Mississippi State Tax Rate

Mississippi’s tax system is relatively straightforward compared to many states.

The state uses a flat individual income tax rate, applies a statewide sales tax, and imposes graduated corporate income taxes.

Understanding how each tax works can help residents and businesses better plan, and filing electronically makes managing these taxes much easier.

Mississippi Individual Income Tax

Mississippi uses a flat income tax structure for most individual taxpayers.

How the Income Tax Works

• 0% tax on the first $10,000 of taxable income
• 4.4% tax on all taxable income above $10,000

This structure effectively exempts lower-income earnings while applying a single rate to income beyond the threshold.

📌 Example:
If your Mississippi taxable income is $40,000:

• The first $10,000 is taxed at 0%
• The remaining $30,000 is taxed at 4.4%
• Mississippi income tax owed would be approximately $1,320

Mississippi Sales Tax

Mississippi relies heavily on sales tax revenue.

State Sales Tax Rate

• 7% on most tangible personal property and many services

Unlike some states, groceries are fully taxed at the standard 7% rate.

State and Local Combined Rate

• The average combined state and local sales tax rate is approximately 7.06%
• Local governments may add small additional taxes in certain areas

This means the amount you pay at checkout can vary slightly depending on where you live or shop.

Mississippi Corporate Income Tax

Businesses operating in Mississippi may be subject to corporate income tax.

Corporate Tax Rates

• Graduated rates ranging from 4% to 5%
• Higher taxable income levels are subject to higher rates

These taxes apply to C corporations doing business in the state.

Other Important Mississippi Taxes

Property Tax

• Mississippi has low property taxes compared to the national average
• Effective property tax rate is approximately 0.58% for owner-occupied homes

This makes Mississippi attractive for homeowners and retirees.

Gasoline Tax

• Mississippi gas tax is 21.4 cents per gallon
• This tax is included in the price you pay at the pump

Why Electronic Filing Is Recommended

Whether you’re filing an individual or business tax return, electronic filing (e-filing) offers major advantages in Mississippi.

Benefits of E-Filing

• Faster processing and refunds
• Automatic tax calculations
• Fewer math and reporting errors
• Immediate confirmation of filing
• Easier recordkeeping for future years

E-filing is especially helpful for calculating Mississippi’s flat income tax correctly and ensuring deductions and credits are applied accurately.

Bottom Line

• Mississippi has a flat 4.4% individual income tax, with the first $10,000 taxed at 0%
• The state sales tax rate is 7%, including groceries
• Corporate income taxes range from 4% to 5%
• Property taxes are relatively low
• Gas tax is 21.4 cents per gallon

Understanding Mississippi’s tax structure—and filing electronically—can help you stay compliant, reduce errors, and get refunds faster.