Updated July 27, 2026. Quick answer (2026): Moving from Minnesota to Mississippi in retirement, you stop paying Minnesota income tax on withdrawals and leave a Minnesota death tax behind. Four separate taxes change when you move — state income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Most comparisons only price the first one.
Minnesota vs Mississippi: every tax that changes
| What changes | Minnesota (leaving) | Mississippi (arriving) |
|---|---|---|
| State income tax | graduated to 9.85% (4 brackets, 5.35%-9.85%) | flat 4% for 2026 (final cut under prior schedule; HB 1 of 2025 continues: 3.75% in 2027, then -0.25%/yr to 3% by 2030, with growth triggers toward elimination). First $10,000 of taxable income exempt. |
| Social Security | Partially taxed: full subtraction of federally taxable SS if AGI ≤ ~$84,490 single / ~$108,320 MFJ (TY2025, indexed); subtraction phases out 10% per $4,000 of AGI above threshold (per $2,000 MFS), fully phased out above ~$120,490 / ~$144,320. Above that, taxed like federal. | not taxed (fully exempt) |
| Pension / 401(k) / IRA | Pensions, 401(k), and IRA distributions generally fully taxable. | Fully exempt: all qualified retirement income — pensions (public/private), 401(k)/403(b), IRA distributions taken per plan terms (normal retirement), annuities. |
| Estate tax | yes – $3,000,000 exclusion (unchanged since 2020, not indexed); rates 13%-16%; additional qualified small business / farm property deduction up to $2,000,000 (combined max $5,000,000). Official 2025 Form M706 instructions confirm: ‘For 2025 decedents, the exclusion amount and tax filing threshold is $3,000,000… maximum qualified small business property and farm property deduction amount is $2,000,000’ | none |
| Inheritance tax | none | none |
| Probate fee model | reasonable-fee | reasonable-fee |
| Probate filing fee | ~$310-$365 to open probate (first-paper district court filing fee plus county law library fee; identical for informal and formal) — Minn. Stat. §357.021 and mncourts.gov fee schedule; certified letters $14 each | varies by county |
| Small-estate limit | $75,000 (net of liens/encumbrances) — collection of personal property by affidavit, Minn. Stat. §524.3-1201; 30-day wait; notarized affidavit plus certified death record. | $75,000 (net of liens/encumbrances) — successor’s affidavit for personal property, Miss. Code §91-7-322 (raised from $50,000 in 2020); 30-day wait. Bank-account affidavit and muniment-of-title procedures also exist for narrow cases. |
Every cell is quoted from our statute-cited 51-jurisdiction dataset. Download the full dataset as CSV.
1. What changes on your annual tax bill
Minnesota taxes retirement withdrawals: Pensions, 401(k), and IRA distributions generally fully taxable. Mississippi does not. On a $100,000 annual withdrawal, the Minnesota bill is whatever its graduated to 9.85% (4 brackets, 5.35%-9.85%) schedule produces; in Mississippi it is $0. Social Security is treated as follows — Minnesota: Partially taxed: full subtraction of federally taxable SS if AGI ≤ ~$84,490 single / ~$108,320 MFJ (TY2025, indexed); Mississippi: not taxed (fully exempt)
2. What changes at death: state estate tax
This is usually the larger number. Minnesota levies an estate tax — yes – $3,000,000 exclusion (unchanged since 2020, not indexed); rates 13%-16%; additional qualified small business / farm property deduction up to $2,000,000 (combined max $5,000,000). Official 2025 Form M706 instructions confirm: ‘For 2025 decedents, the exclusion amount and tax filing threshold is $3,000,000… maximum qualified small business property and farm property deduction amount is $2,000,000’ — and Mississippi levies none (none). Establishing domicile in Mississippi removes that exposure for assets that are not Minnesota real property.
