Mississippi State Tax Guide

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.] 

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Mississippi income tax rate

Mississippi has a flat 4.70% individual income tax rate. That rate is set to fall gradually in the coming years.

• 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 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

Mississippi taxes on alcohol and tobacco

Mississippi tobacco taxes

Mississippi alcohol taxes

Source: The Sales Tax Handbook

Mississippi estate and inheritance taxes

Mississippi does not have estate or inheritance tax.

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