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Could Mississippi get rid of its state income tax? What Mid-South residents should know

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Could Mississippi get rid of its state income tax? What Mid-South residents should know


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The Mississippi House of Representatives passed a tax cut that would eliminate the state income tax among other measures.

There is uncertainty as to whether the Senate will pass the Bill, as leadership there is considering a different approach to tax cuts. House Bill 1, referred to as the Build Up Mississippi Act, would not go into effect until Fiscal Year 2027 if passed this year.

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Here’s what to know about the state’s income tax and what would come of HB 1.

Mississippi state income tax

House Bill No. 1, dubbed the Build Up Mississippi Act, passed with 88 votes. Of them, at least nine were Democrats and two were independents. There were 24 no votes, consisting only of Democrats.

If the Bill is passed by both committees, it would:

  • Eliminate $2.2 billion in income tax revenues over 10 years. The cut would become active once the state’s income tax is phased down to 4% by Fiscal Year 2027.
  • Reduce state sales tax on groceries from 7% to 2.5% while adjusting tax structure on other items to offset the costs.
  • Removes state sales tax diversions to municipalities and replaces it with a local-option 1.5% local sales tax. Cities will have the option to opt-out of this tax structure. Lamar said this will result in local tax revenue increases across the state.
  • Sales tax collected at 1.5% in counties will be diverted to road and bridge infrastructure needs at the county level.
  • Add a fuel sales tax of 5% on retail sale of gasoline. This would be in addition to the state fuel tax already imposed. Lamar said this would add $400 million to the state budget, and all of those additional funds would go to the Mississippi Department of Transportation for road and bridge projects.
  • The $80 million that was going to MDOT per year from gambling revenue will now be headed toward the Public Employee Retirement Systems of Mississippi to address a $25 billion deficit in future retirement benefits.
  • Establishes a “budget stabilization fund” that will act as a secondary rainy-day fund.

The bill, however, will not include an income tax cut for sex workers in Mississippi, who will be taxed at 5% of their income once the tax cut is fully phased in.

Before voting on the bill, several Democrats questioned whether the tax package would actually end up costing the state more money down the road and causing revenue shortfalls. They also questioned whether moving to a consumption-based economy would result in poorer people paying more money out of pockets because of increases in costs due to the new gas tax and sales tax model.

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After 2016 when the state passed several tax cuts, revenue shortfalls ensued, causing former Gov. Phil Bryant to make emergency budget cuts several times. Numerous county Mississippi State Department of Health County offices closed and state grant matches for federally funded infrastructure projects were put at risk.

Under the House plan, sales taxes excluding groceries would essentially amount to 8.5%, which still puts Mississippi at a lower sales tax than its neighbors. Mississippi has an average sales tax of 7.06% when combining state and local taxes.

Arkansas and Tennessee taxes

Arkansas has a state income tax between 2% and 4.40%. Depending on how much a person earns, they can pay more or less in taxes. Here, the sales tax is 6.5%. Combined, local and state sales taxes come out to be about 9.45% which makes it the third most expensive for sales tax. Arkansas’ grocery tax is 0.125% making it the lowest grocery tax of the 13 states that still have one.

Tennessee does not have a state income tax and is one of eight states to not have one. The sales tax in Tennessee is 7% but ends up being about 9.55% when coupled with local sales taxes. This makes Tennessee the second for most expensive sales taxes in the country behind Louisiana with 9.56%. The grocery tax is 4% in Tennessee making it the fifth most expensive state for groceries.



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Entergy: Customers in Mississippi saving $2 billion due to construction of data centers – SuperTalk Mississippi

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Entergy: Customers in Mississippi saving  billion due to construction of data centers – SuperTalk Mississippi


Electric power distribution company Entergy has announced that customers in Mississippi will save more than $2 billion on power bills due to data center projects in its service range.

Entergy Mississippi customers join those in Louisiana and Arkansas as the largest recipients of a broader $5 billion in savings. The company’s announcement comes after Amazon Web Services announced plans to build a pair of multi-billion-dollar data centers in Madison County and another in Warren County, along with AVAIO Digital settling on Rankin County as a data center destination.

While ratepayers in the areas where data centers are being constructed voiced concerns of bill hikes, Entergy Mississippi President and CEO Haley Fisackerly has maintained that the projects will have the opposite effect on the wallets of utility customers. Fisackerly added that having a big customer — like Amazon — helps offset the rising cost of powering homes, small businesses, and even healthcare facilities.

