What is the Mississippi state income tax rate in 2026?
Mississippi taxes income at 0% on the first $10,000 of taxable income ($10,000 for a married couple filing jointly) and 4.00% above it in 2026. Example: a married couple, both 70, with $40,000 of Social Security, a $30,000 private pension and $30,000 of IRA withdrawals ($100,000 in all; the pension and IRA money split evenly between them) owes $0 of Mississippi income tax (0.0% of their income) and $5,087 of federal tax; a single 62-year-old with $24,000 of Social Security, an $18,000 pension and $18,000 of IRA withdrawals ($60,000 in all) owes $0 to Mississippi and $4,111 federal. The schedule, how Mississippi treats each kind of retirement income, and its local taxes follow.
| Rate | Single | Married filing jointly |
|---|---|---|
| 0.00% | $0 to $10,000 | $0 to $10,000 |
| 4.00% | over $10,000 | over $10,000 |
How Mississippi taxes retirement income in 2026
| Standard deduction or personal exemption | $2,300 single, $4,600 married filing jointly, $3,400 head of household. Personal exemption, subtracted in addition: $6,000 single, $12,000 MFJ, $9,500 head of household. (Mississippi Department of Revenue; rules) |
|---|---|
| Social Security | Social Security benefits are fully exempt: none of the federally taxable amount enters the state base. (Mississippi Department of Revenue; rules) |
| Pensions, annuities and IRA/401(k) withdrawals | Pension and annuity distributions are fully excluded at any age (read as paid after the plan's retirement requirements were met). IRA/401(k) distributions are fully excluded at age 60 or older; below that age they are taxed as ordinary income. No dollar cap and no income limit. (Mississippi Department of Revenue; rules) |
| Age 65 and older | At age 65 or older: $1,500 is subtracted from the base ($3,000 for a married couple filing jointly when both qualify), against any income. (Mississippi Department of Revenue; rules) |
| Capital gains | Net long-term gain is taxed as ordinary income. Short-term gains are ordinary income. (Mississippi Department of Revenue; rules) |
Local income taxes: none in Mississippi. The local income taxes the tax engine computes for 2026 are in Delaware, Indiana, Iowa, Kentucky, Maryland, Michigan, Missouri, New York, Ohio, Oregon and Pennsylvania.
Your whole 2026 return in Mississippi, federal and state together, ends in a refund or an amount owed: 2026 tax return calculator (free) → What five typical retiree households owe or get back in Mississippi and every other state: the 2026 tax return study.
Figures for 2026 from QuantCalc’s open tax engine (federal 2.3.2, state 1.14.2), for a full-year resident. An estimate, not tax advice: credits, itemized deductions and rules this page does not ask about change a real return. Every Mississippi rule with its official sources: Mississippi rules and sources.
In our 510,000-path Monte Carlo study of 30-year retirement outcomes, Mississippi retirees finished at 76.51% success rate (ranked #5 of 51 by success rate, #5 of 51 by lowest median lifetime state tax). Median 30-year state-tax cost: $0. Median terminal balance after 30 years: $987,119. State tax is part of the optimization here — the playbook below shows the federal-state-ACA stack.
The MS verdict
For a retiree planning withdrawals in 2026, Mississippi is broadly retirement-tax-friendly, with most distributions sheltered. Exempts all qualified retirement income — 401(k), ira, pension and social security.
Mississippi exempts qualified retirement income from age 60 — pensions, 401(k) and IRA distributions alike — so a withdrawal costs $0 in state income tax, and a conversion out of one of those accounts is treated the same way. The binding constraints on a Mississippi conversion ladder are the federal bracket, the 400% FPL ACA cliff and the IRMAA two-year lookback, not the state rate.
Worked example: $30k Roth conversion in Mississippi
Consider a married couple age 58 in Mississippi with $75,000 of ordinary income (their MAGI), both on ACA Marketplace coverage. They want to convert $30,000 from a traditional IRA to a Roth. The Mississippi state tax on that conversion is approximately $1,200 — the full amount is taxed at 4.00%. Federal income tax adds another $3,600 — the whole conversion is taxed in the federal 12% bracket. And because the conversion pushes their MAGI to $105,000 — over the 400% FPL cliff of $84,600 — they lose their full ACA premium tax credit, $24,207 a year at Mississippi's average benchmark Silver premium. Total cost of the $30,000 conversion: about $29,007, or an effective 96.7% marginal rate. That state figure uses Mississippi's top bracket rate, so read it as a ceiling: a household whose income lands in a lower bracket pays less, and Mississippi's own deductions reduce it further. The federal-state-ACA stack matters in Mississippi.
Cost breakdown
| Component | Amount |
|---|---|
| Federal income tax (12% bracket) | $3,600 |
| Mississippi state income tax | $1,200 |
| ACA premium tax credit clawback | $24,207 |
| Total cost on $30,000 conversion | $29,007 (96.7% effective) |
Scenario B (friendly): $50k post-65 conversion in Mississippi
A married Mississippi couple age 67, both on Medicare, with $40K pension income converts $50,000 in a single year. State tax owed: $0 — Mississippi exempts qualified retirement income, and a conversion is a distribution from a qualified account. Federal income tax added: $4,607 ($7,500 of the added income fills deductions their pension left unused and the rest is taxed in the federal 10%–12% brackets). No ACA clawback (on Medicare). Total: $4,607, or 9.2% effective. The post-65 conversion window is where a Mississippi ladder is cheapest.
