Mississippi state tax: Overview
Mississippi has relatively low property tax rates compared to other states. The state's median annual property tax rate is below the U.S. average. Most retirement income is exempt from Mississippi tax.
However, sales taxes are on the high end in the Magnolia State. Mississippi is one of a few states that charges sales tax on groceries. But localities add 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 tax rate
For 2024, Mississippi had a flat 4.70% individual income tax rate. That rate is set to fall gradually in the coming years.
Mississippi is reducing its flat individual income tax rate to 4.4% for 2025 and then to 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 amount. According to the Tax Foundation, that makes for an average combined sales tax rate of 7.07%.
- Groceries: Taxable
- Clothing: Taxable
- Motor Vehicles: Taxable (5%)
- Prescription Drugs: Taxable
Property taxes in Mississippi
In Mississippi, the property tax rate paid is 0.67% 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 tax
| Product | Tax Amount |
|---|---|
| Gasoline | 18 cents per gallon |
| Diesel | 18 cents per gallon |
Mississippi taxes on alcohol and tobacco
Mississippi tobacco taxes
| Product | Amount |
|---|---|
| Cigarettes | $0.68 per pack of 20 |
| Other Tobacco Products | 15% of the manufacturer's list price |
Mississippi alcohol taxes
| Product | Tax Amount |
|---|---|
| Beer | $0.43 per gallon |
| Wine | $0.35 per gallon |
| Liquor | State controlled |
Source: The Sales Tax Handbook
Mississippi estate and inheritance taxes
Mississippi does not have estate or inheritance tax.
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