Mississippi Governor Signs Bill To Eliminate Income Tax – Learn What That Means
on Apr 02, 2025
Governor Tate Reeves Signs A Historic Tax Bill That Could Change The Financial Future Of Mississippi Residents
Governor Tate Reeves of Mississippi recently signed a new bill into state law titled House Bill 1, or the “Build Up Mississippi Act.”
This new measure aims to gradually eliminate the individual income tax in Mississippi, joining states like Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming, all of which do not impose a state income tax on their residents.
On Governor Tate Reeves’ official website, he shared,
“I am proud to sign into law a complete elimination of the individual income tax in the state of Mississippi.”
He then continued on to discuss how this could affect Mississippi and his vision for the new bill, saying:
“Let me say that again: Mississippi will no longer tax the work, the earnings, or the ambition of its people. The legislation I’m signing today puts us in a rare class of elite, competitive states. There are only a handful of states in the country that do not tax income. Today, Mississippi joins their ranks – and in doing so, we plant our flag.”
Watch Reeves discuss the new bill on Fox News below.
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What Does This Mean Practically For Mississippi Residents?
This bill will not immediately reduce the state’s tax; instead, it will gradually decrease over time. It is projected to decrease the state individual income tax to 3% by 2030.
According to Gov. Reeves,
The new legislation, House Bill 1, cuts the individual income tax rate to 3% by calendar year 2030, with future annual decreases until it ultimately falls to 0%.
In addition to the state tax cut, the bill drops the grocery tax from 7%, which is the highest in the nation, to 5%.
Governor Tate Reeves shared this message with the residents of Mississippi:
“The work of your hands belongs to you. It is yours – to feed your family and invest in your home and your community. Because that’s what this is ultimately about. Not just numbers on a balance sheet, but lives. Generations from now, when our kids are raising families of their own in a stronger, more prosperous Mississippi, they will look back on this moment and say: this is when we took our shot. To the people of Mississippi: you are the real winners today.”
