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.]
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
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
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
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
-
I'm a Financial Planner: This Is the Key to Successful Retirement PlanningYou have to focus on what you can control — the inputs — and not obsess over what you can't control — the output. Here's how to do that.
-
Summer Is Made for Sun, Fun … and Estate Planning ConversationsNow is the time to discuss estate planning with your loved ones to ensure the Great Wealth Transfer is efficient, tax-aware and in line with your legacy goals — not Uncle Sam's.
-
2025 Virginia Tax Rebate Checks Coming Soon? What to Know NowTax Rebates Given a historic 2025 gubernatorial race, tax policy will remain a key issue for Virginians in the months ahead.
-
Summer Backyard Ideas With Added Tax Benefits for 2025Tax Tips Find out how these summer 2025 home projects can help you save on taxes next year.
-
Coverdell ESAs vs. 529 Plans: Which Should You Choose?Savings Accounts These savings accounts can offer tax benefits for school and retirement expenses. Here’s how.
-
Homeschoolers Could Soon Save on Expenses With 529 PlansSavings Accounts A new House GOP bill could change how you save for your child's homeschool education. Find out how.
-
Five ‘Big Beautiful Bill’ Tax Changes to Watch in the SenateTax Policy The House passed its version of Trump’s "One Big, Beautiful Bill." Here’s what to look for as Senate Republicans take up the mega legislation.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers QualifyTax Breaks To fulfill Trump's campaign promise, House GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?
-
Big GOP Tax Bill Could Change Your Estate Planning for 2025Tax Law The GOP might extend and increase the higher estate and gift tax exemption and AMT thresholds. What might this mean for your estate plan?
-
Ten Cheapest Places To Live in New YorkProperty Tax If you’re planning a move in New York, here are the counties with the lowest property tax bills in the Empire State.
