Active-duty pay
Taxed
Active-duty pay taxable; combat zone exempt.
State Guide · MS
Mississippi — Military Tax Treatment
Mississippi taxes active duty and Guard pay but fully exempts military retirement. The long-term picture (retirement exemption) is better than the short-term (taxing all active service pay).
Tax treatment at a glance
Guard & Reserve drill pay
Taxed
Guard and Reserve drill pay is taxable Mississippi income. SCRA protections apply during federal activation but not routine drill.
Military retirement pay
Fully Exempt
Military retirement pay fully exempt.
The numbers · verified for tax year 2025
Top marginal rate
4.4%
Retirement-pay exemption
Full
Mississippi fully exempts all qualified retirement income, including military retirement pay — no dollar cap, no age threshold.
Standard deduction
For 2025, a flat 4.4% applies to taxable income over $10,000 (the first $10,000 is taxed at 0%); the rate steps down toward eventual elimination. Standard deduction: $2,300 single / $4,600 MFJ, plus a personal exemption ($6,000 single / $12,000 MFJ).
VA disability compensation
Always tax-free
Federally tax-free under 38 USC § 5301. No state taxes VA disability compensation as income — Mississippi included.
Survivor Benefit Plan (SBP)
Follows retirement
Mississippi exempts military retirement — SBP annuities are generally exempt.
Federal rules that override state law
SCRA — Servicemembers Civil Relief Act
Active-duty servicemembers pay state income tax only to their state of legal domicile — not the state where they are stationed. If you are from Texas and stationed in Mississippi, Mississippi cannot tax your military pay. This applies during all active duty periods and during Guard/Reserve mobilizations on federal (Title 10) orders.
MSRRA — Military Spouses Residency Relief Act
Military spouses can maintain their home-state domicile even when living in a different state due to their servicemember's orders. A spouse who is a Texas resident following their servicemember to Mississippi can keep Texas as their tax domicile and avoid Mississippi state income tax on their wages.
Guard & Reserve — the SCRA gap
SCRA pay protections apply during federal (Title 10) activation orders. During routine drill weekends and state-only activations, Guard and Reserve members are state residents serving in their home state — SCRA does not protect their drill pay from state income tax. Whether Mississippi exempts that pay is the state-specific question answered above.
Filing watch-outs
- 01Retirement exemption: MS Form 80-105, line 8 military pay exclusion
- 02Guard drill pay is taxable MS income
Veteran-specific tax benefits
Property tax exemption for 100% disabled vets.
Official authority
https://www.dor.ms.gov/ ↗State tax law changes annually. Verify current rules with the Mississippi Department of Revenue before making any tax decision.
Mississippi military tax — common questions
Does Mississippi tax military retirement pay in 2026?
Mississippi fully exempts military retirement pay. Military retirement pay fully exempt.
Does Mississippi tax active-duty military pay?
Mississippi taxes active-duty military pay for state residents. Active-duty pay taxable; combat zone exempt. Under the SCRA, Mississippi can only tax the military pay of service members who are legally domiciled in Mississippi — not those merely stationed there.
Does Mississippi tax National Guard and Reserve drill pay?
Mississippi taxes Guard and Reserve drill pay. Guard and Reserve drill pay is taxable Mississippi income. SCRA protections apply during federal activation but not routine drill.
Is VA disability compensation taxed in Mississippi?
No. VA disability compensation is federally tax-free under 38 U.S.C. § 5301, and no state — including Mississippi — taxes it as income.
If I'm stationed in Mississippi but claim another state, can Mississippi tax my military pay?
No. Under the Servicemembers Civil Relief Act (SCRA), active-duty pay is taxable only by your state of legal domicile, not the state where you are stationed. If your domicile is elsewhere, Mississippi cannot tax your active-duty military pay. Military spouses get the same protection under the MSRRA.
Related tools
Other state guides