Mississippi State Tax Rate 2025 Guide – Mississippi continues its aggressive tax reform in 2025, making it one of the most taxpayer-friendly states in the South. With a simplified flat individual income tax rate, competitive sales tax structure, and low property taxes, the Magnolia State offers residents and businesses clear advantages. This comprehensive 2025 guide covers everything you need to know about Mississippi state tax rates, including income, sales, property, corporate, and other taxes. All information is based on the latest data from the Mississippi Department of Revenue (DOR) and trusted sources like the Tax Foundation.
Whether you’re a resident filing your 2025 taxes, a business owner, or planning a move to Mississippi, this guide breaks down rates, exemptions, recent changes, and filing tips to help you minimize your tax burden legally.
Mississippi Income Tax Rates 2025
Mississippi uses a simple two-tier flat income tax structure for tax year 2025 (returns filed in 2026). There is no complex bracket schedule.
- 0% on the first $10,000 of taxable income
- 4.4% on all taxable income over $10,000
This rate reflects the continued phase-down from prior legislation (H.B. 531 in 2022). The 4% bracket was fully eliminated starting in tax year 2024.
Example calculation (single filer with $50,000 taxable income):
$10,000 × 0% = $0
$40,000 × 4.4% = $1,760
Total Mississippi state income tax = $1,760
Married couples filing jointly can calculate each spouse’s tax separately on their own income and combine the results.
Exemptions and Standard Deductions for 2025
Mississippi offers generous personal exemptions and standard deductions:
| Filing Status | Personal Exemption | Standard Deduction |
|---|---|---|
| Married Filing Joint / Combined | $12,000 | $4,600 |
| Married – Spouse Deceased | $12,000 | $4,600 |
| Married Filing Separate | $6,000 | $2,300 |
| Head of Family | $8,000 | $3,400 |
| Single | $6,000 | $2,300 |
Additional exemptions:
- $1,500 per qualifying dependent
- $1,500 each for taxpayer and/or spouse age 65+ or blind
You may itemize deductions (following federal rules, except Mississippi income taxes are not deductible) or take the standard deduction—whichever is larger.
Who Must File a Mississippi Return?
File if you are a Mississippi resident or part-year resident with Mississippi-source income, or if Mississippi tax was withheld from your pay. Gross income thresholds for residents:
- Single: over $8,300 + $1,500 per dependent
- Married (combined): over $16,600 + $1,500 per dependent
Non-residents file only on Mississippi-source income using Form 80-205.
How Mississippi’s Income Tax Compares Nationally?
Mississippi’s 4.4% flat rate (above the $10,000 exemption) ranks among the lowest in the country. Nine other states have no income tax at all, but Mississippi’s rate is significantly below the national average top marginal rate of about 5–6%. Ongoing reforms under H.B. 1 (signed March 2025) will further reduce the rate to 3% by 2030, with possible additional cuts afterward if revenue goals are met.
Mississippi Sales Tax Rates 2025
Mississippi’s statewide sales tax rate is 7% on most tangible personal property and certain services.
Special reduced rates include:
- Groceries and food eligible for SNAP benefits: 5%
- Automobiles and light trucks (≤10,000 lbs.): 5%
- Farm tractors, logging equipment, and certain manufacturing machinery: 1.5%
- Construction contracting (contracts >$10,000, non-residential): 3.5%
Local sales taxes are minimal—most areas stay at exactly 7%. Combined state + local rates average 7.06%, with a few cities adding up to 1% (e.g., Jackson reaches 8%).
Key exemptions include residential electricity/fuels, water, and certain wholesale sales.
2025 Update: The grocery rate reduction to 5% (effective earlier but confirmed for 2025) helps families with everyday essentials.
Mississippi Property Tax Rates 2025
Mississippi has one of the lowest effective property tax rates in the U.S. — 0.58% of owner-occupied home value (36th lowest nationally).
Property is assessed at different ratios:
- Class I (owner-occupied homes): 10% of true value
- Most other real property: 15%
Actual taxes depend on local millage rates set by counties and cities each year. Median annual property tax paid is around $931, though it varies significantly by county (e.g., higher in Madison or DeSoto counties).
No statewide property tax increase was enacted for 2025, keeping housing affordable compared to national averages.
Mississippi Corporate Tax Rates 2025
Businesses pay a graduated corporate income tax on Mississippi net taxable income:
- 3% on the first $5,000
- 4% on the next $5,000 ($5,001–$10,000)
- 5% on income over $10,000
Mississippi also imposes a franchise tax (privilege tax for doing business in the state) of $0.75 per $1,000 of capital employed (or assessed property value) in 2025. This rate continues phasing down and will reach zero after 2027.
Other Key Mississippi Taxes in 2025
- Gasoline Excise Tax: Increased to 21 cents per gallon (effective July 1, 2025) as part of H.B. 1 infrastructure funding. Further phased increases are scheduled through 2027.
- Estate and Inheritance Taxes: Mississippi imposes neither an estate tax nor an inheritance tax. Only the federal estate tax applies (exemption ~$13.99 million in 2025, rising in 2026).
- Other Excise Taxes: Reduced rates apply to certain fuels, tobacco, and alcohol (administered by DOR).
Recent Tax Changes and What’s Ahead for Mississippi
2025 marks another milestone in Mississippi’s historic tax relief:
- Continued income tax reduction to 4.4%
- Grocery sales tax relief
- Fuel tax increase tied to road improvements
- New tax credits for blighted property redevelopment and port/airport usage
Under H.B. 1 (2025), the individual income tax rate will drop further: 4.0% in 2026, 3.75% in 2027, down to 3% by 2030, with possible elimination afterward if reserve funds are fully funded.
Filing Deadlines, Tips, and Resources for 2025 Taxes
- Deadline: April 15, 2026 (or the next business day) for calendar-year 2025 returns.
- File electronically via the DOR’s Taxpayer Access Point (TAP) for faster refunds.
- Attach a copy of your federal return when mailing paper forms (Form 80-105 for residents).
- Estimated payments required if you expect to owe $200+.
Official Resources:
- Mississippi Department of Revenue: www.dor.ms.gov
- 2025 Individual Income Tax Instructions (Form 80-100)
- Free filing help via TAP or local offices
Pro Tip: Use tax software that supports Mississippi returns or consult a local CPA, especially if you have out-of-state income or business activity.
Mississippi’s 2025 tax environment rewards residents and businesses with low rates, simplicity, and a clear path to even lower taxes in the future. Stay informed via the DOR website, as minor adjustments can occur. For personalized advice, always consult a tax professional or the Mississippi Department of Revenue directly.
This guide is current as of April 2026 and reflects official 2025 tax year rules. Tax laws can change—verify with primary sources before filing.