MS SB2326

Phases out Mississippi state income tax over a five-year period beginning January 1, 2015, with rates progressively reduced each year through 2019.

For 2015: maintains existing tax brackets at 3% on first $5,000 of income, 4% on next $5,000, and 5% on income over $10,000.

Reduces tax rates by approximately 20% annually for 2016-2018, with 2016 rates at 2.4%, 3.2%, and 4% across the three brackets respectively.

Eliminates all state income tax entirely beginning January 1, 2019, with no tax imposed on residents or non-residents.

Applies the phased elimination proportionally to taxpayers with fiscal years spanning two calendar years by allocating the applicable rates based on months in each calendar year.