Does Mississippi Tax Retirement Income?

No. Mississippi does not tax Social Security benefits.

Social Security and Railroad Retirement benefits are not taxed by Mississippi.

The Mississippi answer is separate from the federal one. Depending on combined income, up to 85% of Social Security benefits can be taxable on the federal return regardless of what Mississippi does, so the state rule changes the state line only. Our guide to states that do not tax Social Security shows where Mississippi sits among the states that still tax benefits.

No. Mississippi does not tax pension income.

Public and private pension income is exempt when the recipient has met the retirement-plan requirements for age or years of service. The exemption is based on the nature of the payment, not the size of the pension or the age of the retiree.

There is no separate retirement exclusion to compute because qualified retirement income never enters Mississippi taxable income. What the state does tax is wages, business income, interest, dividends, rental income, and early retirement withdrawals, with the first $10,000 of taxable income exempt and 4% on the rest for 2026 after a $6,000 single exemption and $2,300 standard deduction.

Public and private pensions, annuities, and retirement-plan distributions do not always get the same treatment. The pension comparison lists which states exempt pensions broadly, partly, or only for certain plans.

No. Mississippi does not tax traditional 401(k) and IRA withdrawals.

Qualified distributions from IRAs, 401(k)s, 403(b)s, and similar plans are exempt as retirement income. An early distribution, generally one reported with code 1 on Form 1099-R, is not treated as retirement income and is taxed at the regular rate.

Two timing points matter in Mississippi. A Roth conversion is taxable in the year it is done, and Mississippi starts from federal adjusted gross income, so a large conversion can land in a year when the state exclusion does not cover it. Qualified Roth withdrawals later are generally not taxable at either level. Required minimum distributions follow the same Mississippi rules as any other traditional-account withdrawal.

Every state page on this site runs the same retiree profile so the states can be compared: $30,000 of Social Security, $40,000 withdrawn from a traditional 401(k), and a $20,000 private pension, $90,000 in total.

A 68-year-old with $30,000 of Social Security, $40,000 from a 401(k), and a $20,000 private pension owes no Mississippi income tax on any of the $90,000 because all three streams are qualified retirement income. Only non-retirement income such as interest, rent, or wages would be taxed.

Mississippi begins with federal AGI of about $85,500 and removes the $25,500 of taxable Social Security, the $40,000 of qualified 401(k) withdrawals, and the $20,000 pension, leaving $0 of Mississippi taxable income and $0 of tax. Contrast: the same retiree taking a $150,000 lump-sum IRA distribution at age 68 still owes nothing, because a normal distribution after the plan's retirement age is qualified retirement income. The result flips for a 55-year-old who cashes out $150,000 before retirement age: after the $6,000 exemption and $2,300 standard deduction, roughly $141,700 is taxable, the first $10,000 is exempt, and the 4% rate produces roughly $5,300 of Mississippi tax.

The same $90,000 profile looks different a state line away. The rows below come from the reviewed 51-state table; each state name links to its own guide.

• Tennessee: has no individual income tax at all.
• Alabama: treats Social Security as exempt, pensions as often exempt, and 401(k) and IRA withdrawals as partially taxed, with a top rate of 5.00% and $6,000 account exclusion at age 65+.
• Louisiana: treats Social Security as exempt, pensions as partially taxed, and 401(k) and IRA withdrawals as partially taxed, with a top rate of 3.00% and age-65 exclusion starts at $12,000 per eligible person and is indexed annually.

The rate cuts are irrelevant to most retirees because their retirement income was already exempt. The trap is the early-distribution rule: a distribution before the plan's retirement age is taxable in Mississippi even when it is fully exempt for someone two years older.

Military retirement: Military retirement pay is exempt as qualified retirement income. Active-duty pay is taxed by the state of legal residence, with an exclusion for combat-zone hazardous duty pay and the first $15,000 of National Guard and Reserve compensation. See the military retirement tax map for every state's treatment.

Estate and inheritance tax: Mississippi has no estate or inheritance tax.

Selling a home or investments in Mississippi: retirement-income rules do not cover capital gains. See Mississippi capital gains tax before selling appreciated property or a brokerage position in the year you move or retire.

• Confirm the exclusion you are claiming. There is no separate retirement exclusion to compute because qualified retirement income never enters Mississippi taxable income. What the state does tax is wages, business income, interest, dividends, rental income, and early retirement withdrawals, with the first $10,000 of taxable income exempt and 4% on the rest for 2026 after a $6,000 single exemption and $2,300 standard deduction.
• Part-year residents. If you moved into or out of Mississippi during the year, retirement income is generally allocated to the period of residency, and the former state may still tax distributions received before the move. Document the move date, the new domicile, and where each distribution was received.
• Withholding and estimates. Pension and IRA custodians often withhold federal tax but not Mississippi tax. If Mississippi taxes any part of your retirement income, check whether quarterly estimated payments are needed to avoid an underpayment penalty.
• Federal side. The federal return has its own rules: up to 85% of Social Security can be taxable, the temporary $6,000 federal senior deduction is available for 2025 through 2028 subject to income limits, and Roth conversions are taxed in the conversion year. State exemptions do not change any of that.
• Large one-time distributions. Time any large withdrawal so it is a normal distribution under the plan, and keep the 1099-R distribution code with the return. For a retiree with meaningful interest, rental, or part-time wage income, the falling rate schedule favors deferring that income into 2027 and later years where it is flexible.

Comparing states before a move? Use the retirement taxes by state table and the moving states tax guide, and read retirement tax planning for how distributions, conversions, and a move are sequenced together.