In a groundbreaking move, Governor Tate Reeves has signed historic legislation eliminating the individual income tax in Mississippi, a decision that is sending shockwaves across the nation.
During a press conference on March 27, 2025, Governor Reeves announced the passage of House Bill 1, also known as the “Build Up Mississippi Act.” This landmark legislation empowers the state workforce by ceasing to tax their hard-earned wages, positioning Mississippi as a competitive contender 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 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 already the largest tax cut in Mississippi’s history when it was signed into law by Reeves in 2022, returning half a billion dollars to taxpayers. The new legislation reduces the individual income tax rate to 3% by 2030, with future annual decreases until it ultimately reaches 0%. Additionally, the bill lowers the tax on grocery sales from 7% to 5%.
“This is more than a policy victory,” Governor Reeves stated. “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 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.”
During the signing ceremony at the Mississippi Governor’s Mansion, Reeves emphasized the personal impact of this policy change, stating: “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.”
While many residents are thrilled about the financial relief, critics are raising concerns about potential budget shortfalls and the impact on essential public services. They worry that eliminating income tax could lead to cuts in education, healthcare, and infrastructure—areas crucial for community development.
As Mississippi embarks on this bold new chapter, the nation is watching closely. Will this sweeping tax reform lead to economic prosperity and growth, or will it compromise the state’s ability to fund necessary services?
What are your thoughts on this historic legislation? Do you believe eliminating income tax is the right move for Mississippi? Share your opinions in the comments below.
For more information, contact the Governor’s office at 601-359-3150 or email governor@govreeves.ms.gov. For media inquiries, please email press@govreeves.ms.gov.
