The evidence
Income tax timeline
Less than a penny for the city. Not a penny more at checkout.
State leaders enacted a fixed, multi-year reduction in the individual income-tax rate. Municipal services would benefit from the same kind of scheduled, predictable planning.
The Partnership does not ask to slow, change, or reverse the income-tax reduction. It is shown here for one reason: it proves the State already plans major revenue on a long-range schedule — exactly the planning cities are asking for.
The fixed enacted schedule
House Bill 1 sets the individual income-tax rate for each tax year from 2026 through 2030. These rates apply to individual taxable income exceeding $10,000.
Actual
| Tax year | Rate |
|---|---|
| 2026 | 4.00% |
| 2027 | 3.75% |
| 2028 | 3.50% |
| 2029 | 3.25% |
| 2030 | 3.00% |
2026
- Rate
- 4.00%
2027
- Rate
- 3.75%
2028
- Rate
- 3.50%
2029
- Rate
- 3.25%
2030
- Rate
- 3.00%
- Source
- Mississippi House Bill 1, 2025 Regular Session, Section 1, amending Mississippi Code § 27-7-5.
- As of
- Enacted in the 2025 Regular Session; rates stated for tax years 2026 through 2030.
- Retrieved
- Definition
- Applies to individual taxable income exceeding $10,000. Statutory exclusions and separately treated categories are preserved.
- Rounding
- Rates as enacted, stated to two decimal places.
Download this table as CSV — Enacted individual income-tax rate, tax years 2026 through 2030
Reductions after 2030
Reductions after 2030 are conditional under the statutory revenue-and-reserve triggers. They are not part of the fixed schedule above, and they are shown separately here for that reason.
Under the enacted law, a reduction after 2030 happens only in a year when the statutory revenue-and-reserve conditions are met. No post-2030 reduction is scheduled in advance.
Source: Mississippi House Bill 1, 2025 Regular Session, Section 1, amending Mississippi Code § 27-7-5.
University Research Center analysis of HB 1
The University Research Center modeled the enacted reductions against a baseline. Its published findings include:
- Average modeled General Fund growth of 0.6 percent annually through FY2040 under HB 1, versus 3.3 percent in the baseline.
- General Fund growth continuing at a lower average rate through FY2040 under the enacted schedule — the reason municipal needs should be scheduled now, before future growth is fully committed.
- Modeled long-run gains of 0.3 percent real GDP, 0.3 percent employment, 0.4 percent personal income, and 0.8 percent population.
Projection
Forward-looking figure under stated assumptions. Not a reported or derived actual.
Modeled figures under stated assumptions, not reported collections. Percentages are as published by the University Research Center.
What this means for municipal planning
State leaders have placed income-tax reductions in a long-range fiscal schedule. Municipal services should receive the same kind of predictable planning before future revenue growth is fully committed.