Mortgage Interest Deduction in Mississippi
State income tax rate
4%
Itemized deductions allowed
✅ Yes
State-Level Mortgage Interest Deduction
Mississippi reduced its flat rate to 4% in 2026 as part of a plan to reach 4% by that year. Mississippi conforms to federal itemized deductions — mortgage interest is deductible on state returns.
Combined Federal + Mississippi Savings
If you paid $18,000 in mortgage interest last year and itemize on both returns, your combined tax savings would be approximately:
- Federal (22% bracket): $3,960
- Mississippi (4% rate): $720
- Total estimated savings: $4,680
These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.