Catastrophe Savings Account tax treatment

How it works

Mississippi Department of Revenue guidance says a Mississippi income taxpayer may establish one Catastrophe Savings Account for the taxpayer’s legal residence. The account is intended to cover insurance deductibles and other uninsured portions of losses from a hurricane, flood, windstorm, or other catastrophic event.

What the money covers

The funds may be used to pay:

• An insurance deductible under a policy covering the taxpayer’s Mississippi legal residence if the policy covers hurricane, flood, windstorm, or other catastrophic event damage.
• Catastrophic event damages not covered after the deductible is paid.
• Self-insured losses for the taxpayer’s legal residence from a hurricane, flood, windstorm, or other catastrophic event.

Tax treatment

MID’s 2025 release says a Catastrophe Savings Account is tax-advantaged and that the account is exempt from state income tax, while federal taxes still apply.

How to apply

The official FAQ page is focused on tax rules and account use, not an application workflow for home hardening. It does not describe a state-funded grant or rebate.

Timing and deadlines

No deadlines are stated on the official page.