The state of Mississippi has three rates at which it taxes income; for single tax payers the first $5,000 of income is taxable at 3%, from $5,001 to $10,000 is 4% and above $10,001 is 5%. Married couples who file a joint return have the option of determining their tax liability separately and then adding the results.

The state of Mississippi does not tax Social Security Benefits.

Exempt Retirement Income

Your retirement income may be exempt from state taxes. Plans such as; 401(k)s, 403(b)s, IRAs, Keoghs, and public and private pension plans that are qualified are exempt. If you receive an early distribution from any of these plans it is not considered retirement income and is subject to taxation. If you earn income on interest from Federal Security’s or obligations of Mississippi or any of its political subdivisions you are exempt from state taxes on that income.

Do I have to file?

If any of the following are true, you should file a Mississippi state tax return.

• Mississippi held Income Taxes from you wages
• You have been taxed by Mississippi and are a non-resident or part-year resident
• You were employed in a foreign county on a temporary or transition basis and are a resident of Mississippi you are subject to State tax.
• You are a resident of Mississippi working out of state; you must file a Resident return and report your total gross income regardless of source.
• You are single and have a gross income above $8,300, plus $1,500 per dependent.
• You are married and you have a combined income more than $16,000 plus $1,500 per dependent with your spouse.
• You have a gross income of more than $8,300 and are a minor.