12 April 2022

Mississippi law gradually lowers individual income tax rates starting in 2023

On April 5, 2022, Governor Tate Reeves signed into law House Bill 531, which provides the largest individual income tax cut in the state's history by eliminating the current 4% tax bracket in 2023 and reducing the current 5% tax rate incrementally as follows:

  • 4.7% in 2024
  • 4.4% in 2025
  • 4.0% in 2026

Before 2026, the state legislature will determine if the tax rates will be further reduced or repealed for calendar years after 2026.

Mississippi does not allow for a flat rate of withholding on supplemental wages.

The Mississippi income tax withholding tables for 2022 are available here and frequently asked questions are here.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

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ATTACHMENT

EY Payroll News Flash

Document ID: 2022-0602