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Local & State Taxes

All businesses in Mississippi are subject to state taxes.

TAX TAX RATE EXEMPTION(S) AVAILABLE
State Income Tax

(No County Income Tax)

(No Municipal Income Tax)

1st $5,000 – 3%

2nd $5,000 – 4%

Over $10,000 – 5%

  • Broadband Technology Tax Credits
  • Child/Dependent Care Income Tax Credit
  • Equity Investment Tax Credits (New Markets)
  • Existing Manufacturer’s Investment Tax Credit
  • Jobs Tax Credit
  • National or Regional Headquarters Jobs Credit
  • Rural Economic Development Tax Credits on Industrial Revenue Bonds
  • Skills Training Tax Credit
  • Income Tax Exemption for Business Growth & Prosperity Areas (GAP)
Personal Income Tax 1st $5,000 – 3%

2nd $5,000 – 4%

Over $10,000 – 5%

Individuals are allowed personal exemptions
Corporate Franchise Tax $2.50 per $1,000 capital invested in state
  • Broadband Technology Tax Credits
  • Franchise Tax Exemption for Businesses in Growth & Prosperity Areas (GAP)
Corporate Charter Fee $50 No
Excise Tax Gasoline & Diesel

(Highway use): $.18/gal

Non Hwy use: 5 ¾ cent/gal

No
Oil & Gas Severance Tax Point of Production:

6% in ground: Exempt

No
County Property Tax

Mfg. includes: Real, Personal & Inventory

(No State Property Tax)

Most Property – 15%

Residential – 10%

Utilities – 30%

Motor Vehicles – 30%

Fair Mkt. value

Counties & Municipalities:

  • May grant exemption on property taxes except school taxes for a period up to 10 years
  • May levy a fee in lieu of taxes on projects more than $100 million
  • Free Port Warehouse exempts inventory shipped outside the state
  • May grant exemption on property taxes for Business in growth & Prosperity Areas (GAP)
  • May grant exemption for in state inventory investment remaining in MS
  • May grant exemption on property taxes for Industrial Revenue Bond Financing
Unemployment Compensation

(Employer makes contribution on each employee’s wages)

Initial $7,000 – 2.7%

Min rate – .9%

Max rate – 5.4%

Vary year to year

No
Worker’s Compensation

(Employers with 5 or more employees must purchase or self-insure)

Up to 2/3 of claimant’s average weekly wages up to 450 weeks. Amts indexed on annual basis.

Does not include medical payments.

No
TAX TAX RATE EXEMPTION(S) AVAILABLE
State Sales & Use Tax

(General Retail Sales)

7%

Sales to a Manufacturer:

  • Raw materials (except sand & gravel, 5 cents/ton)  0.0%
  • Catalysts, chemicals, or gases used directly in processing (except natural gas 1.5%) 0.0%
  • Packaging and containers for sale with finished goods 0.0%
  • Industrial electricity, natural gas, & fuels 1.5%
  • Industrial water 7.0%
  • Telephone & telegraph 7.0%
  • All other equipment, furniture, fixtures, materials, supplies, and rentals not used in mfg. 7.0%

Pollution Control Equipment

  • Exempt from this tax Sales by a mfg
  • To a final consumer 7.0%
  • To another mfg as a raw material for further processing 0.0%
  • To a wholesaler or retailer for resale 0.0%
  • To exempt customers  (gov’t agencies, educational institutions, etc.) 0.0%
Bond Finance Program*

  • Full exemption to qualified businesses which finance building materials, machinery and equipment with bond proceeds

National or Regional Headquarters*

  • Full exemption to qualified businesses transferring national or regional headquarters to MS and creating a minimum of thirty-five jobs

Tier 3 counties*

  • Full exemption to mfg & processors on purchase of building materials used in construction of a building and on qualified machinery & equipment

Tier 2 & 1 counties*

  • On-half exemption to mfg & processors on purchase of building materials used in construction of a building and on qualified machinery & equipment

*Exemption does not apply to contractor’s 3.5% tax