Lawmakers, Governor expect higher revenues, adopt $7.8 billion estimated revenue for Fiscal Year 2028

Lawmakers, Governor expect higher.

Key points

• Since 2020, the state has seen wage expansion at rates of at least 4.5% annually, whereas prior to 2020 that rate was between 2.5% and 3%.
• Lawmakers, Governor expect higher revenues, adopt $7.8 billion estimated revenue for Fiscal Year 2028.
• Enrollment at Mississippi's public universities declined slightly between 2025 and 2026 school years.
• So far in the first three months of Fiscal Year 2027, those revenues have rose by 26%.
• The Democrat is now ahead of the Republican incumbent by 1, 138 votes in Mississippi's U.S.

Lawmakers, Governor expect higher revenues, adopt $7.8 billion estimated revenue for Fiscal Year 2028. By: Jeremy Pittari – November 4, 2026. (Photo from Governor's 2024 EBR).

In practice, the figure reflects a expansion in revenue by concerning $266 million compared to the current fiscal year's estimate.

Meanwhile, a solid workforce, growing economy and inflation are contributing to a rise in tax revenue in Mississippi, leading the Joint Legislative Budget Committee, including Governor Tate Reeves (R), to adopt a almost $7.8 billion estimated revenue for the coming fiscal year.

That amount is $266.4 million more than the Legislature's current fiscal year sine die estimate, state economist and chair of the Revenue Estimating Group Corey Miller informed the committee.

"I think that this revenue estimate is something that we should all be proud of because even as we have been literally cutting individual income taxes for our people for almost ten years now, overall tax revenues continue to grow, " Governor Reeves remarked after hearing the proposed revenue estimate.

Notably, an growth in predicted revenue comes as the state is working to lower the personal income tax rate on an annual basis and put a 2% reduction in the sales tax on grocerier in place.

"However, through the first three months of this Fiscal Year 2027, sales tax revenues were 3.7 percent greater compared to the same period last fiscal year, " Miller informed the committee.

In practice, the offset to the sales tax cuts appear to be due to a number of factors. Miller remarked moderately high inflation and continued modest wage expansion in the state will probable lead to an rise in sales tax revenue in the current fiscal year, continuing into Fiscal Year 2028.

Mississippi has additionally been phasing out the individual income tax. Reductions in that rate are being implemented gradually, with 2026's rate coming in at 4% and the 2027's rate projected to decline to 3.25%.

Those reductions have led to a decline in income tax revenue by 3.7% for the first three months of this fiscal year when compared to the same period in the prior year.

"While individual income tax revenue should decrease as the income tax rate continues to decrease these revenues have fallen at a slower rate than projected by the Revenue Estimating Group, " Miller explained.

Wage expansion and inflation additionally play a part in this category, Miller noted, adding that there are more working Mississippians now being went on to the economy, slowing the decline of income tax revenue.

Corporations are benefitting from the current economic climate as well. Miller remarked corporate income tax revenue grew by 7.8% during Fiscal Year 2026, the first rise the state has seen since 2023.

Nationally, the year-over-year change in after tax corporate profits rose by 17.5%, and thus far in the second quarter of the 2026 calendar year, the year-over-year rise was 26.6%.

"This surge in corporate profits is reportedly due to several factors, including the buildout of infrastructure for artificial intelligence, higher oil prices that increase profits for energy companies, higher profits for firms in the financial sector due to the performance of the stock market, and cost reductions by large firms that have shielded their margins, " Miller described.

Double digit expansion in those areas is anticipated to continue into 2028.

Employ tax revenue is additionally on the rise. Miller informed the lawmakers and Governor Reeves that the robust expansion seen last fiscal year has continued into this fiscal year, adding that transfers were 13.1% higher during the first three months of this fiscal year, totaling $15 million. When compared to the current employ tax estimates, those revenues climbed by 17.9% as of September. Miller attributed those increases to the expansion of online purchases. Regarding the Author(s).

Jeremy Pittari is a lifelong resident of the Gulf Coast. Born and raised in Slidell, La., he moved to South Mississippi in the early 90s. Jeremy earned an associate in arts from Pearl River Community College and went on to attend the University of Southern Mississippi, where he earned a bachelor's of arts in journalism. A week after Hurricane Katrina, he began an internship as a reporter with the community newspaper in Pearl River County. After graduation, he accepted a full-time position at that news outlet where he covered the recovery process post Katrina in Pearl River and Hancock Counties. For almost 17 years he wrote concerning local administration, education, law enforcement, crime, business and a variety of other topics. Email Jeremy: [email protected].

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Taken together, the developments around lawmakers, Governor expect higher revenues, adopt $7.8 billion estimated revenue for Fiscal point to a situation that is still moving, and the coming days should bring more clarity.