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Mississippi House of Representatives votes to eliminate income tax

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The Mississippi State Capitol in Jackson (Photo by SuperTalk Mississippi News)

In what Representative Trey Lamar called a “historic” and “transformative” passage, the Mississippi House of Representatives has voted 96-12 to eliminate income tax.

The Mississippi Tax Freedom Act of 2022 will phase out the state’s income tax, raise the sales tax from 7% to 8.5%, and reduce grocery tax from 7% to 4%. The price of car tags will also be reduced by 50%.

“What this plan does is…if you make $40,000 a year, it’s going to put $1,300 a year in your pocket,” Representative Tom Miles explained on Wednesday morning. “If you’re a family—a husband and a wife making $80,000 a year—it’s going to put $2,600 a year in your pocket.”

Governor Tate Reeves previously said that the elimination of the state income tax will make Mississippi more competitive with the likes of Tennessee, Texas, and Florida.

Lt. Governor Delbert Hosemann is also in favor of a form of tax reduction, but whether or not his chamber will pass the House bill is unknown. According to The Clarion-Ledger, the Senate could draft their own tax plan.

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