Updated October 4, 2026. Quick answer: No, on the instructions’ wording. Mississippi says retirement income “from federal, state, and private retirement systems are exempt in total”, with no dollar cap printed, though the documents read do not name military retired pay.
How Mississippi treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | Retirement income from federal, state and private retirement systems is exempt in total |
| Not exempt | Separation pay is not retirement income, and early or excess distributions and deferred compensation taken before retirement age or service requirements are taxable and go on Line 46 |
| Cap or age | None printed |
| Not stated | The documents read do not name military retired pay, so the exemption is read from the federal retirement systems wording |
| Rate on other income | 0% on the first $10,000.00 of taxable income and 4.4% above it for 2025 |
A $30,000 example
A retiree whose $30,000 of military retired pay is retirement income from a federal retirement system counts it as exempt in total. Separation pay is different and does not qualify.
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What changes in 2026
The Mississippi instructions print a lower rate on taxable income above $10,000 for later years: 3.75% for Tax Year 2027, 3.5% for 2028 and 3.25% for 2029. No change to the retirement income exemption is printed.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether Mississippi taxes pensions, how Mississippi taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- 2025 Form 80-100 Resident, Non-Resident and Part-Year Resident Individual Income Tax Instructions: https://www.dor.ms.gov/sites/default/files/tax-forms/individual/80100251%202.pdf
- Individual Income Tax Frequently Asked Questions: https://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions
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.