Mississippi State Tax Guide

Mississippi state tax: Overview

Mississippi has comparatively low property tax rates compared to other states. The state's median annual property tax rate is well below the U.S. average. Plus, the state's income tax burden is being lessened. Older adults might like that most retirement income is exempt from Mississippi tax.

Sales taxes are on the high end, though, which balances out some of the good news on property and income taxes. Mississippi is one of a minority of states that charges sales tax on groceries. But localities add very little, if anything, on top of the state's rate.

[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.] 

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Mississippi income taxes

MIssissippi has a flast 5% individual income tax rate for 2023. That rate will gradually lower, due to legislation, in subsequent years.

• 4.7% in 2024
• 4.4% in 2025
• 4.0% in 2026

• Social Security: Not taxable
• Pensions: Not taxable
• 401(k) and IRA Distributions: Not taxable

Mississippi sales tax

The sales tax rate in Mississippi is 7%. 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

Property taxes in Mississippi

In Mississippi, the property tax rate paid is .67% of assessed home value.

For homeowners age 65 and older or who are totally disabled, there is a property tax homestead exemption on the first $75,000 of assessed value.

Mississippi gas taxes (motor fuel)

Mississippi taxes on alcohol and tobacco

Mississippi Tobacco Taxes

Mississippi Alcohol Taxes

Source: Sales Tax Handbook and Mississippi Department of Revenue

Mississippi estate and inheritance taxes

Mississippi does not have estate or inheritance tax.