Navigating the complexities of state taxes can be daunting, but understanding Mississippi's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of The Magnolia State's tax system, from income and sales taxes to property taxes and retirement benefits.
Mississippi state tax: Overview
If you're thinking about settling down in Mississippi, especially in retirement, you might be happy to know the state keeps property taxes relatively low.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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 homeowners here pay less in property taxes than the national average. And most retirement income is tax-free, which can make a difference when budgeting for retirement.
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. But 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.]
Mississippi income tax rate
Mississippi has a flat 4.4% 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
The sales tax rate in Mississippi is 7% according to the Tax Foundation. Some localities make for an average combined sales tax rate of 7.06%.
- Groceries: Taxable
- Clothing: Taxable
- Motor Vehicles: Taxable (5%)
- Prescription Drugs: Taxable
However, Mississippi holds two sales tax holidays every year, one of which focuses on back-to-school essentials. For more information, check out Kiplinger's report, Mississippi Tax-Free Weekend 2025.
Property taxes in Mississippi
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
Product | Tax Amount |
|---|---|
Gasoline | $0.18 per gallon |
Diesel | $0.18 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
-
Major Insurers Scale Back Medicare Advantage and Part D Plans for 2026. What You Need to Know.Beneficiaries enrolled in Medicare Advantage and Part D prescription drug plans might be losing their plan as UnitedHealthcare, Humana, and Aetna (CVS Health) scale back offerings for 2026.
-
I want to retire, but I have to keep working so my adult kids have insurance. Help!It's a tricky period when your adult child is under 26 but needs health insurance. We ask financial experts for advice.
-
Ohio Property Tax Shock: Why Your New Assessment Is So High (And What Comes Next)State Taxes Higher home valuations in Ohio have led to homeowner property tax relief. But is it enough?
-
Florida Residents Could Soon Get Property Tax ReliefProperty Tax The push for a solution to end high property taxes could lead to significant tax cuts in the Sunshine State next year.
-
New Tax Rules: Income the IRS Won’t Touch in 2025Income Taxes From financial gifts to Roth withdrawal rules, here’s what income stays tax-free under the new Trump 2025 tax bill, and some information on what’s changed.
-
Three Popular Tax Breaks Are Gone for Good in 2026Tax Breaks Here's a list of federal tax deductions and credits that you can't claim in the 2026 tax year. Plus, high-income earners could get hit by a 'surprise' tax bill.
-
Tax Brackets 2025 Quiz: How Much Do You Know?Quiz Test your knowledge of IRS rules that impact how much money you keep in your wallet.
-
About 40% of Heirs Say They Can’t Afford an Inherited HomeEstate Planning The ‘Great Wealth Transfer’ may not help with high property taxes, soaring homeownership costs, and liquidity issues in 2025.
-
Retirees Face a Growing Capital Gains Tax Trap: What's Next?Home Sales A changing housing market and unchanged IRS exclusion amounts can add up to a headache for many homeowners. Will Congress offer a fix?
-
New York Inflation Refund Checks Are Coming Soon: What to Know NowTax Relief Inflation relief checks are on the way for over 8 million New York taxpayers. Here's a full breakdown of who gets a payment and when you may expect yours.
