Income tax; rescind reduction of.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) DuPree

SENATE BILL NO. 2869

AN ACT TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO 1
RESCIND THE REDUCTION OF THE STATE INCOME TAX; TO REPEAL SECTION 2
27-7-5.1, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR THE 3
REDUCTION OF THE TAX ON ALL TAXABLE INCOME IN EXCESS OF 4
$10,000.00, UNDER CERTAIN CONDITIONS, BEGINNING IN 2031; AND FOR 5
RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 27-7-5, Mississippi Code of 1972, is 8
amended as follows: 9
27-7-5. (1) (a) Except as otherwise provided in this 10
section, there is hereby assessed and levied, to be collected and 11
paid as hereinafter provided, for the calendar year 1983 and 12
fiscal years ending during the calendar year 1983 and all taxable 13
years thereafter, upon the entire net income of every resident 14
individual, corporation, association, trust or estate, in excess 15
of the credits provided, a tax at the following rates: 16
(i) 1. Through calendar year 2017, on the first 17
Five Thousand Dollars ($5,000.00) of taxable income, or any part 18
thereof, the rate shall be three percent (3%); 19
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2. For calendar year 2018, on the first One 20
Thousand Dollars ($1,000.00) of taxable income there shall be no 21
tax levied, and on the next Four Thousand Dollars ($4,000.00) of 22
taxable income, or any part thereof, the rate shall be three 23
percent (3%); 24
3. For calendar year 2019, on the first Two 25
Thousand Dollars ($2,000.00) of taxable income there shall be no 26
tax levied, and on the next Three Thousand Dollars ($3,000.00) of 27
taxable income, or any part thereof, the rate shall be three 28
percent (3%); 29
4. For calendar year 2020, on the first Three 30
Thousand Dollars ($3,000.00) of taxable income there shall be no 31
tax levied, and on the next Two Thousand Dollars ($2,000.00) of 32
taxable income, or any part thereof, the rate shall be three 33
percent (3%); 34
5. For calendar year 2021, on the first Four 35
Thousand Dollars ($4,000.00) of taxable income there shall be no 36
tax levied, and on the next One Thousand Dollars ($1,000.00) of 37
taxable income, or any part thereof, the rate shall be three 38
percent (3%); 39
6. For calendar year 2022 and all taxable 40
years thereafter, there shall be no tax levied on the first Five 41
Thousand Dollars ($5,000.00) of taxable income; 42
(ii) On taxable income in excess of Five Thousand 43
Dollars ($5,000.00) up to and including Ten Thousand Dollars 44
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($10,000.00), or any part thereof, the rate shall be four percent 45
(4%); and 46
(iii) On all taxable income in excess of Ten 47
Thousand Dollars ($10,000.00), the rate shall be five percent 48
(5%). 49
(b) (i) For calendar year 2023 and all calendar years 50
thereafter, there shall be no tax levied under subparagraph (ii) 51
of paragraph (a) of this subsection on the taxable income of 52
individuals in excess of Five Thousand Dollars ($5,000.00) up to 53
and including Ten Thousand Dollars ($10,000.00), or any part 54
thereof; and 55
(ii) For calendar year 2024 and all calendar years 56
thereafter, the tax imposed under subparagraph (iii) of paragraph 57
(a) of this subsection upon all taxable income of individuals in 58
excess of Ten Thousand Dollars ($10,000.00), shall be at the 59
following rates: 60
1. For calendar year 2024, on such taxable 61
income, the rate shall be four and seven-tenths percent (4.7%); 62
2. For calendar year 2025, on such taxable 63
income, the rate shall be four and four-tenths percent (4.4%); and 64
3. For calendar year 2026, and all calendar 65
years thereafter, on such taxable income, the rate shall be four 66
percent (4%) * * *. 67
* * * 68
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(2) An S corporation, as defined in Section 27-8-3(1)(g), 69
shall not be subject to the income tax imposed under this section. 70
(3) A like tax is hereby imposed to be assessed, collected 71
and paid annually, except as hereinafter provided, at the rate 72
specified in this section and as hereinafter provided, upon and 73
with respect to the entire net income, from all property owned or 74
sold, and from every business, trade or occupation carried on in 75
this state by individuals, corporations, partnerships, trusts or 76
estates, not residents of the State of Mississippi. 77
(4) In the case of taxpayers having a fiscal year beginning 78
in a calendar year with a rate in effect that is different than 79
the rate in effect for the next calendar year and ending in the 80
next calendar year, the tax due for that taxable year shall be 81
determined by: 82
(a) Computing for the full fiscal year the amount of 83
tax that would be due under the rates in effect for the calendar 84
year in which the fiscal year begins; and 85
(b) Computing for the full fiscal year the amount of 86
tax that would be due under the rates in effect for the calendar 87
year in which the fiscal year ends; and 88
(c) Applying to the tax computed under paragraph (a) 89
the ratio which the number of months falling within the earlier 90
calendar year bears to the total number of months in the fiscal 91
year; and 92
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ST: Income tax; rescind reduction of.
(d) Applying to the tax computed under paragraph (b) 93
the ratio which the number of months falling within the later 94
calendar year bears to the total number of months within the 95
fiscal year; and 96
(e) Adding to the tax determined under paragraph (c) 97
the tax determined under paragraph (d) the sum of which shall be 98
the amount of tax due for the fiscal year. 99
SECTION 2. Section 27-7-5.1, Mississippi Code of 1972, which 100
provides for the reduction of the tax on all taxable income in 101
excess of Ten Thousand Dollars ($10,000.00), under certain 102
conditions, beginning in 2031, is repealed. 103
SECTION 3. This act shall take effect and be in force from 104
and after July 1, 2026. 105