State taxes: Mississippi

Taxes » Income Taxes » State Taxes » Mississippi

Mississippi has three state income tax rates: 3 percent, 4 percent and 5 percent. These rates are the same for individuals, all filing statuses, as well as for businesses. More on Mississippi taxes can be found in the tabbed pages below.

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.

Sales taxes

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 credit for states, which was 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 IRS.

Mississippi taxpayers can find out the status of their refunds by using the Department of Revenue's online tracking system.

For more information, call the Mississippi State Tax Commission at (601) 923-7000 or visit its website.

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