State taxes: Mississippi


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Mississippi has 3 state income tax rates: 3%, 4% and 5%. These rates are the same for 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 3 tax brackets.

For single taxpayers:

  • 3% on the first $5,000 of taxable income.
  • 4% on taxable income between $5,001 and $10,000.
  • 5% 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 sales tax in Mississippi is 6.875%.

Mississippi’s state tax department also administers sales tax for several local governments. The Mississippi Department of Revenue provides an online sales tax rate calculator to determine these rates. The department also issues a fact sheet on special local taxes.

The state also imposes a use tax on items purchased elsewhere but used within Mississippi.

Personal and real property taxes

The retail sales and use tax rate in Mississippi is 7%.

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 5 classes and is assessed at a percentage of its true value as follows:

  • Class I — Single-family, owner-occupied residential real property: 10%.
  • Class II — All other real property: 15%.
  • Class III — Personal property: 15%.
  • Class IV — Public service property assessed by the state or county: 30%.
  • Class V — Motor vehicles: 30%.

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% 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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