Most retirement income is not taxed in the state of Mississippi. This includes Social Security benefits, pensions, annuity payments, and normal distributions from retirement accounts. That means you should be able to deduct almost all of your retirement money from your Mississippi state income tax return.
Mississippi Income Tax
Mississippi has a very simple income tax with a low rate. The rate is 3% for the first $5,000 in taxable income, 4% for $5,000-$10,000 of taxable income, and 5% on any amount of taxable income over $10,000. All filers pay one of these income tax rates in Mississippi.
There are income deductions and exemptions available for all residents of Mississippi. A married couple filing jointly or a widow or widower has a $12,000 income tax exemption, a single person or a married person filing separately has a $6,000 tax exemption, the head of a family has an $8,000 tax exemption, and anybody over 65 can claim an additional $6,500 tax exemption. That means you do not have to pay taxes on the first $13,500 in taxable income in Mississippi if you are over 65.
You are also entitled to a state income tax deduction if you live in Mississippi. A married couple filing jointly can deduct an additional $4,600 from their state income tax. A single person or a married person filing separately can deduct an additional $2,300. If you were widowed within the last year you can claim the exemptions and deductions for married filing jointly.
Even some gambling winnings are tax deductible in Mississippi. If you win money gambling at a casino in Mississippi you can deduct it from your state income tax.
If you live in Mississippi you can obtain all your tax forms online. All tax forms can be found at the state Department of Revenue's website.
Mississippi Sales Tax
The state sales tax in Mississippi is 7% and it applies to most goods and services sold in the state. Prescription drugs and utilities, including electricity, water, and gas for home use, are not covered by state sales tax. Food sold in grocery stores is subject to state sales tax in Mississippi.
County and local governments in Mississippi can levy an additional sales tax of 1% to 2%. That means the sales tax can be as high as 9% in some areas. There are also higher taxes on specific items such as hotel rooms.
Mississippi Property Taxes
The property tax rate on homes in Mississippi is a flat 10% of the assessed value. Under state law this rate applies everywhere in the state. All other real estate is taxed at a rate of 15% of the assessed value. The true or assessed value of the property is determined by the county assessor.
If you own a home in Mississippi you can apply for a homestead tax exemption on your house. To do this you will have to contact your County Assessor's Office. Once you get the exemption the Assessor should include it in your yearly tax bill.
If you are over 65 the first $75,000 of the value of your home is exempt from property taxes in Mississippi. To get this exemption you will have to contact your County Assessor's Office.
Vehicles are also subject to property tax in Mississippi, the standard rate is 30% of the true value of the vehicle.
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|Income Tax:||3.0% - 5.0%|