Mississippi 529 tax deduction in 2026
A large cap meets a low rate, and the first slice of income is not taxed at all.
Mississippi tax saved on this contribution
$240
4.0 % of what you put in comes back on your 2026 return.
| Subtracted from state income | $6,000 |
| Your state marginal rate | 4.00 % |
| Cap that applies this year | $20,000 |
| Back per $1,000 contributed | $40 |
Mississippi: Contributions to a MACS account are deductible up to $10,000 for single and other filers or $20,000 for joint filers per year (one spouse may contribute the full $20,000); MPACT prepaid contract payments are also excluded; contributions count if made by the return due date. Read on 2026-10-19. No federal deduction exists for 529 contributions.
| Taxable income | Marginal rate | Tax saved |
|---|---|---|
| $50,000 | 4.00 % | $240 |
| $100,000 | 4.00 % | $240 |
| $200,000 | 4.00 % | $240 |
| $400,000 | 4.00 % | $240 |
Worked out by Radif Partners · How we calculate · Mississippi rule read on October 19, 2026, brackets of tax year 2026 · not tax advice
Mississippi lets a filer deduct contributions to a Mississippi Affordable College Savings (MACS) account up to $10,000 a year, or $20,000 on a joint return, and one spouse may put in the full joint amount alone. Payments on a Mississippi Prepaid Affordable College Tuition (MPACT) contract are excluded from income as well. What each deducted dollar is worth is set by an unusual rate schedule: nothing on the first $10,000 of taxable income, then 4 % in 2026, with a lower rate already scheduled for 2027. A couple at $85,000 who deposits $20,000 saves $800; a single mother at $45,000 who reaches $10,000 saves $400. Contributions made by the return due date can count. Only Mississippi's plans qualify. Withdrawals that leave for a non-qualified use are taxed on their earnings and the deducted part comes back into income, while a rollover out that is free of federal tax is free of Mississippi tax too.
| Benefit for contributions | Deduction |
|---|---|
| Cap | $10,000 single, $20,000 joint per return |
| Another state’s plan counts | No, in-state plan only |
| State plans (official names, no recommendation) | Mississippi Affordable College Savings (MACS) Program, Mississippi Prepaid Affordable College Tuition (MPACT) Program |
| Account balance limit | $235,000 |
| K-12 withdrawals qualified for state tax | Yes |
| 529 to Roth IRA rollover qualified | Not stated by the state |
| Student loan payments qualified | Yes |
| Add-back on a rollover to another state’s plan | No |
The zero band changes who gains
Mississippi taxes the first $10,000 of taxable income at nothing, and the rest at 4 % for 2026. The Department of Revenue says spouses on a combined return may compute their tax separately, so each spouse has a zero slice; the joint figures on this page assume both have at least $10,000 of taxable income, which puts the joint band at $20,000. A one-earner couple pays 4 % above $10,000 instead.
For a family with little taxable income, the deduction can be worth nothing. A part-time worker at $9,000 who puts $2,000 into MACS saves $0, because no tax was due on that income in the first place. At $14,000, an $8,000 deposit saves $160: only the part of the deduction that reaches above the zero band pays off. Above that, every dollar is worth 4 %.
Mississippi saving near the zero band
Mississippi tax saved on this contribution
$160
| Subtracted from state income | $8,000 |
| Your state marginal rate | 4.00 % |
| Cap that applies this year | $10,000 |
| Back per $1,000 contributed | $20 |
A deadline that runs into the next year
The Form 80-100 instructions let contributions made by the due date of the return count. A family that missed the last weeks of December still has until the filing deadline to make a deposit that lowers its prior-year Mississippi tax. A couple at $62,000 who adds $3,600 in that window cuts its bill by $144.
MACS and MPACT
MACS is the savings plan; MPACT is the prepaid tuition program. The instructions exclude MPACT payments from income too, but the cap wording refers to the MACS Program, and whether MPACT payments fall under the same $10,000 and $20,000 limits is not stated there. Contributions to another state's 529 earn no Mississippi deduction.
The $235,000 account limit comes from the MACS disclosure booklet of July 2020. No newer booklet was found, and the limit may have been raised since.
What the 2020 booklet treats as qualified
The same booklet defines qualified higher education expenses to include K-12 tuition and student loan repayments, and says no part of a qualified withdrawal is subject to Mississippi tax. That text predates the 2025 federal law, which raised the K-12 limit to $20,000 from 2026, widened K-12 expenses and added credential programs; no official Mississippi statement on those changes, or on 529 to Roth IRA rollovers, was found. A 2025 state brochure mentions the Roth option without giving its state tax treatment.
When money leaves
On a non-qualified withdrawal, Mississippi taxes the earnings and adds back the contribution part to the extent it was deducted. A rollover to another state's 529 that federal law does not tax is not taxed by Mississippi either. The sample below takes $15,000 out for a non-school use from an account that is one third earnings.
A non-qualified MACS withdrawal
Tax on this withdrawal
$1,687
| Earnings part | $4,950 |
| Federal income tax at 12 % | $594 |
| 10 % additional tax | $495 |
| Mississippi tax and add-back | $598 |