Mississippi Tax Changes 2026: A CPA Guide | HelloBooks Mississippi HB 1 phases the income tax rate down from 2027 and cut the grocery sales tax to 5% from July 1, 2025. Deadlines and disaster extensions.
Mississippi’s big change is a schedule rather than a single cut. HB 1 lowers the rate every year from 2027 and points toward 3% by 2030.
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Rate from 2030 (HB 1)
3%
Applies: Tax years 2025 to 2030From IRS.gov · checked October 10, 2026
DOR’s 2025 legislation page sets the rate on taxable income above $10,000 at 3.75% for 2027, 3.5% for 2028, 3.25% for 2029 and 3% from 2030. From 2031, further cuts can follow if the Working Cash-Stabilization Reserve Fund is full. The DOR FAQ describes the current rate as 4.4% on income above the exempt $10,000.
2025 individual returns were due April 15, 2026, with an extension to October 15, 2026 for filing only. Mississippi follows IRS disaster extensions; in 2026 that moved deadlines for affected counties to November 2, 2026 and to February 1, 2027.
Retail clients selling groceries should confirm their point-of-sale rates. See /us/sales-tax/mississippi.
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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