Reserve Component Pay Tax Exemption
First $15,000 of reserve component pay exempt from Mississippi state income tax.
State BenefitMississippiTax Benefits
Verified May 12, 2026 against dor.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 ~$600/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 ~$600/year in tax savings.
Who qualifies
- National Guard
- Reservists
- Through veteran sponsor (any rating)
- Mississippi residency
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% rate (on taxable income over $10,000), the exclusion is worth up to ~$600/year in tax savings (rate scheduled to decline to 3% by 2030 under HB 1 of 2025).
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.
How VetUnlock verifies benefitsFrequently 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 ~$600/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 ExemptionFull retirement pay exemptionMilitary retired pay is fully exempt from Mississippi state income tax.
- VA Disability Pay Tax ExemptionFull exemption of VA disability and military disability retirement payVA disability pensions and military disability retirement pay are exempt from Mississippi income tax.
- Homestead Property Tax Exemption (100% Disabled)100% property tax exemptionFull exemption from all property taxes on homestead for 100% service-connected disabled veterans.