What the Monte Carlo data says about Mississippi
QuantCalc Research ran a 30-year, 10,000-path Monte Carlo simulation for an identical representative retiree (age 60, $2M starting balance, 60/40 portfolio, $80K real annual spend) in each of the 51 U.S. jurisdictions. Here's how Mississippi compared to the best- and worst-case states:
| Metric | Mississippi | Wyoming (best) | California (worst) |
|---|---|---|---|
| 30-year success rate | 76.51% | 77.11% | 69.03% |
| Rank (of 51) | #5 | #1 | #51 |
| Median lifetime state tax (30y) | $0 | $0 | $154,980 |
| Median total tax (30y) | $218,400 | $218,400 | $373,380 |
| Median terminal balance | $987,119 | $999,751 | $695,612 |
| Δ success vs Wyoming | -0.60 pp | — | −8.08 pp |
Sources: QuantCalc 51-State Monte Carlo Study (2026-05-12) — 510,000 total paths, methodology fully documented and dataset released CC-BY-4.0. Mississippi's row in the dataset uses the same portfolio + spend + retirement age as every other state — the only variable is state tax treatment.
How Mississippi treats capital gains in retirement
Mississippi exempts capital gains from sale of authorized Mississippi-based business stock; other LTCG is taxed at the flat 4.00% rate.
Why the ACA cliff hits hard in Mississippi
The 400% federal-poverty-level cliff is federal, not state-specific — but its dollar impact depends on the benchmark Silver-plan premium in your county. Mississippi's Marketplace pricing and your household composition determine the size of the subsidy at risk. A couple aged 58 with MAGI of exactly $84,600 still has $23,251 a year of premium tax credit at Mississippi's average benchmark Silver premium, and all of it is on the line. With the 2021–2025 enhanced credit expired, $1 of additional MAGI above 400% FPL eliminates the entire credit.
For 2026 the 400% FPL threshold is:
- Household of 1: $62,600
- Household of 2: $84,600
- Household of 3: $106,600
- Household of 4: $128,600
Roth conversion strategy for Mississippi
The MS-specific playbook depends on tier:
- Identify your cliff distance. Compute MAGI from all income sources (wages, capital gains, interest, dividends, traditional withdrawals). Find your headroom under 400% FPL. Use the live cliff widget above for a quick check.
- Stay under the cliff if you can. In Mississippi at 4.00%, the marginal cost of going over the cliff is federal tax + state tax + full PTC clawback. The break-even conversion size is smaller than in tax-free states.
- If you must go over, convert big. Once you've crossed the cliff, additional conversion dollars only cost federal + state tax (no incremental PTC loss). A "rip the bandage" conversion year can be efficient if you have many traditional dollars to move.
- Coordinate with capital gains and the 0% LTCG bracket. Mississippi exempts capital gains from sale of authorized Mississippi-based business stock; other LTCG is taxed at the flat 4.00% rate.
- Plan ahead for IRMAA. The IRMAA Medicare premium surcharge has a 2-year lookback. A Mississippi resident in their early 60s converting today will see IRMAA implications at 65. See RMD + IRMAA calculator for the lookback math.
State tax basics for Mississippi retirees
| Question | Mississippi |
|---|---|
| State income tax | 4.00% top marginal |
| Number of brackets | 2 |
| Social Security taxed | No |
| 401(k) / Traditional IRA taxed | No / exempt |
| Retirement-income exclusion (couple) | Full exemption |
| Roth conversion draws that exclusion | Not applicable |
| State estate / inheritance tax | No |
| Retirement-friendliness tier | friendly |
| Notable feature | exempts all qualified retirement income — 401(k), IRA, pension and Social Security |
| 30-yr MC success rate (rank) | 76.51% (#5/51) |
| Median 30-yr state tax | $0 |
Model your full Mississippi retirement scenario
Free Monte Carlo (100 paths per run; 10,000 with PRO) with state-specific tax engine, ACA cliff, Roth conversion optimizer, IRMAA lookback — free, no signup.
Run a free simulation →What a year-end move does to your Mississippi and federal tax in 2026
Each move changes three bills at once: the federal return, the Mississippi return and, for anyone on Medicare, the IRMAA surcharge the 2026 income sets for 2028. Example: a married couple, both 72, with a $40,000 pension, $50,000 of Social Security, a $30,000 IRA withdrawal and $10,000 of long-term gains already realized in 2026, the pension, the IRA money and the conversion split evenly between them on the state return. Each row is that year with one move made, against the same year without it (negative = less tax).
| Move (by December 31, 2026) | Federal tax | Mississippi tax | IRMAA in 2028 |
|---|---|---|---|
| Convert $25,000 to a Roth IRA | $3,165 | $0 | $0 |
| Send $10,000 of the IRA withdrawal to charity as a QCD | −$1,200 | $0 | $0 |
| Harvest a $5,000 loss against the year's gains | $0 | $0 | $0 |
An estimate from QuantCalc’s open tax engine (federal 2.3.2, state 1.14.2) for the 2026 tax year. Not tax advice: your return depends on facts this page does not ask about, so check a move with your tax preparer or custodian before acting. IRMAA uses the 2026 tiers for two people on Medicare; the 2028 tiers are not published yet. How the engine computes each line, with its official source: federal, Mississippi.
