State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

Mississippi State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.


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The Bottom Line
Flag of Mississippi

Mixed Tax Picture

The Magnolia State is home to some of the cheapest property taxes in the nation. Its income tax levy, already fairly low, is being lightened. For 2021, the first $4,000 is exempt from the state's lowest 3% bracket. In 2022, the first $5,000 of taxable income will be exempt.

Income Tax Range

Low: 3% (on taxable income from $3,001 to $5,000)

High: 5% (on taxable income over $10,000)

Sales Tax

7% state levy. Only two localities, Jackson (1%) and Tupelo (0.25%) add to that. According to the Tax Foundation, that makes for an average combined rate of 7.07%.

Groceries: Taxable
Clothing: Taxable
Motor Vehicles: Taxable (5%)
Prescription Drugs: Exempt

Real Property Taxes

In Mississippi, the median property tax rate is $787 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 18.79¢ per gallon. Hancock, Harrison and Jackson counties charge an additional 3¢ per gallon to fund sea wall construction..
Diesel: 18.4¢ per gallon.

Sin Taxes

Cigarettes: $0.68 per pack
Other tobacco products: 15% of the wholesale price

Beer: $0.43 per gallon
Wine: $0.35 per gallon ($1 if sparkling)
Liquor: $2.50 per gallon

Annual Car Taxes and Fees

An annual vehicle property tax based on the car's age and value is imposed. Rates are set at the county level. Values are determined by the State Tax Commission using information from a nationwide valuation service.

Estate and Inheritance Taxes

No estate or inheritance tax.