“When you don’t have growth, and 25% of your customers are below the national poverty level, affordability becomes a big concern,” Fisackerly said on MidDays with Gerard Gibert. “Just like any business or community, you need growth. You need economies of scale. By bringing in a large customer like AWS, they are bringing the volume we need, but they also bring in additional revenues that are going to allow us to invest more to improve reliability.”

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Not only is the money Entergy Mississippi is bringing in from data center owners helping customers save money, but it is also going toward major grid upgrades that consumers don’t have to subsidize, Fisackerly said. Efforts by the state legislature, Gov. Tate Reeves, and the Mississippi Public Service Commission paved the way for large companies constructing data centers to contribute to a $300 million “Superpower Mississippi” campaign by Entergy to modernize and improve power lines and systems.

These grid upgrades are expected to reduce power outages, which is a plus in a state prone to year-round inclement weather events, and make services more reliable for customers.

“These large technology customers will help pay the cost for needed power grid maintenance and upgrades that would otherwise have been borne by our existing customers,” Fisackerly continued. “During a rising cost environment, when we are having to replace two half-century-old power plants with new units, securing such relief right now is perfect timing for our residential and small commercial customers.”

Though concerns remain about the environmental impacts data centers will have on the area, along with the possible noise associated with powering them, officials contend that the affordability of utilities can be erased from the list of worries.

Entergy’s existing agreements with data center owners have been structured to benefit all ratepayers, while also protecting existing customers from risks, the company announced. The company included prepayment requirements, multi-year contract terms, credit and collateral requirements, and early termination penalties in contracts with data center owners to protect existing customers.

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Thompson defeats Turnage to highlight U.S. House primaries in Mississippi – SuperTalk Mississippi

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Thompson defeats Turnage to highlight U.S. House primaries in Mississippi – SuperTalk Mississippi


Political newcomer and Capitol Hill attorney Evan Turnage proved no match for longtime U.S. Rep. Bennie Thompson, who defeated him and one other challenger to earn the Democratic nomination for Mississippi’s 2nd Congressional District on Tuesday.

Some politicos thought Turnage – who went to Yale and later worked for some of Thompson’s Democratic colleagues, including Senate Minority Leader Chuck Schumer (D-N.Y.) – wouldn’t necessarily win but could make waves as one of the more viable candidates to challenge Thompson in recent years. However, that wasn’t the case as Thompson garnered approximately 85% of the vote when the race was called.

Democrat Evan Turnage, who is challenging Rep. Bennie Thompson, D-Miss., in the March primary, poses for a portrait in Jackson, Miss., Jan. 22, 2026. (AP Photo/Sophie Bates, File)

Thompson, 78, is seeking an 18th term. The civil rights leader who chaired the Jan. 6 Committee was first elected in 1993 and serves as a ranking member on the House Homeland Security Committee. He will face either Ron Eller or Kevin Wilson on the Republican side, a race yet to be called as of late Tuesday night, and independent Bennie Foster in November’s general.

All of Mississippi’s U.S. House seats are up for grabs this year.

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In the 1st Congressional District, Republican Rep. Trent Kelly ran unopposed, while civil rights attorney and University of Mississippi School of Law professor Cliff Johnson beat former state lawmaker Kelvin Buck in the Democratic primary. Libertarian challenger Johnny Baucom awaits Kelly and Johnson in the general.

In the 3rd Congressional District, both Republican Rep. Michael Guest and Democrat Michael Chiaradio ran unopposed. They will meet Libertarian Erik Kiehle in the general.

In the 4th Congressional District, Republican Rep. Mike Ezell had over 80% of the vote when his race was called against former Mississippi Department of Marine Resources officer and political staffer Sawyer Walters. State Rep. Jeffrey Hulum easily won the Democratic nomination over Paul Blackman and D. Ryan Grover. Ezell and Hulum will face independent Carl Boyanton in the general.

Arguably the most watched races of the night occurred in the state’s lone U.S. Senate seat in this year’s cycle. Republican Sen. Cindy Hyde-Smith had no problem with Ocean Springs doctor Sarah Adlakha, seeing her name bolded around 30 minutes after the polls closed. It wasn’t long after that when Lowndes County District Attorney Scott Colom was announced the winner of the Democratic primary over Priscilla Till and Albert Littell. Independent Ty Pinkins will meet Hyde-Smith and Colom in the general on Nov. 3.

The Associated Press contributed to this report.

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Mississippi First Congressional District Primary 2026: Live Election Results, Buck vs. Johnson

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Mississippi First Congressional District Primary 2026: Live Election Results, Buck vs. Johnson




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