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Taxes

Tax Profile – State of Mississippi
Tax Basis Rate Agency
Corporate Income Tax Unless a company is taxable in another state, this tax is based on company net taxable income

First $5,000 of taxable income is taxed at 3% in 2016 and 2017. Starting in 2018 corporations and individuals will progressibly exempt $1,000 of taxable income per year untill all $5,000 are exempted by 2022. After 2022, There will be no income tax on the first $5,000 of income.

Next $5,000 - $10,000 of taxable income will be taxed at 4%

Income in excess of $10,000 will be taxed at 5%

Mississippi State Tax Commission
Corporate Franchise Tax Assessed on the company’s capital value. Calculation is based on: capital stock issued and outstanding; and paid-in-capital, surplus, and trained earnings, including deferred taxes, deferred gains, deferred income, contingent liabilities, and other true reserves.

$2.50 per $1,000 of Mississippi capital.

Important: The corporate franchise tax will be phased out by decreasing the current tax of $2.50 for each $1,000 of capital value by 25 cents each year until 2027. Also begining in 2018, the first $100,000 of capital value will be exempt from the tax.

Mississippi State Tax Commission

Sales and Use Tax

All personal property sold within the State are considered taxable unless specifically exempted or assigned reduced rate by State law. Some services are also subject to sale tax.

Retail sales & use is 7% but the law does allow for a reduced rate for manufacturing machinery, equipment and industrial purposes of 1.5%

Sales tax on automobiles is 5% with trucks & tractors taxed at 3%

Contractors tax assessed on the construction of commercial real property is calculated as 3.5% of the contractors gross receipts.

Mississippi State Tax Commission

Source: Mississippi State Tax Commission (updated September 2016)