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Income Tax Deal Reached on HB 531, The Mississippi Tax Freedom Act of 2022 Jackson, Miss. –
With signage of a Conference Report by House and Senate Conferees, a deal has been reached on The Mississippi Tax Freedom Act of 2022 and the elimination of the state personal income tax.
The agreement reached is one that both chambers feel confident will lead to further economic prosperity for the people of Mississippi.
Here are some key points of the plan:
● This will be the largest tax cut in Mississippi history – $525 Million per year by 2026.
● By 2023, Mississippi will allow filers to exempt more income from taxation than any other state with a personal income tax.
● By 2026, Mississippi will have the 5th-best marginal tax rate of any state with a personal income tax.
● The legislation calls for the plan to be examined by 2026 to determine the most rapid and prudent next steps to continue on the path to total personal income tax elimination.
● Effective tax year 2023, the 4% bracket is eliminated. Single filers earn the first $18,300 income tax-free, with married filers earning the first $36,600 income tax-free.
● The 5% bracket drops to 4.7% for 2024, 4.4% for 2025, and 4.0% for 2026.
● A single filer taking the standard deduction and earning $40,000 saves $417 per year. A married couple taking the standard deduction and earning $80,000 saves $834 per year
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