Mississippi Tax Law Changes 2025
A new year brings with it important changes in tax laws that are vital for every individual and business in Mississippi to know. With both federal and local state tax laws changing, individuals across every income bracket are likely to be affected, as well as businesses operating in the great Magnolia State. Not only is it important for you to know the new tax laws to ensure you’re in complete compliance with the IRS but it’s also crucial to be aware of when you’re doing any financial planning for the years ahead. Watkins & Co. has proudly provided businesses and individuals across Mississippi with experienced and knowledgeable tax services. Offering everything from financial planning to filing taxes for individuals, tax advice, estate planning, and serving as business tax accountants, we’ve helped our local community members navigate the tax world successfully. Our skilled tax accountants strive to keep you fully informed so that you can make the best decisions for your financial future.
What’s Changing in Mississippi’s Tax Laws in 2025
In addition to the federal tax changes in 2025, as discussed in the previous article, Mississippi’s new tax laws also hold several changes.
Mississippi is considering various tax reforms for 2025 that will affect residents and business owners across the state.
- Individual income tax in Mississippi 2025: Mississippi has planned to eventually bring state income tax to a flat 4%, and with that goal in mind, has been conducting a phased reduction in individual income taxes. 2025 continues that process with a reduction of individual taxes with the top marginal rate decreasing to 4.4% (it was 4.7% in 2024).
- Mississippi property tax law changes 2025: This year, Veterans who are 90 years or older will be exempt from ad valorem taxes on homestead properties.
- Hazardous waste cleanup tax: This tax is applied on the sales of petroleum and petroleum products, and it will increase to 1.12% this year (up from 0.675 last year).
- Corporate income tax law changes in MS 2025: Another tax aspect that the state of Mississippi is phasing out slowly is capital tax stock, although no changes have occurred this year.
What can you expect as upcoming changes in tax laws over the next several years?
As of now there is legislative interest in making changes to various aspects of Mississippi’s tax laws.
- Sales tax: Currently, Misssippis has the highest grocery sales tax in the nation at 7%. Legislators are pushing to reduce this over the next several years.
- Individual income taxes: The phase out will continue until these taxes are established at a flat rate of 4%. As of now, it is projected to end next year (2026) at a flat rate of 4%.
Best Tax Accountants Near Me
For experienced guidance in filing for taxes and tax planning for yourself of your business, visit Watkins & Co. Working with Watkins & Co. brings several advantages for you. As Mississippi natives, we are well-versed in Mississippi tax laws as well as federal tax requirements. We offer proactive planning designed to keep you fully informed and able to make wise financial decisions that adapt to the changing tax laws each year. From individual tax preparation to complicated business tax filing and planning, we offer comprehensive services that cover every aspect of your financial needs. Watkins & Co. is your knowledgeable, local tax accounting firm and you can rely on us to protect your financial interests for years to come.