TRUMP&rsquo;S &lsquo;NO TAXES ON OVERTIME&rsquo; PROPOSAL: WHAT TO KNOW<\/strong><\/a><\/p>\n<p>The legislation&rsquo;s phrasing essentially allows the tax cut to occur immediately, regardless of whether the state is on target for its &ldquo;economic triggers.&rdquo;<\/p>\n<p>Mississippi is now the 10th state not to levy individual income taxes, joining Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1768675\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1768675\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mississippi abolishes state income tax, says Gov. Reeves<\/p>\n","protected":false},"author":2542,"featured_media":2417103,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/03\/Tate-Reeves-.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[35077,38510,6632,52403,37919],"class_list":["post-2417102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-economic-impact","tag-fiscal-policy","tag-mississippi","tag-state-income-tax","tag-tax-reform"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/03\/Tate-Reeves-.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2417102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2542"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2417102"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2417102\/revisions"}],"predecessor-version":[{"id":2417106,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2417102\/revisions\/2417106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2417103"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2417102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2417102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2417102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}