Mississippi State Tax Guide

Mississippi state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.

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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

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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

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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)

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ProductTax Amount
Gasoline18 cents per gallon
Diesel18 cents per gallon

Mississippi taxes on alcohol and tobacco

Mississippi Tobacco Taxes

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Cigarettes$0.68 per pack of 20
Other Tobacco Products15% of the manufacturer's list price

Mississippi Alcohol Taxes

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ProductTax Amount
Beer$0.43 per gallon
Wine$0.43 per gallon
LiquorState controlled

Source: Sales Tax Handbook and Mississippi Department of Revenue

Mississippi estate and inheritance taxes

Mississippi does not have estate or inheritance tax.

Rocky Mengle

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.

With contributions from