State Tax in Mississippi: Guide and Key Filing Details

• admin
• February 24, 2025
• 6 min read

Comprehensive Mississippi State Tax Guide 2025: Key Updates and Filing Information

Navigating the complexities of state taxes can be a daunting task, especially with the annual changes that may impact your financial planning. As we step into 2025, staying informed about Mississippi’s tax regulations is crucial to ensure compliance and optimize your tax situation. This comprehensive guide provides the latest updates, filing deadlines, and essential information, including details on tax forms and how to e-file, to assist you in preparing your Mississippi state tax return.

Key Takeaways

• Updated Tax Rates: For the 2024 tax year, Mississippi has adjusted its income tax rates, including a % rate on the first $10,000 of taxable income and a 4.7% rate on income exceeding $10,000.
• Filing Deadline: The due date for filing 2024 Mississippi Individual Income Tax Returns is April 15, 2025.
• Standard Deductions and Exemptions: Mississippi offers various standard deductions and exemptions based on filing status, which can significantly affect your taxable income.

Understanding Mississippi’s Income Tax Rates

Mississippi employs a graduated income tax system, meaning the tax rate increases with the amount of taxable income. For the 2024 tax year, the rates are structured as follows:

• % Tax Rate: Applies to the first $10,000 of taxable income.
• 4.7% Tax Rate: Applies to taxable income exceeding $10,000.

For instance, if your taxable income is $23,000, the first $10,000 is taxed at %, and the remaining $13,000 is taxed at 4.7%, resulting in a tax liability of $611.

Mississippi is actively working to reduce its income tax rates. The 4% rate was eliminated for the 2024 tax year, and further reductions are planned:

• Tax Year 2025: Income over $10,000 will be taxed at 4.4%.
• Tax Year 2026: Income over $10,000 will be taxed at 4%.

These changes, alongside adjustments in the gas tax, reflect the state’s ongoing efforts to alleviate the tax burden on residents, providing more disposable income for families and individuals.

Filing Deadlines and Extensions

The deadline for filing your 2024 Mississippi Individual Income Tax Return is April 15, 2025. If you require additional time, Mississippi honors federal extensions, granting an automatic extension to October 15, 2025. However, it’s crucial to understand that this extension applies only to filing your return, not to the payment of any taxes owed. To avoid penalties and interest, ensure that any tax due is paid by April 15, 2025.

For more information on state tax extensions, visit FileLater’s state extensions page.

Standard Deductions and Exemptions

Mississippi allows taxpayers to choose between itemizing deductions or claiming the standard deduction, depending on which option provides a greater tax benefit. The state generally follows federal guidelines for itemized deductions, with the exception that Mississippi income taxes are not deductible on your state return.

The standard deduction amounts for the 2024 tax year are as follows:

• Married Filing Jointly or Combined: $4,600
• Married Spouse Deceased: $4,600
• Married Filing Separately: $2,300
• Head of Family: $3,400
• Single: $2,300

Additionally, personal and dependent exemptions can reduce your taxable income. For each dependent claimed, you must provide their name, Social Security number, and relationship to you. A dependent is defined as a relative or other person who qualifies as a dependent for federal income tax purposes. It’s important to note that you cannot claim a dependency exemption for yourself or your spouse.

Recent Legislative Changes Impacting Taxes

Mississippi has enacted several legislative changes that may affect taxpayers:

• Property Tax Exemption for Senior Veterans: Beginning January 1, 2025, honorably discharged American veterans who have reached the age of 90 are exempt from all ad valorem taxes on the assessed value of their homestead property.
• Sales Tax on Groceries: As of the end of 2024, Mississippi imposes a 7% sales tax on groceries, the highest rate in the nation. There are ongoing discussions about reducing this rate to alleviate the financial burden on residents.

Filing Your Mississippi Tax Return

Mississippi encourages taxpayers to file electronically, as e-filing and choosing direct deposit can expedite your refund by up to eight weeks. The state will begin accepting electronically filed returns on January 27, 2025. If you prefer to file a paper return, common forms are available at public libraries.

For those considering a tax extension, FileLater offers detailed guidance on personal tax extensions.

Frequently Asked Questions

Q: Are Social Security benefits taxable in Mississippi?

A: No, Mississippi does not tax Social Security benefits. Additionally, other retirement income, such as 401(k), IRA, and pension income, is also exempt from state taxes.

Q: Does Mississippi have a sales tax?

A: Yes, Mississippi imposes a statewide sales tax of 7%. This includes most goods and services, with some exceptions, such as prescription drugs. Additionally, local governments may impose additional taxes on certain purchases.

Q: Can I deduct federal income taxes on my Mississippi return?

A: No, Mississippi does not allow a deduction for federal income taxes paid when filing your state tax return.

Q: How can I check the status of my Mississippi tax refund?

A: You can track your state tax refund through the Mississippi Department of Revenue’s online refund status tool. Typically, e-filed returns are processed faster than paper returns.

Embracing Change: Navigating Mississippi’s Tax Landscape

Mississippi’s tax landscape continues to evolve, with recent income tax reductions and potential future changes to sales tax rates. Whether you’re a resident, a retiree, or a business owner, staying informed about state tax updates can help you maximize savings and avoid penalties. Make sure to file your tax return on time, take advantage of available deductions, and consult a tax professional if you need assistance.

For the latest information, visit the Mississippi Department of Revenue.