Mississippi Axes the Tax: 🪓 Now That’s What We Call Income-ing Freedom 🗽

So here’s the scoop: as of 2025, Mississippi is the latest state to say “bye-bye” to income tax. That means people in Mississippi no longer have to pay a portion of their paycheck to the state government. It’s kind of like the state saying, “Keep your money, just don’t ask us to fix every pothole immediately.”

This makes Mississippi one of only 10 states in the U.S. with zero state income tax. Others on that list include places like Texas, Florida, and Tennessee—so Mississippi is joining a club known for sunshine, cowboy hats, and no tax day stress.

But don’t get too excited yet. No income tax doesn’t mean no taxes at all. The state still collects money through things like sales tax (aka: you buy something, and they take a slice). Mississippi’s sales tax is 7%, one of the highest in the country. So yeah, Uncle Sam may leave your paycheck alone, but he’s coming for your soda and sneakers.

Why do this? The goal is to attract more people and businesses to the state. If you can earn more and keep more, maybe you’ll stay—or move there. Lawmakers hope it’ll boost the economy like a shot of espresso to a sleepy Monday.

Still, critics say it may hit lower-income families harder, since they spend more of their income and get taxed more through sales.

Mississippi is betting big on a bold idea—no income tax, more spending, and (hopefully) more growth. Will it work? Time—and receipts—will tell.