Updated October 5, 2026. Quick answer: No, for plan annuities. Mississippi’s FAQ says “retirement income, pensions and annuities are not subject to Mississippi Income tax”, with the exception that early distributions do not count as retirement income.
More state retirement-income schedules, line by line: Mississippi Form 80-105 line 46.
How Mississippi treats annuity income
| Item | What the documents say |
|---|---|
| Treatment | Retirement income, pensions and annuities from retirement systems exempt in total |
| No cap | The documents print no dollar cap, age threshold or income test |
| Early distributions | “Early distributions are not considered retirement income” |
| Excess and early | The instructions say “annuities that are taxable as early or excess distributions” do not qualify |
| The general rate | “0% on the first $10,000.00 of taxable income and 4.4%” above it |
| Purchased annuities | The documents read do not address annuities bought outside a retirement plan |
A $24,000 example
A retiree who has met the plan’s retirement requirements and receives $24,000 a year of annuity payments from a retirement system owes $0 of Mississippi tax on it.
If the same $24,000 were taxable as an early distribution, the general rate would apply above the first $10,000: ($24,000 minus $10,000) x 4.4% = $616, before deductions.
What changes in 2026
The 2025 instructions print House Bill 1, which lowers the rate on income above $10,000 to 3.75% for tax year 2027, 3.5% for 2028 and 3.25% for 2029. The documents print no change to the retirement exemption.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Topic no. 410, Pensions and Annuities and Publication 575, Pension and Annuity Income.
Related: whether Mississippi taxes pensions, how Mississippi taxes retirement income, state tax on 401(k) and IRA withdrawals, how a surrendered annuity is taxed, and pension and annuity decisions.
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Answer againSources
- Individual Income Tax Frequently Asked Questions (Mississippi Department of Revenue): https://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions
- 2025 Resident, Non-Resident and Part-Year Resident Income Tax Instructions, Form 80-100-25 (Mississippi Department of Revenue): https://www.dor.ms.gov/sites/default/files/tax-forms/individual/80100251 2.pdf
Sources: the primary documents linked above, read on October 5, 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.