At a glance
- Corporate tax
- 0% / 4% / 5% (over $10,000)
- Tax on wages
- 4.0% over $10,000 (2026)
- Sales tax
- 7% + some local
- Economic nexus
- $250,000 in sales (12 months)
- Minimum wage
- $7.25/hr (federal)
- UI wage base
- Published by MDES
- New-employer UI rate
- Assigned by MDES
- Paid leave program
- None
- Annual report
- $25 (foreign corporation)
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Qualify with the Secretary of State
Before transacting business in MississippiApply to the Secretary of State for a certificate of authority, $500 for a profit corporation.
Register with the Department of Revenue
Before the first Mississippi payrollRegister through TAP for corporate income and franchise tax and withholding.
Open an unemployment insurance account
Before the first Mississippi payrollRegister with MDES for unemployment insurance; MDES assigns the new employer rate.
Report new hires
Within 15 business days of the first day of workReport each new hire or rehire to the State Directory of New Hires.
Arrange workers’ compensation
At five employeesBuy workers’ compensation coverage once five employees are regularly employed.
Register for sales tax if you have nexus
When taxable Mississippi sales startRegister for sales tax if you sell taxable goods or software into Mississippi above $250,000 in 12 months, or have a Mississippi location.
Calendar the annual report
Every yearFile the Secretary of State annual report, $25.
The six areas
- AccountingAccounting and state tax in MississippiMississippi taxes corporate income at 0% on the first $5,000, 4% on the next $5,000 and 5% above, keeps a throwback rule, and is phasing out its franchise tax: $0.50 per $1,000 of capital in 2026, repealed from 2028.Corporate income taxTop rate 5%
- ReceivablesReceivables and sales tax in MississippiMississippi charges 7% plus some local taxes, requires remote sellers to register above $250,000 in 12 months, and since July 2023 does not tax software hosted outside the state and accessed over the internet.State sales tax rate7%
- PayablesPayables and contractors in MississippiMississippi takes 1099s for personal services only at $3,000 or more, due February 28, and since 2023 exempts software hosted outside the state from use tax, leaving use tax mainly for goods and downloads.1099 threshold, personal services$3,000
- PayrollPayroll taxes and employer rules in MississippiMississippi payroll is 4.0% withholding on income over $10,000 for 2026, unemployment insurance through MDES, new-hire reports within 15 business days, and workers’ comp from five employees.State income tax (2026)4.0%
- ComplianceCompliance and filings in MississippiMississippi compliance is a $500 certificate of authority, a $25 annual report, the corporate income and franchise tax return by the 15th day of the fourth month, and an unclaimed property report by November 1.Certificate of authority (profit corporation)$500
- AdvisoryAdvisory: credits and decisions in MississippiMississippi is cutting its individual rate to 4.0% in 2026 and 3.0% by 2030, repealing its franchise tax from 2028, and since 2023 exempting SaaS hosted outside the state; its quirks are throwback and its own 1099 threshold.Individual income tax (2026)4.0%
Who you register with
- Mississippi Department of RevenueCorporate income and franchise tax, withholding, and sales and use tax (TAP)
- Mississippi Department of Employment Security (MDES)Unemployment insurance registration and quarterly reports
- Mississippi Secretary of StateCertificate of authority and the annual report
- Mississippi State Directory of New HiresNew hire reports
- Mississippi State Treasurer — Unclaimed PropertyAnnual holder report
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are Mississippi’s neighbors.
- ALAlabama6.5% after federal tax, automatic conformity, and a local tax layer city by city.
- ARArkansas4.3% top corporate rate, an annual franchise tax, and an $11.00 minimum wage
- LALouisianaFlat 5.5% corporate tax, no franchise tax from 2026, and SaaS taxed by state and parish
- TNTennesseeNo wage tax, but franchise, excise and gross-receipts taxes on the entity, and taxed SaaS.
Common questions
What is happening to the Mississippi franchise tax?
It is going away. The rate was $0.75 per $1,000 of capital employed for tax years beginning in 2025 and is $0.50 for 2026, with a $25 minimum, as the last steps of a phase-out enacted in 2016. Until then it is reported on the same return as the income tax.
Is our SaaS taxable in Mississippi?
Generally not, if it runs on servers outside Mississippi. Since July 1, 2023 computer software maintained on a server outside the state and accessible only via the internet is neither a taxable sale nor a taxable use. Software delivered by download or on media, custom software, and software hosted on a server in Mississippi remain taxable, as do installation, maintenance and training sold with taxable software.
Which 1099s do we file with Mississippi?
Mississippi sets its own threshold: 1099s for personal service income are reportable to the Department of Revenue at $3,000 a year, not the federal $600, while dividends, interest, rents and royalties are reportable at $600. They are due February 28, electronically if you have 10 or more.
How fast do we report new hires in Mississippi?
Within 15 business days of the worker’s first day, including rehires, to the Mississippi State Directory of New Hires.
What does it cost to register a Delaware corporation in Mississippi?
The Secretary of State charges $500 for a profit corporation’s application for a certificate of authority, and $25 for each annual report after that. A foreign LLC pays $250 a year for its annual report, so the corporation is the cheaper entity to keep registered here.
How is Mississippi’s tax picture changing?
Mostly through rates. HB 1 (2025) set the individual rate at 4.0% for 2026, stepping down a quarter point a year to 3.0% in 2030, with further cuts after that only if revenue triggers are met. The franchise tax is in its final years before repeal in 2028.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Mississippi Department of Revenue — Business Tax Frequently Asked Questions
- Mississippi Department of Revenue — Corporate Income and Franchise Tax
- Mississippi Department of Revenue — Combined Income Filing
- Mississippi Department of Revenue — Sales Tax Rates
- Mississippi Department of Revenue — Use Tax
- Mississippi Department of Revenue — Withholding Tax
- EY Tax News — Mississippi SB 2449 (2023): computer software and remotely accessed software
- EY Tax News — Mississippi HB 1 (2025) personal income tax rate reductions
- Mississippi Secretary of State — Business Services fee schedule
- Mississippi State Directory of New Hires — Reporting Fundamentals
- Mississippi Workers’ Compensation Commission — Workers’ Compensation Facts
- Mississippi Department of Employment Security — Unemployment Tax
- Mississippi State Treasurer — Holder Reporting Form UP-1
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.