Does Mississippi offer a 529 plan tax deduction?

Yes. Mississippi allows a state income tax deduction for contributions to its MACS (Mississippi Affordable College Savings) and MPACT prepaid plans. The deduction is capped at 10,000 dollars for single filers and 20,000 dollars for married couples filing jointly each year.

How much tax does the 529 deduction actually save me?

Your savings equal the deductible contribution times your marginal Mississippi income tax rate. Because Mississippi uses a low flat-style rate, the deduction reduces your taxable income rather than giving a dollar-for-dollar credit, so the savings are the contribution times that rate, up to the cap.

What is the contribution cap for the Mississippi deduction?

The annual deduction is limited to 10,000 dollars per single filer and 20,000 dollars per married couple filing jointly. Contributions above the cap still grow tax-free in the account but do not generate additional state deduction in that year.

Does the plan have to be a Mississippi 529 plan?

To claim the Mississippi deduction, contributions generally must go to a Mississippi-sponsored plan such as MACS or MPACT. Contributions to another state's 529 plan typically do not qualify for the Mississippi state deduction, even though they keep federal tax-free growth.

Is the 529 deduction a credit or a deduction?

It is a deduction, meaning it lowers the income on which Mississippi tax is calculated, not a credit that subtracts directly from tax owed. This tool reflects that by multiplying your capped contribution by your marginal Mississippi tax rate to estimate the savings.

Mississippi 529 Plan Tax Benefit Calculator

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Mississippi rewards saving for college through its MACS and MPACT 529 plans with a state income tax deduction of up to $10,000 (single) or $20,000 (joint) per year. Because it’s a deduction, your actual savings equal the deductible amount times your Mississippi income tax rate. This tool computes that benefit.

How it works

The deductible amount is your contribution capped at the filing-status limit, and the savings are that amount times your marginal rate:

cap         = single ? 10,000 : 20,000
deductible  = min(contribution, cap)
tax savings = deductible x marginal rate

A deduction reduces taxable income rather than tax owed directly, so the benefit scales with your rate. Mississippi’s income tax is a low, near-flat rate, which this tool lets you enter so the estimate matches the current year’s rate.

Example and notes

A single filer contributing $12,000 at a 4.4% rate can deduct only the min(12,000, 10,000) = 10,000 cap, saving 10,000 x 0.044 = 440 dollars in Mississippi income tax. The extra $2,000 still grows tax-free but earns no additional deduction this year. Confirm the current deduction cap and tax rate, since Mississippi has been phasing its income tax rate down — and the deduction requires a Mississippi-sponsored plan such as MACS or MPACT.