Mississippi’s flat tax rate decreased for 2026, but its withholding formula as published by the state revenue department was otherwise unchanged from 2025.
The tax rate used in the 2026 withholding formula decreased to 4%, from 4.4%. The standard deductions were unchanged and the threshold that an employee must have at least $10,000 of taxable income to owe tax was also unchanged.
Under state law, the tax rate is currently scheduled to decrease by 0.25 percentage points in 2027 through 2029 until reaching 3% in 2030.
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