Sales Tax and Business Operations in Mississippi
- In-state businesses in Mississippi must register for a sales tax permit to have retail sales. Out-of-state entities must register, collect, and remit sales taxes to operate in Mississippi. The regular retail sales tax rate in Mississippi is 7%. All sales of tangible personal property are subject to this rate unless exempted or given a reduced rate. The tax is based on gross proceeds or gross income.
Tap Water Safety and Sources in Mississippi
- Most U.S. tap water is from surface or groundwater sources. The Mississippi River has fresh water flowing near the surface. But dense, salty water from the Gulf of Mexico forms a salt wedge along the river bottom near the mouth, mixing with fresh water. Officials said tap water flowing in Mississippi’s capital Jackson is safe to drink after testing in federal court. But drought threatens Louisiana’s drinking water supply as the Mississippi River drops. Mississippi tap water is supplied from natural sources and treated by facilities in the state. It is safe to drink from taps or in restaurants.
Mississippi Taxes and Income Rates
- The Transportation Alternatives Program (TAP) in Mississippi has $16 million available this year to fund sidewalks, bikeways, trails, Safe Routes to School, and similar projects. About 95% of TAP dollars go to walking and biking projects like sidewalks, crosswalks, bike lanes, recreational trails, Safe Routes to School construction and programs.
What income is not taxable in Mississippi?
- Retirement income is not taxed, including 401ks and social security.
Individual Income Tax Rates in Mississippi
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The individual income tax rate in Mississippi ranges from 3% to 5%. The 3% rate applies to taxable income from $3,001 to $5,000. The 5% rate applies to taxable income over $10,000. Military retirement income is exempt from Mississippi income tax. Louisiana has an individual income tax.
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In 2022, Governor Reeves signed a law reducing Mississippi’s top tax rate from 5% to 4% by 2026. The rates will drop incrementally each year starting in 2023. The legislature will determine future rate cuts after 2026.
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Mississippi uses graduated tax rates based on income ranges. The rates are: 0% on the first $2,000; 3% from $2,001 to $5,000; 4% from $5,001 to $10,000; and 5% on income over $10,000. Sales taxes are charged on most purchases. Property taxes are below average. Most retirement income is exempt from state tax.