3. What changes at death: state inheritance tax
Neither state levies an inheritance tax. Minnesota: none Mississippi: none
4. The one nobody prices: what probate costs your heirs
Minnesota uses a reasonable-fee fee model (UPC state: reasonable compensation (Minn. Stat. §524.3-719); no percentage schedule.); Mississippi uses a reasonable-fee model (Court’s discretion: ‘such sum as the court deems proper’ considering estate value/worth and difficulty of duties, plus necessary expenses including a reasonable attorney’s fee (Miss. Code §91-7-299). The old 1%-7% statutory guideline was removed by amendment; no percentage schedule today.). Filing fees — Minnesota: ~$310-$365 to open probate (first-paper district court filing fee plus county law library fee; identical for informal and formal) — Minn. Stat. §357.021 and mncourts.gov fee schedule; certified letters $14 each Mississippi: varies by county
Full detail: probate cost by state and small-estate limits by state.
Will Minnesota still tax me after I move to Mississippi?
Not on your retirement withdrawals, once you genuinely change domicile — but that is a harder test than a change of address, and what you leave behind stays in reach.
- Domicile is a test, not a mailing address. A departing state can and does audit residency. Days present, voter registration, driver’s licence, where your doctors and advisers are, and where you keep what you value all count.
- Real property left behind stays taxable. Keeping a home in Minnesota can keep part of the estate within reach of Minnesota rules even after you become a Mississippi resident.
- A Roth conversion is taxed where you live in the year you convert. Sequencing a conversion after establishing the new domicile is often worth more than the annual saving — see how all 51 jurisdictions tax Roth conversions.
If you keep a home in Minnesota, what happens at death?
Changing domicile moves you. It does not move the house. Minnesota levies an estate tax, and it reaches a nonresident decedent’s real property situated there — so a home kept behind after the move stays within Minnesota’s reach even once Mississippi is your legal home for every other purpose. Minnesota gross estate is the federal gross estate excluding property with situs outside Minnesota.
File if Minnesota-situs property is in the federal gross estate AND the federal gross estate plus adjusted taxable gifts within three years exceeds $3,000,000. The practical consequence is the part most summaries skip: Minnesota disregards pass-through entities for situs, so holding the property through an LLC does not move it out of state. Authority: Minn. Stat. ch. 291; Form M706 instructions.
This is the exposure that survives a move, and it is the one worth pricing before the move rather than after. The house also stays within that state’s probate jurisdiction, so the estate faces a separate ancillary proceeding there on top of the probate where you live — the ancillary probate calculator prices that second proceeding. Confirm the current figures with the state revenue department or a licensed professional before acting — thresholds move, and the arithmetic depends on the whole estate, not just the house.
Full state detail
Every figure above is summarized. The complete statute-cited breakdown for each state: Minnesota retirement taxes and Mississippi retirement taxes. To compare any other pair, start at the retirement tax relocation hub.
Talking this through
Relocation timing, Roth conversion sequencing and estate exposure interact, and the order you do them in changes the total. If you want a second opinion, understand what it should cost first — see our advisor cost guide. If a move is genuinely on the table, here is what to look for in an advisor who knows both Minnesota and Mississippi.
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Cite or share this comparison
Suggested citation: Clear Money Guide, “Minnesota to Mississippi Retirement Taxes (2026),” statute-cited; clearmoneyguide.com/minnesota-to-mississippi-retirement-taxes/. Free to cite with attribution. Download the full dataset as CSV, or contact contact@clearmoneyguide.com for custom cuts.
Primary sources
- Minn. Stat. § 290.0132 (SS, military, public pension subtractions)
- MN DOR: Social Security Benefit Subtraction
- Qualified Public Pension Subtraction
- Minn. Stat. sec. 291.016
- Minn. Stat. sec. 291.03
- Miss. Code § 27-7-15(4)(k) (retirement income exclusion)
- HB 1 (2025), ‘Build Up Mississippi Act’
- Minn. Stat. §524.3-719
- Minn. Stat. §524.3-1201
- Minn. Stat. §357.021
- Miss. Code §91-7-299
- Miss. Code §91-7-322
Methodology: every figure is quoted from Clear Money Guide’s statute-cited 51-jurisdiction datasets, compiled from state statutes, session laws and revenue-department publications and adversarially verified in July 2026. Nothing here is personalized tax or legal advice. Confirm your own facts with a qualified adviser before you move.