Homestead exemption; increase.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Johnson

SENATE BILL NO. 2826

AN ACT TO AMEND SECTION 27-33-3, MISSISSIPPI CODE OF 1972, TO 1
INCREASE THE MAXIMUM HOMESTEAD EXEMPTION FROM $7,500.00 TO 2
$20,000.00 OF THE ASSESSED VALUE OF THE HOMESTEAD PROPERTY; TO 3
AMEND SECTION 27-33-75, MISSISSIPPI CODE OF 1972, TO CONFORM; AND 4
FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 27-33-3, Mississippi Code of 1972, is 7
amended as follows: 8
27-33-3. In order to recognize and give effect to the 9
principle of tax-free homes as a public policy in Mississippi, to 10
encourage home building and ownership, and to give additional 11
security to family groups, it is hereby declared that homes 12
legally assessed on the land roll, owned and actually occupied as 13
a home by bona fide residents of this state, who are heads of 14
families, shall be exempt from the ad valorem taxes herein 15
enumerated, on not in excess of * * * Twenty Thousand Dollars 16
($20,000.00) of the assessed value including an area of land not 17
in excess of that specified hereinafter in this article. The 18
exemption from taxes shall be limited to the following: 19
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(a) All homeowners who are heads of families and who 20
qualify under the provisions of this article shall be exempt from 21
taxes levied in 1983 and payable in 1984 and from taxes levied in 22
1984 and payable in 1985 as follows: 23
(i) The ad valorem taxes levied by counties 24
pursuant to Section 27-39-329. Amounts so exempted shall not be 25
reimbursed by the state. 26
(ii) Ad valorem taxes levied for maintenance and 27
current expenses by or for a county as authorized by Section 28
27-39-303, but the levy for such purpose in any year for which 29
reimbursement is to be made shall not exceed the millage levied 30
for such purpose for the 1984 fiscal year; or a levy for county 31
roads or a road district as authorized by Section 27-39-305; or a 32
levy for constructing and maintaining all bridges and culverts as 33
authorized by Section 65-15-7, but the levy for either or both of 34
such purposes for which reimbursement is to be made shall not in 35
any event exceed seven (7) mills in any year; the levy for the 36
support of the total funding formula fund to produce the minimum 37
local ad valorem tax effort required of a school district by 38
Section 37-57-1, and the supplementary school district tax levy 39
for the support and maintenance of schools as authorized by 40
Section 37-57-105; provided, however, that the total of the levies 41
made under said Sections 37-57-1 and 37-57-105, which shall be 42
exempt under this article, shall be limited to twenty (20) mills 43
for any affected property area, and in the event the total of such 44
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levies should exceed twenty (20) mills for any affected property 45
area, the excess shall not be exempt under this article, and in 46
such case, the levy for the support of the total funding formula 47
shall have priority as an exempt levy; 48
(iii) Ad valorem taxes levied for the support and 49
maintenance of agricultural high schools within the limits and as 50
authorized by Section 37-27-3, and ad valorem taxes levied for the 51
support of community or junior colleges within the limits and as 52
authorized by subsection (2) of Section 37-29-141; provided, 53
however, that the exemption from taxation and reimbursement for 54
tax loss for agricultural high schools and community or junior 55
colleges, or any combination of same, shall not exceed three (3) 56
mills in any one (1) year for any one (1) county; 57
(iv) Ad valorem taxes levied for the support of 58
the total funding formula provided for in Sections 37-151-200 59
through 37-151-215 in a municipal separate school district to 60
produce the minimum local ad valorem tax effort required of such 61
municipal separate school district as authorized by Section 62
37-57-1, and the supplementary tax levy for the support and 63
maintenance of the schools of a municipal separate school district 64
as authorized by Section 37-57-105; provided, however, the total 65
of the levies made under said Sections 37-57-1 and 37-57-105 which 66
shall be exempt under this article shall be limited to fifteen 67
(15) mills for any affected property area, except in those special 68
municipal separate school districts as provided by Sections 69
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37-7-701 through 37-7-743, the total of the levies made under 70
Sections 37-7-739 and 37-57-105 for such special municipal 71
separate school district which shall be exempt under this article 72
shall not exceed twenty (20) mills, and in the event the total of 73
such levies should exceed fifteen (15) mills for any affected 74
property area, or twenty (20) mills in the case of a special 75
municipal separate school district, the excess shall not be exempt 76
under this article, and, in such case, the levy for the support of 77
