Find Local Mississippi Tax Relief Experts

Mississippi has a flat 5% individual income tax rate, with plans to reduce it further; the state recently eliminated its income tax on the first $10,000 of income. The state sales tax is 7%, the third-highest statewide rate in the nation; local jurisdictions can add up to 1% more, and special rates of 8% apply to car rentals and amusement admissions. Mississippi applies its sales tax to many services other states exempt, including repair services, dry cleaning, and cable television; service businesses that do not collect sales tax face significant back tax exposure. Corporate income tax in Mississippi is 5% on all net income; the state uses a three-factor apportionment formula (sales, property, and payroll) for multi-state businesses. Payroll taxes require Mississippi employers to withhold state income tax and file 89-105 quarterly returns; late deposits carry a 10% penalty and 0.5% monthly interest. Back tax debt in Mississippi carries a 12% annual interest rate plus a 1% monthly failure-to-pay penalty; the Department of Revenue can garnish wages up to 25% of disposable income, levy bank accounts, and file liens. Catfish farming, timber, poultry processing, and gaming industries are Mississippi-specific sources of complex payroll and business tax issues. Mississippi offers installment agreements and occasionally runs voluntary disclosure or amnesty programs; taxpayers with disputes can appeal to the Board of Tax Appeals.