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Mississippi Tax

FULL List to Mississippi Tax Forms

Individual Income Tax Forms

Form 80-100 Mississippi Resident and Non-Resident Part-Year Resident Income Tax Forms 

Corporate Income Tax Forms

Form 83-105 Mississippi Corporate Income and Franchise Tax Return

Sales Tax Forms

Form 72-315 Certificate of Interstate Sales

Form 72-340 Certificate of Prime Contract Amount

Form 72-405 Contractors Application for Material Purchase and Qualification 

Form 72-440 Sales Use Income Franchise Withholding Fuel Tax Bond

Tax Exemptions Form

Property Tax Forms

Form Application for Ad Valorem Tax Exemption

Form Personal Property Rendition

According to Mississippi state tax law, there are specifications that exist in connection to various areas of everyday life. Mississippi state sales tax law dictates how the selling and procuring of goods are to occur under the legal requirements of the state.

In addition, Mississippi state tax law sets forth requirements attached to alcohol distribution and consumption as well as tax laws concerning aspects of nature. These varying areas of Mississippi state tax law provide an equally eclectic glimpse into the ways in which it functions as a southern member of the United States.

In relation to sales tax law, retailers maintain the statewide sales tax of 7% for their products sold. As this holds true in most cases, there do exist additional statutes that may specify otherwise, thus leading to certain exemptions. Sales taxes stem from examination of both “gross proceeds of sales” and “gross income” depending upon the category of business employed.

Prior to any company or individual setting forth in pursuit of selling goods within the state of Mississippi, parties must acquire a license or permit. Mississippi tax forms must be returned, filed, and paid by the due date specified by the “State Tax Commission.” In contrast to other states, Mississippi state tax exists on wholesale sale as well as regular retail. This rate is placed upon the wholesale of alcohol. Items labeled as for actual consumption abide by an 8% wholesale Mississippi state tax.

With alcohol procurement, beer represents a particular area in which Mississippi state tax law concerns itself with. According to its regulations set forth, beer must not be composed of quantities exceeding 6% alcohol by volume. “Excise taxes” on such a beverage is congruent to about 43 cents per gallon, that of which is required to be maintained and sent in by the 15th of each calendar month. In order to sell beer in retail, application for a permit and license is required to be submitted to the appropriate district office.

If accepted, the yearly fee needed to maintain a beer permit is that of $30.00. Fees increase, however, the larger the distributor. Wholesale distributors must pay $100 every year in addition to each county they serve while manufacturers must purchase a permit for $1,000 for every area of business they take up within the state of Mississippi. Alcohol seems to represent a lucrative means for everyone involved, such as that of the state and the local retailers.

One other such Mississippi state tax, which refers to that of nature, is that of the “Timber Severance Tax.” Mississippi requires that a “severance tax” be placed on every “timber product” produced and maintained there.

Rates vary depending upon qualifications such as type, amount, or weight of each timber product. Payments and returns mirror that of excise taxes on alcohol. These aspects of tax law represent the many dimensions that Mississippi residents have already come to expect and be quite familiar with.


Introduction

As one of the most beautiful states in the southeastern part of the United States, Mississippi offers an abundance of opportunities for entrepreneurs. From its ever-growing economy to its business-friendly learning environment, Mississippi is a great place for starting a business.

However, with the joys of running a business come the regulations and obligations, including the daunting task of handling taxes. Therefore, it is important to understand the Mississippi tax system and how to handle it effectively. In this article, we will provide a comprehensive overview of the Mississippi tax laws, including its corporate, sales, and individual income taxes.

Corporate Income Tax

The Mississippi corporate income tax is a tax imposed on corporations operating in the state. The tax is computed based on the net income of the corporation, less any allowed deductions. In Mississippi, the corporate income tax rate is 3 percent on the first $5,000 of net income, 4 percent on the portion of net income between $5,001 and $10,000, and 5 percent on the portion of net income exceeding $10,000.

In summary, the Mississippi corporate income tax rate varies depending on the amount of net income. However, it is essential to note that corporations are not eligible for refundable or non-refundable tax credits, unlike individual taxpayers.

Sales Tax

The Mississippi sales tax is imposed on the sale of tangible personal property or specific services in the state. The Mississippi sales tax rate is 7 percent, and the state law requires retailers to collect and remit the tax on behalf of the state. Additionally, Mississippi requires retailers to obtain a sales permit before they can start conducting business in the state.

Nevertheless, some items are exempted from the Mississippi sales tax. Prescription drugs, for instance, are exempted from the sales tax in the state. Other exemptions include goods purchased for resale, certain business inputs such as raw materials and manufacturing equipment, and non-profit sales.

Individual Income Tax

Like most states in the United States, Mississippi has its own structure for calculating and collecting individual income tax. The Magnolia State’s individual income tax system consists of three brackets, with a maximum marginal tax rate of 5 percent. In contrast, the highest tax bracket of the federal income tax system is 37 percent. Below are the Mississippi income tax rates:

·A 3 percent tax rate applies to the first $5,000 of taxable income.

·A 4 percent tax rate applies to taxable income between $5,000.01 and $10,000.

·A 5 percent tax rate applies to taxable income over $10,000.

Moreover, Mississippi taxpayers are not allowed to claim deductions for income from qualified retirement plans or Individual Retirement Accounts (IRAs).

Alternative Minimum Tax

Mississippi’s alternative minimum tax (AMT) applies to corporations and individuals with a significant preference tax. The preference tax refers to a certain type of income that is calculated in addition to the standard earnings calculation. The AMT is calculated using a payment system for the standard tax and applies to an individual’s or corporation’s net income before the normal tax calculation.

The minimum tax is the lesser of 3.5% of the corporation’s profits after adjustments or $2,500. However, if the taxpayers’ annual gross receipts are less than $100,000, then there are no alternative minimum tax implications.

Mississippi Estate and Inheritance Tax

Mississippi estate taxes are progressive and only affect estates that fall below federal limits. The Mississippi income tax laws mirror the federal system, but the exemption threshold is different. As of 2021, Mississippi estate taxes are levied only when an individual’s estate is worth more than $5 million. Estates that fall below this threshold are not subject to State estate tax.

Furthermore, Mississippi has not imposed an inheritance tax on transfers of property or assets before 1989. Thus, Mississippi considers these types of taxes as their separate entity (estate tax), unlike other states that impose inheritance tax.

Personal Property Taxes

Mississippi imposes personal property taxes which vary depending on the type of property in question. Nevertheless, personal properties that are not used for business purposes, such as cars and trucks, are subject to personal property taxes. Taxpayers are required to return their vehicles for inspection annually and make the appropriate payment based on the assessed value of the car or truck.

Real Property Taxes

Mississippi counties and municipalities levy property taxes based on the assessed value of the property. Property taxes are the primary means by which local governments are funded, and the revenue generated pays for schools, law enforcement, and fire departments, among others.

In Mississippi, the market value of the property is multiplied by a fixed assessment ratio to arrive at its assessed value. The assessed value is then multiplied by the millage rate to determine the amount of the property tax due. Millage rates vary depending on the locality.

Conclusion

In summary, Mississippi imposes a range of taxes that are typical of many other states. These taxes include personal and real property taxes, sales taxes, individual income taxes, estate taxes, and corporate income taxes. It is essential to understand the tax laws to ensure that you comply with the regulations and avoid penalties. As you plan to establish or run your enterprise in Mississippi, consult local tax firms or attorneys for guidance on how to navigate the complex and ever-evolving Mississippi tax code.