the total funding formula in the municipal separate school 78
district shall have priority as an exempt levy; 79
(v) In the event any law referred to in this 80
section is amended so as to authorize an increase in the tax levy 81
for any purposes, such increase in the levy shall be applied to 82
and taxes collected from the property owners on the entire 83
assessed value of exempted homes; and the tax loss resulting from 84
such increase shall not be reimbursed under the provisions of the 85
Homestead Exemption Law, unless such law clearly specifies that 86
the exempted assessed value of homes is exempt from such increase; 87
(vi) Ad valorem taxes levied under Sections 88
65-15-7 and 65-15-21 shall be used solely for purposes levied. 89
(b) Those homeowners who qualify for the exemptions 90
provided for in subsection (a) of this section and who have 91
reached the age of sixty-five (65) years on or before January 1 of 92
the year for which the exemption is claimed; and 93
service-connected, totally disabled American veterans who were 94
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honorably discharged from military service, upon presentation of 95
proper proof of eligibility shall be exempt from any and all ad 96
valorem taxes, including the forest acreage tax authorized by 97
Section 49-19-115, on homesteads not in excess of * * * Twenty 98
Thousand Dollars ($20,000.00) of assessed value thereof; provided, 99
however, that property owned jointly by husband and wife and 100
property owned in fee simple by either spouse shall be eligible 101
for this exemption in full if either spouse fulfills the age or 102
disability requirement. On all other jointly owned property the 103
amount of the allowable exemption shall be determined on the basis 104
of each individual joint owner's qualifications and pro rata share 105
of the property. 106
(c) Those homeowners who qualify for the exemptions 107
provided for in subsection (a) of this section and who would be 108
classified as disabled under the Federal Social Security Act (42 109
USCS Section 416(i)), upon presentation of proper proof of 110
eligibility shall be exempt from any and all ad valorem taxes, 111
including the forest acreage tax authorized by Section 49-19-115, 112
on homesteads not in excess of * * * Twenty Thousand Dollars 113
($20,000.00) of assessed value thereof; provided, however, that 114
property owned jointly by husband and wife and property owned in 115
fee simple by either spouse shall be eligible for this exemption 116
in full if either spouse fulfills the disability requirement. On 117
all other jointly owned property, the amount of the allowable 118
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exemption shall be determined on the basis of each individual 119
joint owner's qualifications and pro rata share of the property. 120
(d) Homeowners who qualify for exemption under 121
subsection (c) of this section will not be included in the 122
limitations of Section 27-33-59(e). 123
Reimbursement by the State of Mississippi to the various 124
taxing units for the tax losses incurred because of the additional 125
exemptions provided for under these subsections shall be made in 126
accordance with the procedures outlined in Section 27-33-41. 127
This section shall not apply to claims for homestead 128
exemptions filed in any calendar year subsequent to the 1984 129
calendar year. 130
SECTION 2. Section 27-33-75, Mississippi Code of 1972, is 131
amended as follows: 132
27-33-75. (1) Qualified homeowners described in subsection 133
(1) of Section 27-33-67 shall be allowed an exemption from ad 134
valorem taxes according to the following table: 135
ASSESSED VALUE HOMESTEAD 136
OF HOMESTEAD EXEMPTION 137
$ 1 - $ 150.............................................. $ 6.00 138
151 - 300.............................................. 12.00 139
301 - 450.............................................. 18.00 140
451 - 600.............................................. 24.00 141
601 - 750.............................................. 30.00 142
751 - 900.............................................. 36.00 143
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901 - 1,050.............................................. 42.00 144
1,051 - 1,200.............................................. 48.00 145
1,201 - 1,350.............................................. 54.00 146
1,351 - 1,500.............................................. 60.00 147
1,501 - 1,650.............................................. 66.00 148
1,651 - 1,800.............................................. 72.00 149
1,801 - 1,950.............................................. 78.00 150
1,951 - 2,100.............................................. 84.00 151
2,101 - 2,250.............................................. 90.00 152
2,251 - 2,400.............................................. 96.00 153
2,401 - 2,550.............................................. 102.00 154
2,551 - 2,700.............................................. 108.00 155
