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 |
