Overview of Mississippi Taxes
Mississippi has a progressive state income tax that is slightly lower than the national average. The state sales tax is slightly above the national average. Property taxes are among the lowest in the nation.
Number of Personal Exemptions
Your Income Taxes Breakdown
|Tax Type||Marginal |
|2018 Trump Taxes*|
|Total Income Taxes|
|Income After Taxes|
* These will be the taxes owed for the 2018 - 2019 filing season.
Under the Trump Tax Plan (2018-2019 filing season), your Federal Income Tax will be and your FICA will be .
Changes to Your Federal Income
Taxes Under the Trump Tax Plan
- Your marginal federal income tax rate will
- Your effective federal income tax rate will
- Your federal income taxes will
Total Estimated Tax Burden
Total Estimated Tax Burden $
Percent of income to taxes = %
- Our Tax Expert
Jennifer Mansfield, CPA Tax
Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
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Mississippi state tax quick facts
The Mississippi state government collects several types of taxes. The most significant are its income and sales taxes. While the personal income tax, which has a top rate of 5%, is slightly lower than the national average for state income taxes, the statewide sales tax of 7% is slightly above the national average.
That state sales tax used to be the only such tax collected in the state, but the capital city of Jackson recently enacted its own additional sales tax of 1%. Jackson’s tax represents the only local sales tax in the state. Below, we will take a close look at these tax rates, as well as Mississippi’s property taxes.
Mississippi Income Tax
The income tax in the Magnolia State is based on three tax brackets, with rates of 3%, 4% and 5%. The tax brackets for all four filing statuses are shown in the table below.
Income Tax Brackets
|Mississippi Taxable Income||Rate|
|$0 - $5,000||3.00%|
|$5,000 - $10,000||4.00%|
Those tax rates do not apply to total income, but rather taxable income, which accounts for deductions and exemptions. Mississippi allows the same itemized deductions as the IRS, with the exception of the deduction for state and local income taxes. The standard deduction in Mississippi is $2,300 for single filers and married individuals filing separately, $4,600 for married individuals filing jointly and $3,400 for heads of household. If itemized deductions are less than the standard deduction, taxpayers receive the standard deduction.
Along with those deductions, there is also a personal exemption in Mississippi. The exemption is $6,000 for single filers and married individuals filing separately, $12,000 for married individuals filing jointly and $8,000 for heads of household. Taxpayers can claim additional exemptions of $1,500 per dependent. If you are looking to find some help on your taxes, consider tax preparation software like Credit Karma and TaxAct to help file your return.
Mississippi does not have some of the tax credits common to other states, such as the Earned Income Tax Credit or the Child and Dependent Care Tax Credit.
Mississippi Sales Tax
There is a single, statewide sales tax of 7% in Mississippi. That is the same, everywhere in the state, with one exception. As of 2015, the city of Jackson, Mississippi’s state capital, collects its own additional sales tax of 1%. This means the total sales tax there is 8%.
Tax is collected on sales of tangible personal property as well as certain services in Mississippi. Taxable services include installation or repair of air conditioning units, bowling fees, car-washing, electricians, furniture repair, hotels and motels, laundering and dry cleaning, parking garages and lots, television service and woodworking.
Tangible personal property includes most physical goods, such as furniture, clothing and electronics, but there are some exceptions. Mississippi is one of just two states to tax all food at the full sales tax rate. Groceries and prepared food alike are subject to the statewide 7% sales tax, and there are additional restaurant taxes in some areas. On the other hand, prescription drugs are not taxed in Mississippi.
Mississippi has two sales tax holidays. The first typically occurs on Friday and Saturday of the last weekend in July. During those two days, clothing and footwear items costing less than $100 can be purchased sales tax free. The second holiday is called the “Mississippi Second Amendment Sales Tax Holiday.” It occurs over the first weekend in September, during which time firearms, ammunition and hunting supplies can be purchased free of state sales tax.
Mississippi Property Tax
Taxes on real property in Mississippi are among the lowest in the nation. The average effective property tax rate (taxes per year as a percentage of home value) in the Magnolia State is just 0.8%, the 15th-lowest rate in the nation. However, because of the relatively low home values in Mississippi, the total annual property tax payment in Mississippi is just $841, which ranks as the sixth-lowest payment in the country. If such low property taxes caught your attention and you’re considering buying a home in Mississippi, or if you’re thinking about refinancing a property there, check out our Mississippi mortgage guide for information about rates and mortgages in Mississippi.
Mississippi Gas Tax
Regular gasoline in Mississippi is taxed at a rate 18.79 cents per gallon, the fifth lowest gas tax in the country. Diesel fuel faces a tax of 18.40 cents per gallon.
Mississippi Capital Gains Tax
Long-term capital gains are taxed at the regular income tax rates in Mississippi, with a few exceptions. However, gains from the sale of shares in financial institutions based in Mississippi, as well as domestic limited partnerships and limited liability companies, may be exempt in some situations.
Mississippi Cigarette Tax
According to the Campaign for Tobacco Free Kids, Mississippi’s cigarette tax is the 13th-lowest in the country. It totals 68 cents per pack of 20 cigarettes.
Mississippi Alcohol Tax
Mississippi’s alcoholic beverage taxes, on the other hand, rank in the top 15 nationwide. The tax on liquor is equal to $7.74 per gallon.
Photo credit: flickr
Places with the Lowest Tax Burden
Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.
Where you live can have a big impact on both which types of taxes you have to pay each year and how much money you spend on them. SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country and ranked the lowest to highest tax burden.
To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.
In order to determine sales tax burden we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income less income tax. This product is then multiplied by 35% to estimate the sales tax paid.
For property taxes, we compared the median property taxes paid in each county.
For fuel taxes, we first distributed statewide vehicle miles traveled down to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.
We then added the dollar amount for income, sales, property and fuel taxes to rank the counties to calculate a total tax burden.