2,701 - 2,850.............................................. 114.00 156
2,851 - 3,000.............................................. 120.00 157
3,001 - 3,150.............................................. 126.00 158
3,151 - 3,300.............................................. 132.00 159
3,301 - 3,450.............................................. 138.00 160
3,451 - 3,600.............................................. 144.00 161
3,601 - 3,750.............................................. 150.00 162
3,751 - 3,900.............................................. 156.00 163
3,901 - 4,050.............................................. 162.00 164
4,051 - 4,200.............................................. 168.00 165
4,201 - 4,350.............................................. 174.00 166
4,351 - 4,500.............................................. 180.00 167
4,501 - 4,650.............................................. 186.00 168
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4,651 - 4,800.............................................. 192.00 169
4,801 - 4,950.............................................. 198.00 170
4,951 - 5,100.............................................. 204.00 171
5,101 - 5,250.............................................. 210.00 172
5,251 - 5,400.............................................. 216.00 173
5,401 - 5,550.............................................. 222.00 174
5,551 - 5,700.............................................. 228.00 175
5,701 - 5,850.............................................. 234.00 176
5,851 - 6,000.............................................. 240.00 177
6,001 - 6,150.............................................. 246.00 178
6,151 - 6,300.............................................. 252.00 179
6,301 - 6,450.............................................. 258.00 180
6,451 - 6,600.............................................. 264.00 181
6,601 - 6,750.............................................. 270.00 182
6,751 - 6,900.............................................. 276.00 183
6,901 - 7,050.............................................. 282.00 184
7,051 - 7,200.............................................. 288.00 185
7,201 - 7,350.............................................. 294.00 186
7,351 * * * - 7,500........................................ 300.00 187
7,501 - 7,650.............................................. 306.00 188
7,651 - 7,800.............................................. 312.00 189
7,801 - 7,950.............................................. 318.00 190
7,951 - 8,100.............................................. 324.00 191
8,101 - 8,250.............................................. 330.00 192
8,251 - 8,400.............................................. 336.00 193
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8,401 - 8,550.............................................. 342.00 194
8,551 - 8,700.............................................. 348.00 195
8,701 - 8,850.............................................. 354.00 196
8,851 - 9,000.............................................. 360.00 197
9,001 - 9,150.............................................. 366.00 198
9,151 - 9,300.............................................. 372.00 199
9,301 - 9,450.............................................. 378.00 200
9,451 - 9,600.............................................. 384.00 201
9,601 - 9,750.............................................. 390.00 202
9,751 - 9,900.............................................. 396.00 203
9,901 - 10,050............................................. 402.00 204
10,051 - 10,200............................................ 408.00 205
10,201 - 10,350............................................ 414.00 206
10,351 - 10,500............................................ 420.00 207
10,501 - 10,650............................................ 426.00 208
10,651 - 10,800............................................ 432.00 209
10,801 - 10,950............................................ 438.00 210
10,951 - 11,100............................................ 444.00 211
11,101 - 11,250............................................ 450.00 212
11,251 - 11,400............................................ 456.00 213
11,401 - 11,550............................................ 462.00 214
11,551 - 11,700............................................ 468.00 215
11,701 - 11,850............................................ 474.00 216
11,851 - 12,000............................................ 480.00 217
12,001 - 12,150............................................ 486.00 218
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12,151 - 12,300............................................ 492.00 219
12,301 - 12,450............................................ 498.00 220
12,451 - 12,600............................................ 504.00 221
12,601 - 12,750............................................ 510.00 222
12,751 - 12,900............................................ 516.00 223
