Mississippi State Taxes

Mississippi Income Tax

The 2026 flat tax rate is 4%. New legislation introduced in March 2025 seeks to reduce the rate to 3% by 2030 and continue to cut it until it eventually reaches 0%.

Who Must File?

If any of the following apply, you must file a Mississippi state income tax return:

• You have Mississippi income tax withheld from your wages.
• You are a part-year or non-resident with income tax by Mississippi.
• You are a Mississippi resident temporarily employed outside of the U.S. or working in another state.
• You are a single resident and have gross income over $8,300 plus $1,500 per dependent.
• You are a married resident with a combined gross income of more than $16,600 plus $1,500 per dependent.
• You are a minor (dependent) with gross income in excess of $8,300.

Mississippi Sales Tax

Mississippi has a state sales tax rate of 7% that is levied on retail sales, tangible personal property, beer, and other alcoholic beverages. There are, however, reduced rates for certain types of sales. Mississippi has two local tax levies at the city level and none at the county level. The City of Tupelo levies an additional .25% on all retail sales. The City of Jackson levies an additional 1% on certain retail sales.

Mississippi Property Taxes

Mississippi has one of the lowest property tax rates in the United States. Taxes are due on February 1 for property assessed the preceding year. Residents who are 65 or older, or totally disabled, are exempt from all ad valorem taxes up to $7,500 of assessed value if they are otherwise eligible for a homestead exemption.

The median property tax paid in Mississippi is $1,145. Madison County has the highest property tax at an average of $1,878. The lowest amount is $400 in Amite County.

Mississippi Property Tax

Highest	$1878
Median	$1145
Lowest	$400

Yearly Cost Per Resident

Mississippi Tax Holidays

Mississippi hosts two annual tax holidays.

• Annual Sales Tax Holiday (July) – includes clothing and specific school supplies valued at under $100 per item. Local sales tax may still apply.
• Second Amendment Sales Tax Holiday (August) – includes purchases of ammunition, firearms, and certain hunting supplies. No state or local sales tax will be levied during this time.

Mississippi Tax Relief

Past-due Mississippi income taxes can become increasingly difficult to address as penalties and interest continue to increase your balance. If the debt remains unpaid, the Mississippi Department of Revenue (DOR) may pursue collection efforts to recover what you owe. Whether you’re facing unfiled returns, financial difficulties, or unpaid business tax obligations, taking steps to resolve the issue early may help keep your situation from becoming more complicated.

If paying your Mississippi tax balance in full isn’t feasible, you may have options for managing the debt. Depending on your circumstances and eligibility, you may be able to arrange an installment agreement, pursue an Offer in Compromise, or explore other available tax resolution options. Addressing your balance before collections escalate may also help you avoid or resolve enforcement actions such as tax liens, wage garnishments, and bank levies.

Understanding how Mississippi approaches delinquent taxes and learning about the relief options available can help you determine the best way to move forward. Taking proactive steps toward a resolution can help you address your outstanding obligations and work toward getting your Mississippi tax account back on track.

Common Mississippi State Tax Problems

How Mississippi Collects Tax Debt

If you owe Mississippi income taxes, the state is legally required to send multiple notices informing you of your unpaid tax debt. This typically begins with the Assessment Notice, also known as the Billing Notice.

If you do not respond to initial requests for payment, the Department of Revenue will issue a Notice of Intent to Levy (final demand for payment). You typically have 30 days to respond or pay before your account is sent to Collections.

Mississippi collection actions may include:

• Wage garnishment
• Tax liens
• Bank levies
• Asset seizure
• Tax refund interception
• Referral to private collection agency

Assessment Notice sent to taxpayer

Notice of Intent to Levy

Referral to Collections

Mississippi State Tax Relief Options

Mississippi offers a few relief options, including:

• Installment Agreements– If you can’t pay your tax bill on time, you may be eligible for an installment agreement for between 12 and 60 months.
• Offer in Compromise – If your tax debt is older than 4 years and over $3,000, you may qualify to settle your debt for less through an Offer in Compromise.

If you’re experiencing financial hardship and can’t pay your Mississippi income tax bill, contact the Department of Revenue as soon as possible to avoid collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

Mississippi Tax Relief FAQs

How do I set up an Mississippi payment plan?

Mississippi offers two types of installment agreements:

1. For taxpayers owing between $75 and $3,000, you can set up a 12-month payment plan.
2. Taxpayers owing more than $3,000 and who already have a payment plan with the IRS may also qualify for an installment agreement with the state that allows them to pay over 60 months.

To apply, you must complete Form 716612581, Mississippi Installment Agreement, and mail the form to:

Department of Revenue
PO Box 23050
Jackson, MS 39225-3050

What happens if I ignore Mississippi tax notices?

If you don’t pay your Mississippi income taxes and ignore repeated notices, the state may garnish your wages, file a tax lien, seize your property (levy), or seize future tax refunds.

Can Mississippi garnish my wages for unpaid taxes?

Yes, Mississippi can garnish up to 25% of your disposable earnings. If you earn less than $217.50 a week, the state cannot garnish your wages.

Can Mississippi levy my bank account?

Yes. The MS Department of Revenue can seize funds from your bank accounts if you still have an outstanding tax balance.

How long does Mississippi have to collect back taxes?

Mississippi typically has 7 years from the date of tax assessment to collect back taxes. It’s important to note that the state has up to 3 years to assess your tax debt (6 years if the IRS audits you and reduces your income for that period). The 7-year collection period doesn’t begin until the 60-day billing notice expires.

Mississippi Tax Resources

If you need assistance preparing your Mississippi state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the Mississippi Department of Revenue website for additional resources.

• Payment Options
• Individual Income Tax Forms
• File a Return
• Refund Hotline: 601-923-7801
• General Tax Help: 601-923-7700