Related calculators and reading
- All-states retirement tax comparison — see Mississippi alongside the other 50 jurisdictions.
- State Retirement Tax Data 2026 — the per-jurisdiction rate, exclusion and Social Security figures behind this page, as CSV and JSON.
- ACA Subsidy Cliff Optimizer — find the largest Roth conversion that keeps you under 400% FPL.
- Roth Conversion Optimizer — bracket-fill vs. fixed-amount strategy comparison.
- RMD + IRMAA Calculator — Medicare premium surcharge based on 2-year-old MAGI.
- Safe Withdrawal Rate Calculator — sequence-of-returns-aware withdrawal planning.
- Research: 51-State 30-year Monte Carlo (2026) — full ranking and dataset.
- Research: Monte Carlo ACA Cliff 2026 — 80,000-path study of the cliff cost.
FAQ
What is the Mississippi state income tax rate in 2026?
Mississippi taxes income at 0% on the first $10,000 of taxable income ($10,000 for a married couple filing jointly) and 4.00% above it in 2026. The full schedule and Mississippi's deductions are on this page (Mississippi Department of Revenue; rules).
How much state income tax does a retiree pay in Mississippi?
It depends on the kind of income. In 2026, a married couple, both 70, with $40,000 of Social Security, a $30,000 private pension and $30,000 of IRA withdrawals ($100,000 in all; the pension and IRA money split evenly between them) owes $0 of Mississippi tax, and a single 62-year-old with $24,000 of Social Security, an $18,000 pension and $18,000 of IRA withdrawals ($60,000 in all) owes $0. Federal tax comes on top: $5,087 and $4,111.
Does Mississippi tax Social Security benefits?
No. Social Security benefits are fully exempt: none of the federally taxable amount enters the state base. (Mississippi Department of Revenue; rules)
Does Mississippi tax pensions, 401(k) and IRA withdrawals?
Pension and annuity distributions are fully excluded at any age (read as paid after the plan's retirement requirements were met). IRA/401(k) distributions are fully excluded at age 60 or older; below that age they are taxed as ordinary income. No dollar cap and no income limit. (Mississippi Department of Revenue; rules)
Does Mississippi have local income taxes?
No. No county, city or school district in Mississippi levies an income tax that the tax engine computes for 2026.
Does Mississippi tax Roth conversions?
Mississippi taxes Roth conversions as ordinary income at the state level. A $30,000 conversion by a couple aged 58 costs about $1,200 in state tax alone — the full amount is taxed at 4.00% — on top of federal tax and any ACA subsidy clawback. That state figure uses Mississippi's top bracket rate, so read it as a ceiling: a household whose income lands in a lower bracket pays less, and Mississippi's own deductions reduce it further.
What is Mississippi's 30-year Monte Carlo retirement success rate?
In QuantCalc's 510,000-path Monte Carlo study, a representative retiree in Mississippi (age 60, $2M balance, 60/40 portfolio, $80K real spend) finished 30 years at 76.51% success rate — ranked #5 of 51 jurisdictions. Median 30-year state tax: $0. Median terminal balance: $987,119.
What is the ACA cliff in Mississippi for 2026?
The ACA premium-tax-credit cliff is a federal threshold, not state-specific. For a household of two in 2026, it sits at 400% of the federal poverty level — $84,600. Crossing it by even $1 of MAGI eliminates the full subsidy now that the 2021-2025 enhanced credit has expired.
Is Mississippi a good state to retire for tax purposes?
Mississippi is broadly retirement-tax-friendly, with most distributions sheltered. Exempts all qualified retirement income — 401(k), ira, pension and social security. In our Monte Carlo ranking it placed #5 of 51 jurisdictions.
Does Mississippi have a state estate or inheritance tax?
No — Mississippi does not impose a state-level estate or inheritance tax.
How does Mississippi tax capital gains?
Mississippi exempts capital gains from sale of authorized Mississippi-based business stock; other LTCG is taxed at the flat 4.00% rate.
Last updated 2026-10-02. State income tax figures reflect the 2026 schedule published by Mississippi's tax authority. ACA poverty-level figures: the 2025 HHS poverty guidelines for the 48 contiguous states and DC ($15,650 for one person, plus $5,500 for each additional person; 90 FR 5917), which set 2026 Marketplace coverage. Premium tax credit estimates use Mississippi's average benchmark Silver premium. Monte Carlo numbers from the QuantCalc 51-state research drop (2026-05-12, CC-BY-4.0). This page is educational. Not tax, legal, or financial advice — consult a qualified advisor.