12,901 - 13,050............................................ 522.00 224
13,051 - 13,200............................................ 528.00 225
13,201 - 13,350............................................ 534.00 226
13,351 - 13,500............................................ 540.00 227
13,501 - 13,650............................................ 546.00 228
13,651 - 13,800............................................ 552.00 229
13,801 - 13,950............................................ 558.00 230
13,951 - 14,100............................................ 564.00 231
14,101 - 14,250............................................ 570.00 232
14,251 - 14,400............................................ 576.00 233
14,401 - 14,550............................................ 582.00 234
14,551 - 14,700............................................ 588.00 235
14,701 - 14,850............................................ 594.00 236
14,851 - 15,000............................................ 600.00 237
15,001 - 15,150............................................ 606.00 238
15,151 - 15,300............................................ 612.00 239
15,301 - 15,450............................................ 618.00 240
15,451 - 15,600............................................ 624.00 241
15,601 - 15,750............................................ 630.00 242
15,751 - 15,900............................................ 636.00 243
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15,901 - 16,050............................................ 642.00 244
16,051 - 16,200............................................ 648.00 245
16,201 - 16,350............................................ 654.00 246
16,351 - 16,500............................................ 660.00 247
16,501 - 16,650............................................ 666.00 248
16,651 - 16,800............................................ 672.00 249
16,801 - 16,950............................................ 678.00 250
16,951 - 17,100............................................ 684.00 251
17,101 - 17,250............................................ 690.00 252
17,251 - 17,400............................................ 696.00 253
17,401 - 17,550............................................ 702.00 254
17,551 - 17,700............................................ 708.00 255
17,701 - 17,850............................................ 714.00 256
17,851 - 18,000............................................ 720.00 257
18,001 - 18,150............................................ 726.00 258
18,151 - 18,300............................................ 732.00 259
18,301 - 18,450............................................ 738.00 260
18,451 - 18,600............................................ 744.00 261
18,601 - 18,750............................................ 750.00 262
18,751 - 18,900............................................ 756.00 263
18,901 - 19,050............................................ 762.00 264
19,051 - 19,200............................................ 768.00 265
19,201 - 19,350............................................ 774.00 266
19,351 - 19,500............................................ 780.00 267
19,501 - 19,650............................................ 786.00 268
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19,651 - 19,800............................................ 792.00 269
19,801 - 19,950............................................ 798.00 270
19,951 and above........................................... 804.00 271
Assessed values shall be rounded to the next whole dollar 272
(Fifty Cents (50¢) rounded to the next highest dollar) for the 273
purposes of the above table. 274
One-half (1/2) of the exemption allowed in the above table 275
shall be from taxes levied for school district purposes and 276
one-half (1/2) shall be from taxes levied for county general fund 277
purposes. 278
(2) (a) Except as otherwise provided in this subsection, 279
qualified homeowners described in subsection (2) of Section 280
27-33-67 shall be allowed an exemption from all ad valorem taxes 281
on not in excess of * * * Twenty Thousand Dollars ($20,000.00) of 282
the assessed value of the homestead property. 283
(b) From and after January 1, 2015, qualified 284
homeowners described in subsection (2)(a) of Section 27-33-67 and 285
unremarried surviving spouses of such homeowners shall be allowed 286
an exemption from all ad valorem taxes on the assessed value of 287
the homestead property. 288
(c) Except as otherwise provided in this paragraph (c), 289
a qualified homeowner claiming an exemption under paragraph (a) of 290
this subsection shall be allowed an additional exemption from all 291
ad valorem taxes on an amount equal to the difference between (i) 292
the assessed value of the homestead property on January 1, 2018, 293
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or January 1 of the first year for which the qualified homeowner 294
claims an exemption for the homestead property under paragraph (a) 295
of this subsection, and (ii) any increase in the assessed value of 296
