Mississippi State Income Tax
Mississippi's income tax is regressive. It falls more on black households, who already pay the highest sales tax rates in the country.
There are a few things to keep in mind when filing Mississippi state income taxes. For one, the state’s income tax is progressive, meaning it goes up based on how much you earn. In addition, the state has a statewide sales tax as well as local sales taxes in some cities and counties. As the 2023 tax filing season begins, Mississippians can benefit from recent income tax reforms. Mississippi State Income Tax rate was cut from 5% to 4.7% for 2024, with further reductions planned for 2025 and beyond. Moreover, the state’s withholding tax has been reduced from 5% to 4.3% of taxable wages.
The new law also exempts the first $18,300 of individual income for single filers and $36,600 for married couples. The state imposes one of the lowest taxes on regular gasoline, at 18 cents per gallon, and a low cigarette tax, at 68 cents per pack. The state allows taxpayers to claim standard deductions and itemized deductions, including charitable contributions. It also offers a personal exemption of $1,500 for each dependent. It is important to note that the state does not impose an estate or inheritance tax.
If you’re considering retiring in Mississippi, the state’s comparatively low property and income taxes could be beneficial. But before you retire, consider working with a financial advisor to develop a strategy that meets your goals.
How to File Mississippi State Income Tax?
Mississippi’s e-filing program supports the submission of federal and state returns. However, the state only accepts electronic filings that have been accepted by the IRS. This includes both e-filed federal returns and faxed state returns. The department also accepts credit card payments for balance-due returns, extensions, and amendments.
Mississippi State Income Tax Due Dates
The deadline for filing a Mississippi personal income tax is October 15. Mississippi grants an automatic 6-month extension for filing without the need to submit a separate extension application. The extension applies to filing only; tax payment is still due by April 15, 2024. Mississippi does not extend the time to pay withholding tax or other business taxes. To make a payment, complete a Form 80-106 and submit it with your return.
