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On March 2, 2026, Mississippi Governor announced a new tax plan aimed at boosting state revenue and addressing budget deficits. The plan, which includes both increases and cuts in various taxes, is expected to generate an additional $100 million in revenue for the state.One of the key changes in the tax plan is an increase in the state sales tax from 7% to 8%. This increase is expected to generate an estimated $50 million in additional revenue annually. The Governor defended this decision, stating that the increase in sales tax is necessary to fund essential state services and infrastructure projects.Additionally, the tax plan includes a reduction in state income tax rates for lower-income individuals. Under the new plan, individuals earning less than $50,000 annually will see a 2% reduction in their income tax rates. This move is aimed at providing relief for working families and encouraging spending in the state.To offset the reduction in income tax rates, the plan also includes an increase in property taxes for high-income individuals and corporations. The Governor stated that the increase in property tax rates for these groups is necessary to ensure that the tax burden is distributed more evenly across all income levels.Overall, the tax plan is expected to create a fairer and more balanced tax system in Mississippi while increasing revenue for the state. The Governor believes that these changes will help to stabilize the state's finances and ensure the sustainability of essential services for all residents.The new tax plan will go into effect starting in the next fiscal year, and the state government will be working to ensure a smooth transition for taxpayers. Mississippi residents are encouraged to stay informed about these changes and consult with tax professionals to understand how they may be affected by the new tax plan.