As the 2026 legislative session moves forward, Mississippi lawmakers are advancing several significant changes to state law. These updates span across taxes, education, and healthcare, with many taking effect throughout this year. Understanding these shifts can help you plan your finances and navigate new state services. Below are seven notable law changes and legislative updates coming to Mississippi in 2026.
Individual Income Tax Reductions
One of the most immediate changes for Mississippians is a scheduled reduction in the individual income tax. Effective January 1, 2026, the top marginal tax rate dropped from 4.40% to 4.00%. This is part of a multi-year phase-down aimed at eventually eliminating the state income tax entirely. For the average taxpayer, this means a slight increase in take-home pay on every paycheck throughout the year.
The Mississippi Education Freedom Act
The House recently passed the “Mississippi Education Freedom Act,” a major overhaul of how the state funds K-12 schooling. A centerpiece of this legislation is the creation of Magnolia Student Accounts. These accounts allow eligible families to direct state-supported funds toward private school tuition, tutoring, and other educational expenses. While the program focuses on low-to-moderate-income families first, it signals a significant shift toward expanded school choice in the state.
Sales Tax Exemptions for Farmers
Agriculture remains a cornerstone of the Mississippi economy, and new legislation is providing direct relief to farmers. Senate Bill 2272 aims to exempt various agricultural items from the state sales tax. This includes farm machinery, parts, labor for repairs, and fencing materials—items previously taxed at a 1.5% rate. This change helps local farmers remain competitive by lowering the high input costs of running a modern farm.
Teacher and Staff Pay Raises
To combat the ongoing teacher shortage, lawmakers are pushing for substantial salary increases for educators. House Bill 1126 proposes a $5,000 pay raise for all certified and licensed teachers in Mississippi. Additionally, the bill provides an extra $3,000 for those teaching in special education classrooms. Assistant teachers are also seeing a boost, with their minimum annual salary rising from $17,000 to $20,000 to help retain support staff.
Expanded Public School Transfers
Parents now have more flexibility in choosing where their children attend school. New rules remove the requirement that a “releasing” district must give permission for a student to transfer. Under the updated law, only the “receiving” district needs to approve the move. While receiving districts can still deny transfers based on capacity, they must now clearly publish their available seats and selection criteria online.
Medicaid Expansion Efforts
The “Mississippi Health Care Security and Promotion Act of 2026” marks a renewed effort to expand health insurance coverage. The goal is to provide coverage to low-income individuals whose income is at or below 100% of the federal poverty level. The bill tasks the Division of Medicaid with applying for federal waivers to make the program fiscally sustainable. If approved, this move could provide thousands of uninsured Mississippians with access to essential health benefits.
Consumer Data Privacy Protections
In response to growing digital security concerns, the “Mississippi Consumer Data Privacy Act” is moving through the legislature. This law gives residents more control over their personal information. If fully implemented, you will have the right to request that businesses disclose what data they have collected about you and request its deletion. It also creates new liabilities for entities that fail to maintain adequate cybersecurity standards.
If you want to stay informed on how these bills progress through the Senate and House, you can track their status in real-time on the official Mississippi Legislature website.
Which of these new laws will have the biggest impact on your life this month? Tell us in the comments.
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