Mississippi House Passes Bill Phasing Out Income Tax Over Decade

The Mississippi House of Representatives passed a bill to phase out the state income tax over a decade.

The legislation, House Bill 1, passed out of the Republican-controlled House on Thursday by a vote of 88-24. It reduces the 4% income tax rate to 3% in 2027, and then gradually cuts the tax by .3% until it’s fully eliminated in 2037.

The bill also:

• Lowers the state’s 7% grocery tax to 2.5% by 2036.
• Imposes a new 1.5% local sales tax that cities and counties can opt out of.
• Adds a 5% tax on gasoline, on top of ...