Income taxes in Mississippi are combined between state and local taxation so personal income tax rate can be as high as 10% Like other states, there are excise taxes of liquor, beer and cigarettes, as well as vehicle taxes. There are also property taxes that must be given consideration. Tax returns are due on April 15.
Mississippi state sales tax – 7%, (health, residential utilities, motor fuel, newspapers, Medicare/Medicaid payments and prescription drugs exempt). This is in addition to local sales taxes that can be tacked on, up to 3%. Use taxes may be applicable for purchases made out of state for use in Mississippi. Sales tax burden higher than national average.
Mississippi personal income tax
There are three tax brackets:
- 3 percent on the first $5,000 of taxable income.
- 4 percent on taxable income between $5,001 and $10,000.
- 5 percent on taxable income of $10,001 and above. A great number of Mississippi residents will pay in the top tax bracket.
This is a lower tax burden than the national average. Casino winnings that are reported to the IRS are subject to a 3% tax.
Mississippi excise taxes
Taxes assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes.
- $.68 per package of 20 cigarettes
- $6.75/gallon on spirits
- $.427 per gallon of beer or table wine
- $.18/gallon on gasoline
Mississippi inheritance tax
There are no longer taxes on inheritance and estates in Mississippi. Only federal laws are in effect.
Mississippi payroll taxes
State Disability Insurance – none
State Unemployment Insurance – .85% to 5.40%, wage base is $14,000. New employer contribution is 1.15%.
Workforce training enhancement tax rate is .3%.
State minimum wage follows federal law.
Mississippi state property tax
Property tax is broken up into five categories that encompass both real estate and other property.
- Class I -- Single-family owner-occupied, residential real property: 10 percent.
- Class II -- All other real property: 15 percent.
- Class III -- Personal property: 15 percent.
- Class IV -- Public service property assessed by the state or county: 30 percent.
- Class V -- Motor vehicles: 30 percent.
The homestead exemption is $300 for all homeowners.
Mississippi state corporate tax
The top tax rate for corporations in Mississippi is 5% for corporations grossing $10,000 or more. This comparatively lower than other states.
There are personal exemptions from taxation that total $6,000 for individuals and $12,300 for couples. Dependents are subject to a $1,500 exemption. Those 65 and older receive a $1,500 exemption.
Most pensions and retirement is exempt from state taxes. Social security income is also not taxed.
There are two property tax refund programs for homeowners, each depending on income and property tax assessed.
Military retirement pay is not taxed. This includes benefits passed to the surviving spouse. Military disability and veteran’s pensions are almost always exempt from federal and Mississippi state taxation.