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.]
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
Related Content
-
What 401(k) Savers Near Retirement Can Do Amid Market VolatilityWhether retirement is years away, a year or two out, or in the rearview mirror, here's how to handle uncertainty in your 401(k).
-
The New Space Age Takes OffThe Kiplinger Letter From fast broadband to SOS texting, space has never been more embedded in peoples’ lives. The future is even more exciting for rockets, satellites and emerging space tech.
-
Free IRS Tax Filing for 30 Million People: Will It Continue Under Trump?Tax Filing Direct File was piloted last year in 12 states and has since expanded to 25. But some wonder whether the program will last under the Trump administration.
-
How Caregivers for Adults Can Save on Taxes in 2025Tax Breaks Caring for your parent or spouse can be stressful, but the IRS offers tax breaks for qualifying taxpayers. Here they are.
-
U.S. Treasury to Eliminate Paper Checks: What It Means for Tax Refunds, Social SecurityTreasury President Trump signed an executive order forcing the federal government to phase out paper check disbursements by the fall.
-
IRS Layoffs Spark Delays, Doubt This Tax Season
Tax Season Tax experts say Trump’s downsizing of the IRS is already causing problems.
-
States with the Highest Income Tax Rates for RetireesState Tax You may reconsider living and retiring in one of these states due to high taxes.
-
AI Tax Scams Target Middle and Older Adults: What to KnowScams Whether you’re a retiree or Gen Z, scammers can gouge big financial losses with the help of artificial intelligence.
-
Tax-Deductible Home Improvements for Retirement in 2025Retirement Taxes Your aging-in-place plan could benefit from the medical expense tax deduction. But watch out for capital gains and property taxes.
-
Don’t Make These Five Mistakes on Your Tax ReturnTax Filing The IRS warns taxpayers to watch out for these common errors as they prepare to file.
