Mississippi Gov. Tate Reeves signed House Bill 1 — the “Build Up Mississippi Act” — into law on Thursday, officially eliminating the state’s individual income tax in what he called a “generational victory” for Mississippians.

“Let me say that again: Mississippi will no longer tax the work, the earnings, or the ambition of its people,” Reeves said during a signing ceremony at the Governor’s Mansion in Jackson. “This is more than a policy victory. This is a transformation.”

The legislation, passed with broad Republican support, positions Mississippi among a small group of states that do not impose a state income tax. The law sets the state’s income tax rate to drop incrementally to 3% by 2030, with additional cuts scheduled until the rate reaches zero. It also reduces the state’s grocery tax from 7% to 5%.

Reeves, who has long made income tax elimination a central campaign promise, said the move would boost economic competitiveness and return more money to workers. “Government should take less so that you can keep more,” he said. “Our people should be rewarded for hard work, not punished.”

The bill builds on House Bill 531, the most significant tax cut in state history, signed by Reeves in 2022. That measure returned an estimated $500 million to taxpayers and set the stage for Thursday’s more sweeping tax reform.

During his remarks, Reeves thanked House Speaker Jason White, Lt. Gov. Delbert Hosemann, House Ways and Means Chairman Trey Lamar, and members of the Legislature for helping push the bill across the finish line. “We debated. We negotiated. We stayed focused on the goal and got it done together,” Reeves said.

Supporters say the income tax cut will make Mississippi more attractive to businesses and families. “We are saying to job creators across America: if you want to build, come to Mississippi,” Reeves said. “To families across the South: if you want to grow, come to Mississippi.”

Reeves, who previously served as lieutenant governor and state treasurer, described the legislation as the culmination of years of policy efforts and political advocacy. “From my first campaign to every legislative session since, I have made this my mission,” he said.

In a statement on his social media accounts, Reeves called the law “a proud legacy” and a “turning point” in state history. “This is when we bet on ourselves,” he said. “This is when we broke from the pack. This is when we took bold action — and it paid off.”

Critics of eliminating the income tax have raised concerns about the long-term impact on state revenues, including public education, healthcare, and infrastructure funding. Reeves did not address those concerns directly on Thursday but said the change would lead to “more jobs, more investment, and more opportunity.”

Mississippi relies heavily on sales taxes and federal aid to fund its budget. With the income tax now set to phase out entirely, lawmakers may face fiscal challenges in future years. Still, Reeves remained confident.

“To the people of Mississippi: you are the real winners today,” Reeves said. “The work of your hands belongs to you — to feed your family, to invest in your home, and to build your community.”

The income tax phaseout begins in 2026, with complete elimination projected for the early 2030s.