Mississippi Property Taxes

Mississippi has one of the lower property tax rates, but that doesn’t mean that you don’t want to pay as little as you’re allowed to.

This post is provided for general information only. Please confirm the details and circumstances of your unique situation with your tax accountant or other appropriate advisor before taking action.

When do Mississippi property taxes apply?

Mississippi divides properties into several classes for property taxes.

  • Class I: Single-family, owner-occupied, residential property (e.g., your house if you own it and live in it)

  • Class II: Other types of real estate, including rental, business, and agricultural property

  • Class III: Business personal property (things like furniture, fixtures, machinery, and equipment)

  • Class IV: Certain types of property owned by public utility companies

  • Class V: Motor vehicles, including many mobile homes

How do you calculate property taxes in Mississippi?

There are two steps to calculating property taxes in Mississippi. First, you determine the assessed value. Then, you determine the taxes.

The assessed value is the property’s true value times a ratio. The true value is the fair market value. The true value is similar to what you could sell your house for or the book value of your car, but the county tax assessor’s office will use a slightly different calculation.

The ratio is a fixed amount that depends on the class of property.

  • Class I: 10%

  • Class II and Class II: 15%

  • Class IV and Class V: 30%

So if the market value of your home is $100,000 and your home falls under Class I, the assessed value will be $10,000.

To determine your property taxes, you’ll multiply the assessed value by the millage rate.

Mississippi property taxes vary based on where you live because local taxing authorities, such as counties and school districts, can set their own tax rates. The local millage rates are often around 100 to 150 mills in total property taxes.

A mill means that you pay $1 in property taxes for every $1,000 in value. So 100 mills means $100 in taxes for every $1,000 in value. BUT, remember you also already multiplied your property value by 10%, so what looks like a 10% property tax rate is actually about a 1% property tax rate.

Mississippi Homestead Exemption

Mississippi has a homestead exemption for most homeowners. If your assessed value is $7,351 or more, you can generally reduce your ad valorem tax by $300.

Half of the $300 goes to school district taxes, and the other half goes to general taxes.

If your assessed value is under $7,351, your homestead exemption is equal to about 4% of your assessed value instead of $300. See the instructions on your property tax bill to calculate the exact amount of your homestead credit.

Homestead Exemption for the Elderly and Disabled

Mississippi property tax laws have special rules for senior citizens who are older than 65 and people who are disabled regardless of age.

Instead of the $300 credit, the first $7,500 of your property’s assessed value is exempt from ad valorem taxes. So if your assessed value is $10,000, you only pay property taxes on $2,500 in value.

In other words, if you’re older than 65, you can often stop paying property taxes if the true value of your home is $75,000 or less.

Homestead Exemption for Disabled Veterans

Disabled veterans with a total, service-connected disability are generally exempt from all ad valorem taxes after showing documentation to the county tax assessor’s office. Surviving spouses can also receive this benefit.

What is the Mississippi property tax rate?

The median property tax rate for homeowners in Mississippi works out to about 0.5% of your home’s market value after adjusting to the assessed value and applying exemptions.

When are Mississippi property taxes due?

Mississippi property taxes are normally due on February 1st for the previous your. Your tax bill is determined based on your property value as of January 1st in the previous year and is usually sent at the end of the year.

Example:

  • January 1, 2023: Local tax assessor determines your property value

  • December 1, 2023: Receive your property tax bill

  • February 1, 2024: Last day to pay your 2023 property taxes

What happens if you don’t pay Mississippi property taxes?

If you don’t pay your property taxes on time, you’ll generally have t pay an additional 1% in interest for every month you’re late.

If you don’t pay your property taxes by August, a tax lien may be sold on your home. You generally then have two years to pay off the lien plus interest of 1.5% per month.

If you don’t pay off the lien within two years, you could lose the title to your home to the lienholder.

What if you disagree with your property’s assessed value?

If you believe your property was assessed too high, the first step is to contact your county tax assessor. Be prepared to show supporting information, such as how similar properties to yours were assessed.

A common example is if your home is smaller than the others in your neighborhood, it might get assessed the same as the larger homes. If you show its size and that similar sized home were assessed lower, the tax assessor’s office may agree to lower your assessed value.

If you can’t reach an agreement with the tax assessor’s office, you can request a formal hearing in front of the County Board of Supervisors.

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