Mississippi State Taxes
Quick Tax Facts
Income Tax: 5%
State Sales Tax: 7%
Median Property Tax: $508
Overview
Mississippi, also known as the Magnolia State, is steeped in southern charm. There’s an endless supply of sunshine and comfort food. Although the cost of living is fairly low, it may not be the best choice for everyone. The state is not known for its diversity and its public education system (K-12) is sub-par. On the tax side of things, however, residents have one of the lowest property tax rates in the country. Most retirement income is also tax exempt.
Mississippi Income Tax
Mississippi passed legislation in 2022 that moved its income tax to a flat rate of 5% in 2023 for income over $10,000. Previously, residents were taxed 4% on income between $5,001 and $10,000.
The tax rate will decrease annually until it reaches 4% in 2026. After that date, the state legislature can consider additional reductions in the flat tax rate.
Who Must File?
If any of the following apply, you must file a Mississippi state income tax return:
- You have Mississippi income tax withheld from your wages.
- You are a part-year or non-resident with income tax by Mississippi.
- You are a Mississippi resident temporarily employed outside of the U.S. or working in another state.
- You are a single resident and have gross income over $8,300 plus $1,500 per dependent.
- You are a married resident with a combined gross income of more than $16,600 plus $1,500 per dependent.
- You are a minor (dependent) with gross income in excess of $8,300.
Mississippi Sales Tax
Mississippi has a state sales tax rate of 7% that is levied on retail sales, tangible personal property, beer, and other alcoholic beverages. There are, however, reduced rates for certain types of sales. Mississippi has two local tax levies at the city level and none at the county level. The City of Tupelo levies an additional .25% on all retail sales. The City of Jackson levies an additional 1% on certain retail sales.
Mississippi Property Taxes
Mississippi has one of the lowest property tax rates in the United States. Taxes are due on February 1 for property assessed the preceding year. Residents who are 65 or older, or are totally disabled, are exempt from paying property taxes on the first $75,000 of true value in their home if they are otherwise eligible for a homestead exemption.
The median property tax paid in Mississippi is $508 (median home value of $98,000). Madison County has the highest property tax at an average of $1,204. The lowest amount is $281 in Amite County.
| Highest | $1204 |
|---|---|
| Median | $508 |
| Lowest | $281 |
Yearly Cost Per Resident
Mississippi Tax Holidays
Mississippi hosts two annual tax holidays.
- Annual Sales Tax Holiday (July) – includes clothing and specific school supplies valued at under $100 per item. Local sales tax may still apply.
- Second Amendment Sales Tax Holiday (August) – includes purchases of ammunition, firearms, and certain hunting supplies. No state or local sales tax will be levied during this time.
Mississippi Tax Resources
If you need assistance preparing your Mississippi state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Mississippi Department of Revenue website for additional resources.
- Payment Options
- Individual Income Tax Forms
- File a Return
- Refund Hotline: 601-923-7801
- General Tax Help: 601-923-7700
