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State Benefit·Mississippi·🏛️Tax Benefits

Reserve Component Pay Tax Exemption

First $15,000 of reserve component pay exempt from Mississippi state income tax.

Verified May 12, 2026againstdor.ms.gov

At a glance

Benefit type
Tax Benefits — Mississippi
Who it's for
National Guard, Reservists
VA rating needed
No rating requirement
Estimated value
Up to ~$660/year in tax savings
Where it applies
Mississippi
Last verified
May 12, 2026

What is Reserve Component Pay Tax Exemption?

Reserve Component Pay Tax Exemption is a Mississippi tax benefits benefit for national guard, reservists. First $15,000 of reserve component pay exempt from Mississippi state income tax. The listed value is Up to ~$660/year in tax savings.

Who qualifies

National GuardReservists
  • Through veteran sponsor (any rating)
  • Mississippi residency

How to apply

Apply through the official Mississippi agency.

Open application

Who is eligible

Eligibility

Reserve component or National Guard service members. Qualifying pay includes inactive duty training (monthly drills), active duty training (summer camp, special schools), and state active duty (emergency duty).

Full-time National Guard (AGR) pay does not qualify for the exclusion.

At Mississippi's 2026 flat 4.4% rate, the exclusion is worth up to ~$660/year in tax savings (rate scheduled to decline to 4% by 2030).

Verified information & sources

Last verified: May 12, 2026

Official source: dor.ms.gov

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

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Frequently asked questions about Reserve Component Pay Tax Exemption

Who qualifies for Reserve Component Pay Tax Exemption?▾
Reserve Component Pay Tax Exemption is for National Guard, Reservists; Through veteran sponsor (any rating); mississippi residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Reserve Component Pay Tax Exemption worth?▾
The listed value is Up to ~$660/year in tax savings. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Reserve Component Pay Tax Exemption?▾
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Reserve Component Pay Tax Exemption?▾
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

Other Mississippi Tax Benefits

Military Retirement Pay Tax Exemption

Military retired pay is fully exempt from Mississippi state income tax.

Full retirement pay exemption

VA Disability Pay Tax Exemption

VA disability pensions and military disability retirement pay are exempt from Mississippi income tax.

Full exemption of VA disability and military disability retirement pay

Homestead Property Tax Exemption (100% Disabled)

Full exemption from all property taxes on homestead for 100% service-connected disabled veterans.

100% property tax exemption

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