Tool | January 2018

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, sin products, property, and more -- across the U.S.


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The Bottom Line
Map of Mississippi

Most Tax-Friendly

The Magnolia State, one of Kiplinger's top ten most tax-friendly states, is home to some of the cheapest property taxes in the nation. The state's top income tax rate of 5% hits early, but beginning in 2018 income taxes will be lowered.

Sales Tax

7% state levy. Only two localties, Jackson (1%) and Tupelo (0.25%) add to that, making the average combined rate is 7.07%, according to the Tax Foundation. Groceries are fully taxable.

Income Tax Range

Low: 3% (on less than $5,000 of taxable income)

High: 5% (on more than $10,000 of taxable income)

Effective income tax rate: 4.6%/individual, 4.9%/joint

See’s Retiree Tax Map to learn how Mississippi taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.19 per gallon. Hancock, Harrison and Jackson counties charge an additional $0.03 to fund sea wall construction..
Diesel: $0.18 per gallon.

Property Taxes

The median property tax on Mississippi's median home value of $103,100 is $813.

See’s Retiree Tax Map for details on tax breaks for seniors in Mississippi.

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

Beer and hard cider: $0.43 per gallon (up to 6% alcohol)
Wine: $0.35 per gallon
Sparkling wine: $1 per gallon
Liquor: $7.74 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.

Cigarettes: $0.68 per pack
Other tobacco products: 15% of the wholesale price

Travel Taxes

Hotel: There is no statewide lodging tax. Localities, however, can add their own lodging taxes; none is higher than 3%. The 7% state sales tax is also due.
Rental cars: 6%. A 5% sales tax, 2% below the general rate, is also due.

Taxes On Wireless Service


Inheritance and Estate Taxes

There is no inheritance tax or estate tax.

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