MS SB2869

Halts the scheduled state income tax rate reductions on income over $10,000, freezing the rate at 4% for calendar year 2026 and all years thereafter

Eliminates planned rate decreases that would have lowered the tax from 4% to 3.75% (2027), 3.5% (2028), 3.25% (2029), and 3% (2030)

Repeals Section 27-7-5.1, which provided for additional tax reductions on income exceeding $10,000 beginning in 2031 under certain conditions

Maintains the existing tax structure of no tax on the first $10,000 of individual taxable income (phased in between 2018-2023)

Takes effect July 1, 2026