Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S. Go to the Kiplinger Tax Map Mississippi Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Tax-Friendly 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 2018, the first $1,000 is exempt from the state's lowest 3% bracket. For 2019, the first $2,000 of taxable income is exempt. By 2022, the first $5,000 of taxable income will be exempt. 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%. Mississippi is one of a minority of states that tax groceries. Income Tax Range Low: 3% (on taxable income of $1,000 or more)High: 5% (on more than $10,000 of taxable income)Income tax rates are being gradually reduced. By 2022, the first $5,000 of taxable income will be exempt. Motor Fuel Taxes Gasoline: $0.1879 per gallon. Hancock, Harrison and Jackson counties charge an additional $0.0300 to fund sea wall construction.. Diesel: $0.1840 per gallon. Property Taxes In Mississippi, residents pay an average of $862 in taxes per $100,000 of assessed home value. Vehicle Taxes Vehicle sales are taxed at 5%, which is 2% below the general rate. Mississippi also charges an annual property tax on vehicles based on their age and value. Rates for this tax are set at the county level. In Lafayette County, for example, you’d pay $285 on a vehicle valued at $20,000. Sin Taxes Cigarettes: $0.68 per packOther tobacco products: 15% of the wholesale priceBeer and hard cider: $0.43 per gallon (up to 6% alcohol)Wine: N/ALiquor: $8.15 per gallon Mississippi directly controls the distribution and sale of alcohol. Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation. Taxes On Wireless Service 9.59% Inheritance and Estate Taxes None. About our methodology