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Mississippi governor signs bill eliminating state income tax
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Updated: 6:34 PM CDT Mar 27, 2025
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https://www.wapt.com/news-team/ca6397b4-f778-4a53-b23c-255f6c263d6e
JACKSON, Miss. —
Gov. Tate Reeves signed a bill into law that will eliminate the state income tax.
"We've fought hard to get this done for years, and it's finally happening," Reeves said on social media. "It will lead to more money in your pocket."
Earlier this month, the Mississippi House passed a Senate plan that would gradually eliminate the state income tax. Under the plan, the income tax will drop by 0.25% each year until 2030, when it reaches 3%. From that point on, the tax will drop gradually depending on the gap between the state's revenue and expenses until it is eventually eliminated entirely.

The proposal will also cut the grocery tax from its current 7%, the highest in the nation, to 5% in a one-time cut effective July 1.
To make up for the funding cut, the gas tax will gradually increase 9 cents from the current rate of 18 cents per gallon. It will then will increase to 27 cents by July 2027. After that, it could be further raised to help fund state road work.