State Taxes at a Glance – Mississippi
| Type of Tax | 2023 |
|---|
| Individual Rates | 5.00% (flat tax) |
| Corporate / Business Tax Rates | 4.00% or 5.00% |
| Gross Receipts Tax | None |
| Sales Tax | 7.07% (average) |
| Property Taxes | 0.65% as a percentage of primary home |
| Estate or Inheritance Tax | None |
State Income Taxes in Mississippi
The state of Mississippi does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale, however they only have two tax brackets.
- 0.00% < $10,000
- 5.00% > $10,000
State Business Taxes in Mississippi
The state of Mississippi does have a business income tax. It’s broken down as follows:
- 0.00% < $5,000
- 4.00% > $5,000
- 5.00% > $10,000
Franchise taxes in Mississippi
In addition to the Corporate Business tax, Mississippi has a Franchise Tax. The Franchise Tax is assessed on $2.25 per $1,000 (or 0.25%) of the greater of capital invested or property values in this state. There is a minimum tax of $25 per entity.
Note: Franchise tax effects the following entities
- C Corporations
- S Corporations
- LLCs that have elected to be tax for Federal purposes as C or S Corporations.
As of now, the Franchise Tax is supposed to be phased out by the end of 2027, but we’ll see.
Sales and Property Taxes in Mississippi
Mississippi has the second highest states sales tax in the country (only second to California). They have two sales tax rates, one at the state level and another at the local level. The state rate is 7.0% the average local rate is .07% (total average rate for Mississippi Sales Tax is 7.07%).
Property Taxes in Mississippi – the average property tax rate for residential property in the state of Mississippi is 0.65%, making it a very inexpensive place to own property.
Mississippi DMV Taxes
Mississippi as an Ad Valorem Tax which means it’s based on the value of the vehicle, so it’s deductible on your personal tax return. You may learn more about your Mississippi’s DMV taxes here.
Mississippi Domicile
Individuals who maintain homes, apartments, or other places of abodes in Mississippi or who meet the requirements of a Mississippi voter or enjoy a Mississippi homestead exemption are legal Mississippi residents.
Mississippi Tax on Social Security Benefits
Even though Mississippi has an income tax, social security benefits are not subject to state tax in “The Magnolia State.”
Payroll Taxes in Mississippi
Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:
- Wage Base – Mississippi has a wage base of $14,000
- UI Rates – range from 0.20% to 5.60%
- Schedules – Mississippi has only one schedule regarding UI rates
Mississippi Business Entities – LLCs
Mississippi is one of the cheapest states in the country to set up your LLC. Here are some important facts:
- Mississippi does not have an annual LLC fee.
- When you register with the state, you pay a one-time fee of $50
- Secretary of State of Mississippi website – click here
Mississippi Tax Phone Numbers
Important phone numbers for the Mississippi Department of Taxation:
- Website: www.dor.ms.gov
- Phone# for Individuals – (601) 923-7700
- Phone# for Businesses – same as above