Updated October 27, 2026 from live rates
Where to keep cash in Mississippi
Mississippi’s top income tax rate is 4.00% (a flat rate). At that rate and 37% federal, a 1-year Treasury bill at 4.50% keeps the most: about $7,088 a year on $250,000 after tax, versus $15 in a default brokerage sweep. A CD or savings account would need to pay 4.81% to keep as much as a 1-year Treasury bill at 4.50%.
Why Treasuries win in Mississippi
Savings accounts, CDs and most money funds pay interest that Mississippi taxes at up to 4.00%. Treasury bills don’t. So a Treasury bill paying 4.50% keeps what a fully taxable account paying 4.81% would, for a top-bracket Mississippi resident. Today the best 1-year CD we track pays 4.65% and the best savings account 3.55%.
Municipal money funds in Mississippi
We don’t list a money fund that holds only Mississippi municipal debt. A national municipal fund is free of federal tax but generally taxed by Mississippi; for a top-bracket resident it needs at least 2.95% to beat a 1-year Treasury bill.
Mississippi taxes on cash, in brief
- Top income tax rate: 4.00%, a flat rate on all income. Your own rate may be lower; change it above.
- Interest on U.S. Treasury bills, notes and bonds: exempt from state and local income tax, taxed federally.
- Savings accounts, CDs and prime or government money funds: taxed by Mississippi, except the share of a fund’s income that comes from U.S. Treasuries.
Questions
Is Treasury bill interest taxed in Mississippi?
No. Interest on U.S. Treasury bills, notes and bonds is exempt from state and local income tax under federal law, so Mississippi doesn’t tax it. It is still subject to federal income tax. Interest from savings accounts and CDs is taxed by Mississippi at up to 4.00%.
Where should I keep cash in Mississippi?
At Mississippi’s top rate and 37% federal, a 1-year Treasury bill keeps the most after tax today (4.50%). The answer depends on your brackets; the calculator on this page updates for yours.
What rate does a CD need to beat Treasury bills in Mississippi?
At Mississippi’s top rate and 37% federal, a CD or savings account needs at least 4.81% to keep as much as a 1-year Treasury bill paying 4.50%.
Rates: each provider’s own page and the U.S. Treasury, October 27, 2026. State rates: Tax Foundation, 2026 (top single-filer rate; local taxes not included). General information, not tax advice. Other states →