Mississippi Property Tax Overview

Keywords: Mississippi property tax, property tax in Mississippi, Mississippi property tax rate

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1. Summary of Recent Data

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

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2. How the Mississippi Property Tax Rate Is Applied

The effective Mississippi property tax rate of 0.74 % represents the amount of tax paid per dollar of assessed property value, expressed as a percentage. The actual tax bill for a specific property is calculated by multiplying the assessed value by this rate, subject to any local exemptions, millage adjustments, or supplemental levies.

Example Tax Bills

*Calculated using the state‑wide average effective rate of 0.74 %. Individual results may differ because counties and municipalities set their own millage rates and may offer additional exemptions.

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3. Variation Across Counties

Property tax in Mississippi is administered at the county level, and each county (and many municipalities) can set its own millage rates. Consequently, the effective property tax rate can be higher or lower than the state average of 0.74 % depending on where the property is located. Homeowners should consult the local tax assessor’s office for the precise rate applicable to a specific parcel.

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4. Comparison to the National Average

• National average effective property tax rate (2026): 0.97 %
• Mississippi’s rate: 0.74 %
• Difference: Mississippi’s rate is 23.87 % below the national average.

This places Mississippi in the lower half of U.S. jurisdictions for property tax burden, ranking 20th out of 52 states and territories evaluated by the ACS.

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5. Considerations for Retirees and Landlords

Retirees

• Lower tax burden: The below‑national‑average effective rate reduces the annual cost of home ownership relative to many other states.
• Exemptions: Mississippi offers homestead exemptions for seniors (e.g., a $5,000 exemption on the assessed value for owners age 65 or older), which can further lower the tax liability.
• Impact: These factors can make the overall cost of housing more predictable for retirees, though other cost‑of‑living elements (e.g., income tax, healthcare) are not addressed here.

Landlords

• Tax on investment properties: Landlords pay property tax on the assessed value of rental real estate at the same effective rate as owner‑occupied homes.
• Potential deductions: Federal tax law allows property tax to be deducted as an expense on Schedule E, which can offset the cash outlay.
• Market effect: The relatively low Mississippi property tax rate may be a factor when evaluating the total cost of owning rental property, but landlords should also consider local vacancy rates, rental demand, and any county‑specific levies.

Both groups should verify local rates and any applicable exemptions with the county tax assessor to obtain an accurate estimate of their individual tax obligations.

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6. Frequently Asked Questions

Q1: How is the effective property tax rate calculated?
A: The effective rate is the total property tax bill divided by the market value of the property, expressed as a percentage. It aggregates all local millage rates and adjustments applied to the assessed value.

Q2: Can the property tax rate change from year to year?
A: Yes. County and municipal governments may adjust millage rates annually to meet budgetary needs. Changes are typically reflected in the next tax billing cycle after adoption by the governing body.

Q3: Are there any statewide exemptions that lower property tax in Mississippi?
A: Mississippi provides a standard homestead exemption of $2,000 for all owners and additional exemptions for seniors (age 65+), disabled persons, and certain veterans. These exemptions reduce the assessed value used in the tax calculation.

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7. References

• U.S. Census Bureau, American Community Survey (ACS) 5‑year estimates, 2023. Data on median home value, effective property tax rate, and median annual tax.
• Mississippi Department of Revenue, Property Tax Section. Information on county administration and exemption programs.

All figures are based on the most recent ACS estimates and reflect statewide averages; individual property tax bills may vary.