Mississippi Small Business Tax Guide — 2026
Income Tax Rate
4.7% flat rate (as of 2026)
Sales Tax Rate
7%
Filing Deadline
April 15 (matches federal deadline)
Mississippi Income Tax
Mississippi imposes a state income tax with rates of 4.7% flat rate (as of 2026). Self-employed individuals, freelancers, and sole proprietors pay this tax on their net business income in addition to federal income tax and federal self-employment tax (15.3%).
Self-Employment in Mississippi
Mississippi is transitioning to a flat 4.7% rate (previously progressive). Self-employment income is taxed at this standard rate. No separate state SE tax.
Estimated Tax Requirements
Quarterly estimated payments required if you expect to owe $200 or more. Standard federal due dates apply.
MississippiDeductions & Credits
- Mississippi standard deduction: $2,300 (single) / $4,600 (married filing jointly)
- Mississippi does not conform to many federal deductions
- Credit for taxes paid to other states
Business Filing Fees
LLC: $50 formation + $0 annual fee. Corporation: $50 formation + annual franchise tax.
Key Facts About Mississippi Taxes
- Mississippi is transitioning to a flat tax — previously had rates up to 5%
- Very low estimated payment threshold at $200
- 7% sales tax is one of the highest flat state rates
- No annual LLC fee — one of the cheapest states for LLC maintenance
Track Your Mississippi Business Expenses
TaxTidy helps Mississippi freelancers and self-employed individuals track every business expense with AI-powered receipt scanning. Snap a photo of any receipt and TaxTidy instantly extracts the vendor, amount, and tax category — then maps it to the correct IRS Schedule C line. At tax time, generate an audit-ready PDF report with all your deductions organized and totaled.
Frequently Asked Questions
What is Mississippi's income tax rate?
Mississippi has transitioned to a 4.7% flat income tax rate as of 2026. The first $10,000 of income is exempt.
How much does a Mississippi LLC cost?
Mississippi LLCs cost $50 to form with no annual fee — among the cheapest in the nation.
When are Mississippi estimated taxes due?
Quarterly on April 15, June 15, September 15, and January 15. Required if you expect to owe just $200 or more.
Official source: Mississippi Department of Revenue
TaxTidy provides expense organization tools based on the most current US tax law available to it. TaxTidy is not a CPA, Enrolled Agent, or licensed tax professional. All categorizations, deductions, and tax calculations are estimates. Please verify all data for accuracy and consult a certified tax professional before filing.
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