Updated October 4, 2026. Quick answer: No, for most retirees. Mississippi’s 2025 instructions list retirement income from federal, state, and private retirement systems and say they “are exempt in total”. Early and excess distributions are the exception: “Pensions and annuities that are taxable as early or excess distributions” are taxable.
More state retirement-income schedules, line by line: Mississippi Form 80-105 line 46.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Mississippi tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Mississippi tax 403(b) and 457(b) withdrawals.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Mississippi tax withholding on IRA and 401(k) withdrawals.
Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Mississippi have an inheritance tax?.
Contributing to an HSA? How the state taxes it, from its own tax documents: Does Mississippi tax HSA contributions?.
What Mississippi does with 401(k) and IRA withdrawals
The instructions add that “Separation pay is not retirement income and does not qualify for exemption”. The documents print no age or dollar limit on the exemption, and they do not name 401(k) or IRA accounts in the exemption sentence; they say private retirement systems.
| Item | What the documents say |
|---|---|
| Treatment | Exempt in total when it is retirement income from a private retirement system; early or excess distributions taxable |
| State rate on taxable income | 0% on the first $10,000, then 4.4% (2025); 4% for 2026 |
| Source | Mississippi Department of Revenue, 2025 resident instructions and tax rates page |
A $40,000 withdrawal
A $40,000 withdrawal that is retirement income from a qualifying private plan adds $0 of Mississippi income tax. The same withdrawal taken early, as a distribution that is taxable as an early or excess distribution under the federal code, is taxable.
What changes in 2026
The rate page prints 4% on taxable income over $10,000 for tax year 2026, down from 4.4% for 2025.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on these withdrawals in Publication 590-B, Distributions from Individual Retirement Arrangements and Publication 575, Pension and Annuity Income.
Related: whether Mississippi taxes pensions, how Mississippi taxes retirement income, whether Mississippi taxes Roth conversions, and the state-by-state table of 401(k) and IRA withdrawal tax.
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Answer againSources
- 2025 Resident, Non-Resident and Part-Year Resident Income Tax Instructions (Form 80-100-25-1-1-000): view the document
- Individual Income Tax: Tax Rates: https://www.dor.ms.gov/individual/tax-rates
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.