Mississippi State Taxes: What You’ll Owe in the 2026 Tax Season

Mississippi has a low, flat income tax rate and doesn’t tax Social Security income, but it has one of the highest sales taxes in the country. That places the state in the middle of the pack among the 50 states in terms of its competitiveness on taxes, according to the Tax Foundation.

• Income tax: 4.4 percent
• Property tax: 0.58 percent (average) in 2023, according to the most recent data available from the Tax Foundation
• Sales tax: 7 percent
  

  

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Income is taxed at 4.4 percent. The first $10,000 of income for an individual or $20,000 for a married couple filing jointly is exempt, but any income above that is taxed at 4.4 percent.

Pensions, annuities and other retirement income are not subject to Mississippi income tax if the taxpayer has met the retirement plan requirements. Early distributions are not considered retirement income and may be subject to tax. 

Long-term capital gains are taxable income in Mississippi, although the state exempts gains from the sale of authorized shares in financial institutions domiciled in Mississippi.

Mississippi does not tax Social Security.

Mississippi’s property tax varies by county, but the statewide average is 0.58 percent of a property’s assessed value, according to 2023 data from the Tax Foundation, the most recent available. The lowest property tax rate in Mississippi in 2023 was 0.35 percent in Issaquena County, while the highest was 1.24 percent in Coahoma County.

The state’s lowest median property tax in 2023 was $314 in Issaquena County, while the highest was $2,071 in Madison County, according to the Tax Foundation.

• Sales tax: The general state sales tax rate is 7 percent, but the state has other sales tax rates on different products. For example, groceries have a 5 percent sales tax. For a breakdown of taxes on different products, see the Mississippi Department of Revenue website. Additionally, municipalities can add their own sales tax up to 1 percent, making the combined average and state sales tax rate 7.06 percent.
• Exemptions: Prescription medications, newspapers, utility charges and other items are exempt from sales tax in Mississippi. For a full list, click here.
• Gas and diesel: Gasoline and diesel are taxed at 21 cents per gallon.
• Vehicle tax: Vehicle purchases are taxed at 5 percent. Mississippi owners of vehicles with a gross vehicle weight of 10,000 pounds or less must also pay motor vehicle ad valorem taxes at the time of registration. The tax is calculated based on the assessed value of the vehicle multiplied by the millage rate set by the local county government. (Contact your local county tax collector for the millage rates.) Assessed value has been established as 30 percent of the manufacturer’s suggested retail price, plus a reduction of a certain percentage for depreciation over 10 years. A minimum assessed value is set at $100 for passenger vehicles.
• Alcohol: In addition to the 7 percent sales tax, Mississippi’s excise tax on alcohol is levied at 42.68 cents per gallon on beer, light wines and light spirits and is paid by wholesalers on shipments received in the state. There is an additional $2.50 per gallon excise tax on distilled spirits, $1 per gallon on champagne and sparkling wines and 35 cents per gallon on other wines; those taxes are paid by wholesalers.
• Lottery: Mississippi assesses a 3 percent tax on lottery winnings. Prize withholdings are calculated on the amount of winnings minus the amount wagered.

Mississippi does not have estate, inheritance or gift taxes.

• Homestead exemption: The homestead exemption in Mississippi can reduce the annual property tax for eligible homeowners. The exemption has three tiers providing different levels of assistance. The first tier is for people under age 65 and offers a tax credit of up to $300. The second tier includes people who are 65 or older or totally disabled. Those applicants receive an exemption on the first $7,500 of their property taxes. The third tier gets a total exemption from all state property taxes, which is reserved for honorably discharged, totally disabled veterans; honorably discharged veterans age 90 and older; and surviving, unremarried spouses of U.S. Armed Forces members (including reservists and National Guard members) who died on active duty. Full eligibility details can be found on the state Department of Revenue website.
• Retirement income: Retirement income and pensions are not subject to Mississippi income tax if the taxpayer has met the retirement plan requirements. Early distributions are not considered retirement income and may be subject to tax. 

Military retirement pay is exempt from state income tax.

The deadline for filing 2025 income taxes is April 15, 2026. If the taxpayer requests an extension, they have until Oct. 15, 2026, to file their return. However, all payments are still due by the April 15 deadline to avoid penalties and interest.

Valerie Bauman is a journalist and author with two decades of experience working for media outlets, including Newsweek, Bloomberg and The Associated Press. Throughout her career, she’s covered politics and the law, including pharmaceutical litigation, mass torts and election law.