Mississippi

Tax Rate Range: Low - 3%; High - 5%
Income Brackets: Lowest - $5,000; Highest - $10,000
Number of Brackets: 3
Personal Exemptions: Single - $6,000; Married - $12,000; Dependents - $1,500
Additional Exemption: 65 or older - $1,500
Standard Deduction: Single - $2,300; Married filing jointly - $4,600
Medical/Dental Deduction: Partial
Federal Income Tax Deduction: None
Retirement Income Taxes: Qualified retirement income is exempt from state income tax. Social Security is not taxed, regardless of total income. Retirement income from IRAs, 401s/403s, Keoghs and qualified public and private pension plans is not taxable. Interest income from federal securities and obligations of Mississippi and its political subdivisions are all exempt.

State Tax Software

Retired Military Pay: Retired pay is exempt after January 1, 1994. The exemption is also available to the spouse or other beneficiary upon the death of the primary retiree. Widows' pensions received from the VA are not taxable.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Sales Taxes

State Sales Tax: 7% (prescription drugs, residential utilities, motor fuel, newspapers, healthcare services, and payments made by Medicare and Medicaid are exempt); County and city taxes may add an additional 3% to the state rate.
Gasoline Tax: 18.8 cents/gallon
Diesel Fuel Tax: 18.8 cents/gallon
Cigarette Tax: 18 cents/pack of 20

Property and automobiles are both subject to ad valorem taxes - meaning that the tax is assessed in relationship to the value of the property. Single family residential property is taxed at 10% of its assessed value. All other personal property is assessed at 15% of its value. Motor vehicles are taxed at 30% of their value. The state offers a homestead exemption to all eligible taxpayers. The exemption is from all ad valorem taxes assessed to a property and is limited to the first $7,500 of assessed value and has an upper limit of $300 of actual exempted tax dollars. Persons 65 and older qualify for an additional exemption. It only applies where a husband and wife have joint ownership of the property.
For additional information, call 601-923-7631 or click here.

There is no inheritance tax. An estate tax is imposed on the value of a decedent's estate when the total gross estate exceeds the federal exemption of $1,000,000. The exemption amount will follow the federal exclusion under 26 USC 2010.
For further information, visit the Mississippi State Tax Commission site or call 601-923-7000.