State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2021

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

One thing the Magnolia State has going for it is a comparatively low statewide median property tax rate. Plus, the state's income tax burden is being lightened. In 2022, the first $5,000 of taxable income is exempt, the first $10,000 of income is exempt starting in 2023, and the tax rate on income above $10,000 will gradually go down starting in 2024. Sales taxes are on the high end, though, which balances out some of the good news on property and income taxes.

Income Tax Range

Low: 3% (on taxable income from $4,001 to $5,000)

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

Beginning in 2022, there is no tax on the first $5,000 of taxable income. The lowest rate will be 4% on taxable income from $5,001 to $10,000.

Starting in 2023, there is no tax on the first $10,000 of taxable income. The tax rate on taxable income above $10,000 will be reduced to 4.7% in 2024, 4.4% in 2025, and 4% in 2026 and thereafter.

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 $795 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.