Mississippi Tax Guide 2025

Explore Mississippi's 2025 state tax rates for income, sales, property, retirement, and more. Learn how Mississippi compares nationwide.

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Mississippi state tax: Overview

If you're thinking about settling down in Mississippi, especially in retirement, you’ll be happy to know the state keeps property taxes relatively low. In fact, homeowners here pay less in property taxes than the national average. Even better? Most retirement income is tax-free, which can make a big difference when budgeting for your golden years.

That said, the state does lean a bit heavier on sales taxes. Mississippi is one of the few places that still taxes groceries, which can catch some newcomers off guard. The good news? Local governments typically don’t pile on extra sales tax, so what you see at the register is usually what you get.


[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

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Mississippi has a flat 4.70% individual income tax rate.

Mississippi retirement taxes

Retirement income is exempt in Mississippi, but other types of income (including early withdrawals from retirement accounts) are still taxable. However, the income tax rate on taxable income is low, and it is set to decrease in the coming years.

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

Mississippi sales tax

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The sales tax rate in Mississippi is 7%. According to the Tax Foundation, with some localities that make for an average combined sales tax rate of 7.06%.

  • Groceries: Taxable
  • Clothing: Taxable
  • Motor Vehicles: Taxable (5%)
  • Prescription Drugs: Taxable

Property taxes in Mississippi

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In Mississippi, the property tax rate paid is 0.70% 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 $7,500 of assessed value.


Mississippi gas tax

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Product

Tax Amount

Gasoline

$0.18 per gallon

Diesel

$0.18 per gallon


Mississippi taxes on alcohol and tobacco

Mississippi tobacco taxes

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Product

Amount

Cigarettes

$0.68 per pack of 20

Other Tobacco Products

15% of the manufacturer's list price

Mississippi alcohol taxes

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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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Kelley R. Taylor
Senior Tax Editor, Kiplinger.com

As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.