If the winter holidays are the most wonderful time of the year, they are followed a few months later by the least wonderful time of the year: tax season. Even if we’re getting a healthy tax return, filing our income taxes can be a pain. And whether you’re downloading a computer tax program or bringing all of your business receipts to an accountant to do our taxes, you might be wondering about the laws that create so much work and trouble every Spring. Here is a brief overview of personal income tax laws in Mississippi.
Income Tax in Mississippi
State personal income tax laws charge a percentage of a person’s income and use the proceeds to pay for public services like schools, police budgets, and road construction and maintenance. The Magnolia State uses variable tax rate depending on your annual income. Mississippi's personal income tax statutes are listed in the table below.
| Code Section | Mississippi Code 27-7-5, et seq. |
| Who Is Required to File? | Resident individuals, trusts, and estates on entire net income from property owned or sold and business trade or occupation carried on in Mississippi by nonresident individuals, partnerships, trusts and estates; Partnerships and S corporations are not taxable |
| Rate | First $5,000, 3%; Next $5,000, 4%; Over $10,000, 5% |
| Federal Income Tax Deductible | No |
| Federal Income Used as Basis | No |
Along with Mississippi’s personal income taxes, citizens may also be subject to state consumer tax laws as well as federal tax laws. Under basic tax law, both the federal government and the states are allowed to tax earned and unearned personal income. Earned income is generally your salary, including wages, tips, commissions, and bonuses. Unearned income is income from other sources like interest, dividends, and profits from asset sales, royalties, and gambling winnings.
Federal incomes taxes are handled by the Internal Revenue Service (IRS) and you can find most IRS forms and publications online. Some states will base their income tax codes on the federal code, but you should be aware that there may be important differences depending on your state before you file or pay your taxes. If you would like help filing your state and federal income taxes, you can find some state tax forms online along with information on taxpayer assistance programs.
Mississippi Personal Income Tax Laws: Related Resources
State tax codes can be extremely to understand. You can consult with a Mississippi tax law attorney if you would like legal assistance regarding a tax matter. You can also find more resources and information on this topic by visiting FindLaw’s section on Tax Law.
