Updated October 5, 2026. Quick answer: Yes. Mississippi taxes trust income, and the Form 81-100 instructions for Form 81-110 say that “A resident trust is any trust which is administered by the trustee” in Mississippi, with all other trusts treated as nonresident trusts.
How Mississippi treats trust income
| Item | What the documents say |
|---|---|
| Treatment | Mississippi applies the individual income tax to estates and trusts through Form 81-110, the Fiduciary Income Tax Return. In the source’s words, “income tax imposed upon individuals shall be applicable to the income” of estates or of any kind of property held in trust. |
| Who counts as a resident trust | The instructions use an administration test, so a trust administered outside Mississippi is not resident merely because the trust document calls for Mississippi law, and the documents read state no settlor or beneficiary domicile test. In the source’s words, “shall not be considered a resident trust merely because the governing instrument” or a law requires that the laws of Mississippi be followed. |
| Rate on trust income | The 2025 schedule of tax computation taxes the first $10,000 at 0% and applies 4.4% to the remainder. In the source’s words, “Remaining balance x 4.4%” is the printed second line of that schedule. |
| Distribution deduction | Line 24 of Form 81-110 deducts income distributed to beneficiaries, including any income of “the estate or trust for its taxable year which is distributable currently” to a beneficiary, whether or not such income is actually distributed. |
| Exemption and standard deduction | Estates receive a $600 exemption, trusts required to distribute all income currently receive $300, and trusts permitted to accumulate income receive $100, while a $2,300 standard deduction is allowed to fiduciaries in lieu of itemized fiduciary expenses. |
| Nonresident trusts | A fiduciary files for a nonresident trust only when the trust “has taxable income or gain derived from Mississippi sources” and for a nonresident trust, annuities, interest, dividends and gains from intangible personal property are not Mississippi source income unless part of a business carried on in Mississippi. |
| Return to file | Form 81-110 is the return for resident and nonresident trusts, with a complete copy of the federal Form 1041 attached. The instructions state the due date this way. The source says: “Calendar year returns must be filed no later than April 15th annually.” |
| Rate schedule for 2026 and 2027 | The Department of Revenue rate page lists the schedule as follows. In the source’s words, “Tax Year 2026 Excess of $10,000 of Taxable Income is taxed” at 4%, with tax year 2027 listed at 3.75%. |
A $10,000 example
On the 2025 schedule the first $10,000 of taxable income is taxed at 0% and the remaining balance at 4.4%, so a trust with $10,000 of taxable income owes ($10,000 minus $10,000) x 4.4% = $0 of Mississippi income tax on it. A trust with more than $10,000 pays 4.4% on the excess. Federal tax on the trust’s income still applies.
Income the trust passes out to a beneficiary is handled as the distribution deduction row above describes.
What changes in 2026
The Department of Revenue general information page lists a 4% rate on taxable income over $10,000 for tax year 2026 and 3.75% for tax year 2027.
Federal rules
The state’s treatment sits on top of the federal one. The federal brackets a trust faces are laid out in trust tax brackets versus individual brackets, and capital gains that a trust keeps are covered in capital gains stay in the trust. The IRS explains the federal return in the About Form 1041 page.
Related: how Mississippi taxes retirement income, whether Mississippi taxes pensions, what a living trust costs in Mississippi, federal trust tax brackets, and trust income tax by state.
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Answer againSources
- Mississippi Fiduciary Income Tax Return Instructions, Form 81-100, 2025 (Mississippi Department of Revenue): https://www.dor.ms.gov/sites/default/files/tax-forms/individual/81100251 1.pdf
- Mississippi Fiduciary Income Tax Return, Form 81-110, 2025 (Mississippi Department of Revenue): https://www.dor.ms.gov/sites/default/files/tax-forms/individual/81110258 1.pdf
- General Information, Individual Income Tax (Mississippi Department of Revenue): https://www.dor.ms.gov/general-information
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.