On March 27, 2025, Mississippi Governor Tate Reeves signed House Bill 1, the “Build Up Mississippi Act,” to incentivize taxpayers to stay in or relocate to Mississippi. The bill includes changes to individual income, grocery and gasoline taxes, as well as the Public Employees’ Retirement System (PERS).
Key points of the bill:
- Individual Income Tax
- Tax rate reduction for individual taxable income exceeding $10,000: decreasing to 3.75% in 2027, 3.5% in 2028, and 3% in 2030.
- Potential elimination of individual income tax after 2031 if certain revenue thresholds are met.
- Grocery Tax
- Reduction from 7% to 5%, starting July 1, 2025.
- Redistribution of collected taxes to local municipalities.
- Gasoline Tax
- Increases the excise tax on gasoline from 18¢ to 21¢ per gallon on July 1, 2025; 24¢ per gallon on July 1, 2026; and 27¢ per gallon on July 1, 2027.
- Redistribution of revenue to the Office of State Aid Road Construction, Strategic Multi-Modal Investments Fund, and Mississippi Department of Transportation.
- PERS
- Creation of a new tier for defined contributions.
- Closure of the current Operational Retirement Plan (ORP) program to new employees.
HORNE team members are happy to help with any questions you may have. Please reach out to your representative for guidance.
