Mississippi State Tax
Mississippi Income Tax
Mississippi is a state with a generally favorable tax climate. It is one of the states with the lowest tax rates in the United States. Residents have a very low tax burden, and retirees are exempt from paying state income tax for individual retirement account contributions.
Mississippi personal income tax rates follow a progressive three-tiered structure. The first $5000 of taxable income is subject to 3% income tax, the next $5000 is taxed 4%, and income over $10,000 is taxed at 5%.
Maximum marginal corporate income tax rates in Mississippi are the 3rd lowest of all states. The state collects 3% on the first $5000 of income, 4% on the next $5000, and 5% if income exceeds $10,000.
Mississippi Property Tax
Property tax rates in Mississippi are assessed according to the property’s fair market value. Nonetheless, residents still pay one of the lowest median property tax rates in the country. The average property tax collection in the state makes up only 1.11% of the residents’ annual income. The highest property tax rate is collected in Madison County and the lowest tax rate is collected in Tunica County.
Mississippi Sales Tax
The actual sales tax paid in Mississippi varies depending on the location. The state sales tax is 7%, but municipalities and cities are allowed to collect up to 2% additional local sales tax. In contrast to the low income and property tax rates in the state, Mississippi maximum marginal sales tax rates are one of the highest in the country. Unlike other states, Mississippi does not exempt groceries, raw food, and prescription drugs from sales tax.