State retirement taxes · 2026
Does Mississippi tax retirement income?
Short answer: Not on Social Security, pensions or IRA withdrawals. Mississippi does not tax Social Security benefits. All qualified retirement income — pensions, IRAs and 401(k)s — is exempt.
What’s taxed in Mississippi
2026 rules.
- Social SecurityNot taxed
- Mississippi does not tax Social Security benefits.
- PensionsNot taxed
- Qualified retirement income from public and private plans is fully exempt once you meet the plan’s retirement requirements.
- IRA & 401(k) withdrawalsNot taxed
- Qualified IRA and 401(k) distributions are exempt; early distributions are taxable.
- Military retirement payNot taxed
- Military retirement pay is exempt as federal retirement income.
- Income tax rate4% flat
- 0% on the first $10,000 of taxable income and 4.0% above for 2026 (4.4% in 2025).
Does Mississippi tax Social Security?
Mississippi does not tax Social Security benefits.
Mississippi does not tax Social Security or Railroad Retirement benefits.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Mississippi?
Qualified retirement income from public and private plans is fully exempt once you meet the plan’s retirement requirements.
Social Security, Railroad Retirement and retirement income from federal, state and private retirement systems are exempt in total. Early or excess distributions taxable under federal rules, deferred compensation paid before retirement and separation pay are taxable.
Public vs. private pensions: Treated the same: both exempt.
Are IRA and 401(k) withdrawals taxed in Mississippi?
Qualified IRA and 401(k) distributions are exempt; early distributions are taxable.
Early distributions subject to the federal early-withdrawal rules are not considered retirement income and may be taxed.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Mississippi?
Military retirement pay is exempt as federal retirement income.
What is Mississippi’s income tax rate?
A flat 4%.
0% on the first $10,000 of taxable income and 4.0% above for 2026 (4.4% in 2025). Already in law (HB 1, 2025): 3.75% in 2027, 3.5% in 2028, 3.25% in 2029 and 3% from 2030, with further cuts possible from 2031 if triggers are met.
Standard deduction and exemptions
Standard deduction: $2,300 single, $3,400 head of family, $4,600 joint. Exemption: $6,000 single, $9,500 head of family, $12,000 joint, $1,500 per dependent. These are set in law, not indexed.
What tax breaks do seniors get in Mississippi?
An extra $1,500 exemption for each filer 65+ (and $1,500 if blind), plus the full exemption of Social Security and qualified retirement income.
What changed for 2026?
HB 1 (2025) sets the rate path: 3.75% (2027), 3.5% (2028), 3.25% (2029), 3% (2030+), with possible further cuts from 2031. The Department’s FAQ still shows the 2025 rate of 4.4%.
The 2026 rate comes from the Department of Revenue’s withholding publication; cuts for 2027–2030 are already law.
How Mississippi compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- MississippiThis pageVery friendlySocial Security Not taxedTop rate: 4% flat
- AlabamaVery friendlySocial Security Not taxedTop rate: 5% top
- ArkansasFriendlySocial Security Not taxedTop rate: 3.7% top
- LouisianaFriendlySocial Security Not taxedTop rate: 3% flat
- TennesseeTax-free retirement incomeSocial Security Not taxedTop rate: None
State tax is half the picture — check the federal side
Mississippi retirement tax questions
Is Mississippi tax-friendly for retirees?
We rate Mississippi “Very friendly” for 2026. Mississippi does not tax Social Security benefits. All qualified retirement income — pensions, IRAs and 401(k)s — is exempt. The top income tax rate is 4%.
Are required minimum distributions (RMDs) taxed in Mississippi?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow Mississippi’s rules for those accounts. Qualified IRA and 401(k) distributions are exempt; early distributions are taxable.
Is military retirement pay taxed in Mississippi?
No. Military retirement pay is exempt as federal retirement income.
What is Mississippi’s income tax rate for 2026?
0% on the first $10,000 of taxable income and 4.0% above for 2026 (4.4% in 2025). Already in law (HB 1, 2025): 3.75% in 2027, 3.5% in 2028, 3.25% in 2029 and 3% from 2030, with further cuts possible from 2031 if triggers are met.
Sources for Mississippi
Primary sources only. We re-check them whenever an agency publishes new figures.
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