State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. 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 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 2020, the first $3,000 is exempt from the state's lowest 3% bracket. By 2022, the first $5,000 of taxable income will be exempt. Income Tax Range Low: 3% (on taxable income of $3,000 or more)High: 5% (on more than $10,000 of taxable income) 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: TaxableClothing: TaxableMotor 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 packOther tobacco products: 15% of the wholesale priceBeer: $0.43 per gallonWine: $0.35 per gallon ($1 if sparkling)Liquor: $8.11 per gallonLiquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation. 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.