How Is Mississippi Franchise Tax Calculated?

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Business Taxes in Mississippi

  • Mississippi corporations are subject to income tax at rates ranging from 3% to 5%.
  • S corporations must pay the corporate franchise tax but are not required to pay income tax.

Franchise Tax in Mississippi

  • The franchise tax in Mississippi is $2.25 per $1,000 of the value of the Corporation’s stock or the assessed value of property located in the state, whichever is more. The minimum corporate franchise tax in Mississippi is $25.
  • The rate of franchise tax is $2.50 per $1,000 of the capital used, invested, or employed in Mississippi.

Tax Rates and Filing for LLCs

  • The employer taxes for Mississippi LLCs will fluctuate between 0.0% and 5.4%. Income tax rates for LLCs in Mississippi vary.
  • Mississippi imposes a state income tax rate of 5% on the earnings of LLCs, paid by the members individually. Additionally, when engaged in sales transactions, LLCs must collect and remit a 7.00% sales tax.

Filing Business Taxes in Mississippi

  • Gather all relevant documents
  • Choose a tax preparation method
  • E-file your returns
  • Pay your tax liability

Initial Costs of Forming an LLC in Mississippi

  • Starting an LLC in Mississippi involves certain costs. Selecting the right support for a smooth experience is crucial.

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