Legislature sends tax relief bill to governor
A day after the House and Senate leaders came to an agreement on a tax relief proposal, both chambers overwhelmingly voted for the bill today.
House Bill 531, the Mississippi Tax Freedom Act of 2022, will lower the top marginal income tax rate from 5 percent to 4 percent over the next four years. The final bill passed the House 92-23 and the Senate 39-10.
The agreement phases in the more than $500 million tax cut over the next four years.
– In the first year, it would eliminate Mississippi’s current 4 percent bracket that currently applies to the first $5,000 in taxed income.
– In years two through four, it would reduce the rate that applies to all income over $10,000 from 5 percent down to 4 percent.
The end result would be a higher threshold before any taxes are owed and a lower, flat rate on all taxable income. When fully phased in, Mississippi will be one of just 10 states with a flat tax and will have the fourth lowest rate among the 41 states with an income tax.
The bill will soon head to Gov. Tate Reeves for his signature.