JACKSON, Miss. – Governor Tate Reeves today signed historic legislation that eliminates the individual income tax in Mississippi. House Bill 1, or the “Build Up Mississippi Act,” empowers the state workforce by not taxing their hard-earned wages and gives Mississippi another competitive advantage when competing for new economic development projects and private capital investment.
“I am proud to sign into law a complete elimination of the individual income tax in the state of Mississippi,” said Governor Tate Reeves. “Let me say that again: Mississippi will no longer tax the work, the earnings, or the ambition of its people. The legislation I’m signing today puts us in a rare class of elite, competitive states. There are only a handful of states in the country that do not tax income. Today, Mississippi joins their ranks – and in doing so, we plant our flag.”
House Bill 1 builds upon House Bill 531, which was the biggest tax cut in Mississippi history at that time. House Bill 531 was signed into law by Governor Reeves in 2022 and returned half a billion dollars to taxpayers. The new legislation, House Bill 1, cuts the individual income tax rate to 3% by calendar year 2030, with future annual decreases until it ultimately falls to 0%. Additionally, the legislation signed by Governor Reeves decreases the tax on grocery sales from 7% to 5%.
By signing this legislation, Governor Reeves delivers on his promise to eliminate Mississippi’s individual income tax once and for all.
“This is more than a policy victory,” said Governor Reeves. “This is a transformation. And it’s a transformation that I have believed in, fought for, and worked toward for many years. From my days as lieutenant governor to my first campaign for this office – and every legislative session since – I have made this my mission. Because I believe in a simple idea: that government should take less so that you can keep more. That our people should be rewarded for hard work, not punished. And that Mississippi has the potential to be a magnet for opportunity, for investment, for talent – and for families looking to build a better life.”
Governor Reeves spoke directly to Mississippians during the press conference. Governor Reeves said: “The work of your hands belongs to you. It is yours – to feed your family and invest in your home and your community. Because that’s what this is ultimately about. Not just numbers on a balance sheet, but lives. Generations from now, when our kids are raising families of their own in a stronger, more prosperous Mississippi, they will look back on this moment and say: this is when we took our shot. To the people of Mississippi: you are the real winners today.”
Governor Reeves thanked legislators, including Speaker Jason White and Lieutenant Governor Delbert Hosemann, for their efforts on this legislation and for being good partners in the process.
House Bill 1 is yet another major victory for the state of Mississippi during the Reeves administration. This includes record levels of new private sector investment, the largest economic development projects in Mississippi history, and nation-leading education gains.
Governor Reeves signed House Bill 1 during a signing ceremony at the Mississippi Governor’s Mansion. The full signing can be viewed here.