MISSISSIPPI
Return to Retiree Tax Map
NICKNAME
The Magnolia State
BOTTOM LINE: TAX-FRIENDLY
Mississippi offers a sweet income-tax deal for retirees. It not only exempts Social Security benefits from state income taxes, but it also excludes all qualified retirement income from state income taxes. Remaining income is taxed at a maximum 5%. Mississippi is home to some of the cheapest property taxes in the nation. Residential property is taxed at 10% of its assessed value, and seniors qualify for a homestead exemption on the first $75,000 of value.
STATE SALES TAX
7%. Prescription drugs, residential utilities, motor fuel, newspapers, health care services, and payments made by Medicare and Medicaid are exempt.
INCOME-TAX RANGE
Low: 3% (on less than $5,000 of taxable income)
High: 5% (on more than $10,000 of taxable income)
SOCIAL SECURITY
Social Security benefits are not taxed.
EXEMPTIONS FOR OTHER RETIREMENT INCOME
Qualified retirement income -- including income from IRAs, 401(k)s, 403(b)s, Keoghs, and qualified public and private pension plans -- is exempt from state income tax. Interest income from federal securities and obligations of Mississippi and its political subdivisions are all exempt.
PROPERTY TAXES
Single-family residential property is taxed at 10% of its assessed value. The state offers a homestead exemption of up to $300 for all eligible taxpayers.
Tax breaks for seniors: For homeowners 65 and older or totally disabled, there is an exemption on the first $75,000 of value.
INHERITANCE AND ESTATE TAXES
Mississippi has neither an inheritance tax nor an estate tax.
Visit RetirementLiving.com for a complete rundown of taxes in Mississippi.
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