Tax Laws in Mississippi.

Income tax phasing to a flat 4% (effective 2026). Legislation in 2022 (HB 531) eliminated the lowest brackets and scheduled further reductions; 2025 legislation set further targets toward elimination. Mississippi conforms partially to the federal Internal Revenue Code.

General sales tax is 7% on tangible personal property. Groceries taxed at the full 7% (Mississippi is one of only a few states that fully taxes groceries). Some counties impose local tourism or lodging taxes.

Corporate income tax is being phased to a flat 4% under the same schedule as the individual tax.

Property tax is administered by each county and municipality. Residential property is assessed at 10% of true value; commercial at 15%; industrial at 15%; and motor vehicles at 30%. Millage varies by taxing district.