Mississippi Tax Guide
4.7%top marginal rate
Mississippi moved to a flat income tax of 4.7% and is actively working to eliminate it entirely. The 7% state sales tax is one of the highest in the nation. Property taxes are well below average, making Mississippi affordable for homeowners.
Mississippi Tax at a Glance
Income Tax
4.7%
Flat rate
Sales Tax
7%
State-level rate
Property Tax
0.81%
26% below the national average
Estate Tax
No
No state estate tax
How Mississippi Compares to the National Average
Notable Tax Facts
- Working toward eliminating the income tax entirely — phasing down from previous rates
- State sales tax of 7% is one of the highest in the nation
- Very low property taxes at about 0.81% effective rate
- No estate or inheritance tax
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Mississippi Tax FAQ
What is Mississippi's income tax rate?
Mississippi has a flat income tax rate of 4.7%. The state is actively working to reduce and potentially eliminate the income tax over time.
Does Mississippi have high sales tax?
Yes. Mississippi's 7% state sales tax is one of the highest in the nation. Groceries are also taxed at the full rate.
Is Mississippi a low-tax state?
Mississippi has low income and property taxes, but the 7% sales tax (applied to groceries too) makes it mixed. Overall, the cost of living and tax burden are low.
Does Mississippi tax retirement income?
Mississippi does not tax Social Security benefits. Qualified retirement income from IRAs, 401(k)s, and pensions is also exempt from state income tax.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.