Mississippi state taxes 2021: Income and sales tax rates
If you live in or work for a company in Mississippi, you might have to file a state income tax return. Mississippi has a graduated income tax rate, meaning your income determines your tax rate.
Mississippi personal income tax rates: Table
| Mississippi personal income tax rates | ||
|---|---|---|
| Tax rate | Single, married filing separate | Married filing jointly |
| 0% | $0-$3,000 | $0-$3,000 |
| 3% | $3,001-$5,000 | $3,001-$5,000 |
| 4% | $5,001-$10,000 | $5,001-$10,000 |
| 5% | More than $10,000 | More than $10,000 |
| Source: Mississippi Department of Revenue | ||
Residents can take advantage of the deductions and exemptions the state offers. Single filers can claim a deduction of $2,300, while married taxpayers can receive $4,600. For exemptions, single taxpayers receive $6,000, married households claim $12,000, and the state grants $1,500 for each qualifying dependent.
Who has to file Mississippi state taxes?
If you lived in Mississippi or worked for a company based there, you must file a tax return if your income exceeds the deductions and exemptions. For single taxpayers, your gross income must be more than $8,300, plus $1,500 for each dependent. Married taxpayers must make more than $16,600 plus $1,500 for each qualifying dependent.
You should also file if you had Mississippi tax withheld from your pay but do not fall under the guidelines for filing. Doing so enables you to receive a refund.
Companies residing in Mississippi must also file a state income tax return. The Mississippi Department of Revenue allows you to register for a tax account online. While there, you can file your tax return and pay any balances owed.
Mississippi sales tax rate: Table
Mississippi residents have to pay a sales tax on goods and services.
| Mississippi sales tax rates | ||||
|---|---|---|---|---|
| Sales tax rate | National rank | |||
| 7% | 2 | |||
| Source: Tax Foundation | ||||
Mississippi’s sales tax rate consists of a state tax (7 percent) and local tax (0.07 percent).
Other things to know about Mississippi state taxes
The state also collects taxes on cigarettes and gasoline. The gas tax is 18.79 cents per gallon. Meanwhile, the cigarette tax is $0.68 (dollars per 20-pack).
Also, it is easy to determine filing eligibility through the Mississippi Department of Revenue website. There you can set up an online account through the Taxpayer Access Point (TAP). It allows individuals and businesses to file taxes, pay any balances owed or determine the method of getting a refund.
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