Mississippi
Mississippi PERS retirement benefits are not subject to Mississippi state income tax. Benefits paid to a resident of another state may be taxed by that state. Member Handbook (2024), pp. 13, 24, 50; Retiree Handbook (2026), p. 11; Mississippi PERS FAQs (2022), Q11; Hybrid Plan Handbook (2026), p. 11
Federal
Benefits are federally taxable except the part from member contributions made before July 1, 1982 (already taxed) and after-tax service purchases, recovered by IRS age-based factors. Mississippi PERS issues Form 1099-R each January. Without a withholding election Mississippi PERS withholds as 'married with three withholding exemptions'. Member Handbook (2024), p. 50; Retiree Handbook (2026), p. 11
Refunds and the PLSO
Refunds: 20% federal withholding on the taxable part if paid to you; possible 10% IRS penalty if under 55. Rollovers allowed (Form 5C). Member Handbook (2024), p. 14, Taxes on Refunds
PLSO: Generally 20% federal withholding if paid to you; may be rolled over; a 10% IRS penalty may apply before age 55. Member Handbook (2024), pp. 34-35
- Mississippi PERS benefits are not subject to Mississippi state income tax. Another state may tax them if you live there.Member Handbook (2024), pp. 13, 24, 50; Retiree Handbook (2026), p. 11
- Benefits are subject to federal income tax, except the part from contributions made before July 1, 1982. If you don't file a withholding form, Mississippi PERS withholds as 'married with three exemptions'.Member Handbook (2024), p. 50
- At retirement you can elect no federal withholding, withholding based on marital status and exemptions, and/or extra withholding. To change it later, send Form 17, Certificate of Withholding Preference, to Mississippi PERS.Member Handbook (2024), p. 50; Retiree Handbook (2026), p. 11
- Each January Mississippi PERS sends Form 1099-R to every retiree paid benefits the year before, showing benefits paid and federal tax withheld. Include it with your federal return if any tax was withheld; retirees in states that tax pensions may also need to file it with their state return.Retiree Handbook (2026), p. 11
- The non-taxable part of your benefit is figured from your age at retirement using IRS factors.Retiree Handbook (2026), p. 11
- A refund payback or service purchase you paid with after-tax dollars is posted as non-taxable contributions, so part of it comes back tax-free in your benefit. One paid through a rollover is a taxable contribution.Member Handbook (2024), p. 50; Retiree Handbook (2026), p. 11
Questions
Does Mississippi tax my Mississippi PERS pension?
No. Mississippi PERS retirement benefits are not subject to Mississippi state income tax. Another state may tax them if you live there. They are subject to federal income tax.
How do I change the federal tax withheld from my Mississippi PERS benefit?
Send Form 17, Certificate of Withholding Preference, to Mississippi PERS. You can choose no withholding, withholding by marital status and exemptions, and/or extra withholding. With no form on file, Mississippi PERS withholds as 'married with three withholding exemptions'.
When does Mississippi PERS send my 1099-R?
Each January, for benefits paid the year before. It shows what was paid and the federal tax withheld. If you live in a state that taxes pensions, you may need to file a copy with your state return too.
Is any of my Mississippi PERS benefit tax-free?
Yes, the part that returns contributions made before July 1, 1982 and service purchases or refund paybacks you paid with after-tax dollars. It is spread over your payments using IRS age-based factors. Paybacks made by rollover are taxable.
This site doesn't give tax advice. Ask a tax professional about your situation.
Source: Mississippi PERS Member Handbook, Revised November 8, 2024, pp. 13, 14, 24, 34-35, 50. Also: Retiree Handbook (2026); Mississippi PERS FAQs (2022); Hybrid Plan Handbook (2026). Last reviewed .