the homestead property resulting from a subsequent update in 297
valuation of the homestead property that is completed during the 298
time the qualified homeowner owns the property. In addition, if a 299
subsequent update in valuation of the homestead property that is 300
completed during the time the qualified homeowner owns the 301
property results in the assessed value of the homestead property 302
being less than the assessed value of the property on January 1, 303
2018, or January 1 of the first year for which the qualified 304
homeowner claims an exemption for the homestead property under 305
paragraph (a) of this subsection, then the exemption authorized 306
under this paragraph (c) shall be on an amount equal to the 307
difference between (i) such lower assessed value and (ii) any 308
increase in the assessed value of the homestead property resulting 309
from a subsequent update in valuation of the homestead property 310
that is completed during the time the qualified homeowner owns the 311
property. However, except for renovations, expansions, 312
improvements or additions to promote energy efficiency, safety or 313
access to the homestead property, the exemption authorized in this 314
paragraph (c) shall not apply to any portion of increase in the 315
assessed value of the homestead property that is attributable to 316
renovations, expansions or improvements of or additions to the 317
property during such time. For the purposes of this paragraph 318
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(c), an update in valuation of the homestead property occurs when 319
a county has completed an update in the valuation of Class I 320
property, as designated by Section 112, Mississippi Constitution 321
of 1890, in the county according to procedures prescribed by the 322
Department of Revenue and in effect on January 1, 2018, and for 323
which the Department of Revenue has certified that such new 324
valuations have been implemented for the purposes of ad valorem 325
taxation. 326
(d) From and after January 1, 2023, a qualified 327
homeowner who is the unremarried surviving spouse of a member of 328
the United States Armed Forces who was killed or died on active 329
duty, or of a member of a reserve component of the United States 330
Armed Forces or of the National Guard who was killed or died on 331
active duty for training, shall be allowed an exemption from all 332
ad valorem taxes on the assessed value of the homestead property. 333
(e) (i) From and after January 1, 2025, a qualified 334
homeowner who is an American veteran who has been honorably 335
discharged from military service and has reached ninety (90) years 336
of age on or before January 1 of the year for which the exemption 337
is claimed, shall be allowed an exemption from all ad valorem 338
taxes on the assessed value of the homestead property. 339
(ii) From and after January 1, 2026, a qualified 340
homeowner who is the unremarried surviving spouse of a homeowner 341
described in subparagraph (i) of this paragraph (e) shall be 342
allowed an exemption from all ad valorem taxes on the assessed 343
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value of the homestead property and unremarried surviving spouses 344
of homeowners classified as totally disabled under the federal 345
Social Security Act, Railroad Retirement Act, or any other federal 346
act approved by the Department of Revenue. 347
(3) Except as otherwise provided in this subsection, this 348
section shall apply to exemptions claimed in the 2001 calendar 349
year for which reimbursement is made in the 2002 calendar year and 350
to exemptions claimed for which reimbursement is made in 351
subsequent years. The exemption provided for in subsection (2)(b) 352
of this section shall apply to exemptions claimed in the 2015 353
calendar year for which reimbursement is made in the 2016 calendar 354
year and to exemptions claimed for which reimbursement is made in 355
subsequent years. The exemption provided for in subsection (2)(c) 356
of this section shall apply to exemptions claimed in the 2018 357
calendar year for which reimbursement is made in the 2019 calendar 358
year and to exemptions claimed for which reimbursement is made in 359
subsequent years. The exemption provided for in subsection 360
(2)(e)(i) of this section shall apply to exemptions claimed in the 361
2025 calendar year for which reimbursement is made in the 2026 362
calendar year and to exemptions claimed for which reimbursement is 363
made in subsequent years. The exemption provided for in 364
subsection (2)(e)(ii) of this section shall apply to exemptions 365
claimed in the 2026 calendar year for which reimbursement is made 366
in the 2027 calendar year and to exemptions claimed for which 367
reimbursement is made in subsequent years. 368
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ST: Homestead exemption; increase.
SECTION 3. This act shall take effect and be in force from 369
and after January 1, 2027. 370