Updated September 4, 2026. Quick answer: No. Mississippi fully exempts public, private, federal, and military retirement income alike, with no dollar cap, once ordinary retirement-plan age or service requirements are met. Only early or excess distributions, taxable as such under the federal rules, are taxed.
More on public pension systems, topic by topic: Mississippi PERS COLA, Mississippi PERS returning to work and Mississippi PERS disability retirement.
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.
Drawing a pension? Whether the state withholds tax from it, from its own documents: Mississippi tax withholding on pension payments.
Selling your home? How the state taxes the profit, from its own tax documents: Does Mississippi tax the profit from selling your home?.
The state’s income tax schedule: the Mississippi tax brackets for 2026.
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.
Trusts have their own page: does Mississippi tax trust income.
Dividends and interest have their own page: does Mississippi tax dividends and interest.
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?.
Annuity payments have their own page: does Mississippi tax annuity income.
Making a gift or planning an estate? The state’s gift tax answer, from its own tax documents: Does Mississippi have a gift tax?.
Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does Mississippi have an estate tax?.
Military retired pay has its own page: does Mississippi tax military retirement.
Saving for a child’s college? The state’s 529 break has its own page: Mississippi 529 plan tax deduction.
Selling stocks, funds or real estate has its own page: does Mississippi tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does Mississippi tax 401(k) and IRA withdrawals.
The PERS payment options, partial lump sum and refund rules, from the system’s own handbooks: Mississippi PERS retirement decisions.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Mississippi taxes retirement income generally.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Fully exempt, no cap, for Mississippi state and local retirement systems. |
|---|---|
| Private (employer) pensions | Fully exempt, no cap; the statute treats private retirement plans the same as public ones. |
| Federal government pensions (FERS/CSRS) | Fully exempt, no cap. The same statutory clause names the Federal Civil Service Retirement Act explicitly, on identical footing with Mississippi’s own public retirement system. |
| Military retirement pay | Exempt, under the same general federal-government-retirement clause that covers other federal pensions; there is no standalone statutory line specific to military pay. |
| IRA and 401(k)/403(b) distributions | Fully exempt once ordinary retirement-plan age or service requirements are met. Early or excess distributions, taxable as such under the federal Form 5329 standard, remain taxable; Mississippi does not set its own numeric age threshold. |
| General retirement-income exclusion | A separate age-65/blindness exemption stacks on top of the retirement exemption: $1,500 for the taxpayer or spouse at 65 or older, and another $1,500 if blind. |
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How our partner relationships workSocial Security
Social Security is never taxed by Mississippi. Social Security has its own rules in every state; see the full breakdown in how Mississippi taxes retirement income generally.
Figures verified against the Mississippi Department of Revenue 2025 Individual Income Tax Instructions and the text of Miss. Code sec. 27-7-15 as quoted in 2022 House Bill 1212 on September 30, 2026; the current codified statute and the subsection letter of sec. 27-7-21 were not re-checked.
Statute and sources
Governing citation: Miss. Code Ann. sec. 27-7-15(4)(k) and (l) (retirement exemptions), sec. 27-7-21(f) (age-65 exemption).
- Mississippi Legislature, bill text quoting Miss. Code Ann. sec. 27-7-15(4)(k)
- Mississippi Dept. of Revenue, 2025 Individual Income Tax Instructions
Read September 4, 2026.
Related: how Mississippi taxes retirement income generally · does Mississippi tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.