On February 21, 2026, Mississippi lawmakers announced a new tax reform bill aimed at increasing state revenue and streamlining the tax system. The proposed legislation, known as the Mississippi Tax Modernization Act, includes changes to individual and corporate taxes as well as sales and property taxes.One of the key provisions of the bill is a reduction in the individual income tax rate from 5% to 4.5% over the next five years. This decrease is expected to benefit lower and middle-income taxpayers, putting more money back into the pockets of Mississippi residents.In addition to the income tax cut, the bill also proposes a restructuring of the state's corporate tax system. Under the new plan, the corporate tax rate would be lowered from 5% to 4.25% in order to attract more businesses to the state and stimulate economic growth.Another significant component of the tax reform bill is the expansion of the sales tax base to include services such as legal and accounting services, landscaping, and personal training. This expansion is projected to generate an additional $100 million in revenue for the state annually.Furthermore, the bill includes a provision that would eliminate the state's inventory tax on businesses, which is seen as a barrier to economic development and job creation in Mississippi.Governor John Doe expressed his support for the tax reform bill, stating that it is necessary to make Mississippi's tax system more competitive and efficient. He emphasized the importance of balancing the state budget while also providing relief to taxpayers.The Mississippi Tax Modernization Act is currently being debated in the state legislature, with lawmakers on both sides of the aisle offering their input and suggestions. If passed, the bill is expected to have a significant impact on the state's finances and economy for years to come.