Mississippi state tax: Overview
Mississippi has comparatively low property tax rates compared to other states. The state’s median annual property tax rate is well below the U.S. average. Plus, the state’s income tax burden is being lessened. Older adults might like that most retirement income is exempt from Mississippi tax.
Sales taxes are on the high end, though, which balances out some of the good news on property and income taxes. Mississippi is one of a minority of states that charges sales tax on groceries. But localities add very 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.]
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Mississippi income taxes
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MIssissippi has a flast 5% individual income tax rate for 2023. That rate will gradually lower, due to legislation, in subsequent years.
- 4.7% in 2024
- 4.4% in 2025
- 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. According to the Tax Foundation, that makes for an average combined rate of 7.07%.
- Groceries: Taxable
- Clothing: Taxable
- Motor Vehicles: Taxable (5%)
- Prescription Drugs: Exempt
Property taxes in Mississippi
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In Mississippi, the property tax rate paid is .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 taxes (motor fuel)
| 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 | $0.43 per gallon |
| Liquor | State controlled |
Source: Sales Tax Handbook and Mississippi Department of Revenue
Mississippi estate and inheritance taxes
Mississippi does not have estate or inheritance tax.