Personal income tax
Mississippi collects income taxes from its residents utilizing three tax brackets.
For single taxpayers:
- 3 percent on the first $5,000 of taxable income.
- 4 percent on taxable income between $5,001 and $10,000.
- 5 percent on taxable income of $10,001 and above.
Married couples filing a combined return (i.e., both spouses work) can opt to have each spouse calculate tax liability separately and add the results.
Residents should file tax returns by April 15 or the next business day if that date falls on a weekend or holiday.
The retail sales and use tax rate in Mississippi is 7 percent.
Tourism and economic development taxes also are collected in some jurisdictions.
Personal and real property taxes
For purposes of assessment for ad valorem taxes, taxable property is divided into five classes and is assessed at a percentage of its true value as follows:
- Class I -- Single-family owner-occupied, residential real property: 10 percent.
- Class II -- All other real property: 15 percent.
- Class III -- Personal property: 15 percent.
- Class IV -- Public service property assessed by the state or county: 30 percent.
- Class V -- Motor vehicles: 30 percent.
Inheritance and estate taxes
Mississippi has no inheritance tax. Since the state's tax was linked to the federal estate tax that is being phased out, Mississippi no longer collects an estate tax.
Other Mississippi tax facts
Retirement income, pensions and annuities generally are not subject to Mississippi income tax.
Since Jan. 1, 2002, Mississippi income tax law has required casinos to withhold a nonrefundable income tax at the rate of 3 percent on gambling winnings that are required to be reported to the Internal Revenue Service.
Mississippi taxpayers can find out the status of their refunds by using the Department of Revenue's online tracking system.