Are you considering a move to Mississippi and want to know what our property taxes are like?  And what about other taxes…like income tax and sales tax?  Well, I’m getting into that right now!

 

 

Hi, I’m Donna Taylor, broker/owner of Taylor Realty Group. One of the most frequently asked question we get from folks moving to Central MS from another state is how much our property taxes are. (by the way, the most frequently asked question is which neighborhood should we look at?  Be sure and check out the video I did on Madison’s top 5 neighborhoods.)  So, In today’s video we will cover the tax topic looking specifically at Madison MS since that’s where most of our buyers are looking to move.  Madison County taxes homes here based on the assessed value, which is NOT the same as the appraised value…in fact, it’s much less.  Nationally our property taxes are much lower than most states. Let’s look at a real example.  The average closed home price in Madison during the last 6 months was $440,000.  The tax on that average price home in Madison would be about $2,200 annually, which is roughly half of a percent of that sales price.  That’s assuming you file for homestead exemption.  Speaking of homestead, that’s another thing that might be a little different than what you’re used to seeing in other areas.  In Mississippi, homestead exemption is filed beginning in January 1st in the year AFTER you purchase your home.  So, you don’t need to worry about rushing to the tax assessor’s office right after you close.  Our taxes are billed in arrears.  So, tax bills are mailed out in December each year and are due by February 1st of the following year and the amount of tax you pay during your first year will depend on the SELLER’S tax status when you purchased the home.  So, make sure when you write that offer to check the homestead status, if that seller doesn’t have it in place, ask them to cover the difference that first year.  Then, in the following January, you can file for homestead, assuming you don’t have homestead filed on another home.  Also, if you are over the age of 65 or disabled you are eligible for an exemption on the first $75,000 of value on taxation.  So, when you are shopping for homes in Madison, budget about half of a percent for property taxes.

 

Next up let’s talk about the dreaded income tax!  The subject no one enjoys! The current governor of Mississippi has been working hard to reduce the state income tax to make MS more attractive to employers and workers!  Prior to this year, there was a tiered tax rate ranging from 3-5%.  Starting in 2024, there is a single flat rate of 4%.  The state government has the intention of phasing this 4% out over the coming years to continue economic growth to the state of MS.  

 

Next up is sales tax.  Here in Central MS, we have a 7% sales tax on all tangible items (except for cars). Cars are taxed at 5%...this is for both new and used cars.   And that 7% sales tax does apply to groceries.  But, the state does give a sales tax holiday in the summer to help ease the burden for back to school.  This year from July 12-14.  During that weekend any item less than $100 can be purchased free of tax for clothing, footwear, and school supplies.  So, go ahead and put that on your calendar if you are buying school supplies or clothes for your kids or GRANDKIDS!

 

If you’re thinking of moving to Central MS, be sure and check out our website www.taylorgroupms.com, it has all MLS listings in Central MS and is updated every 10 minutes.  Whether you're buying or selling, our team is here to help every step of the way.  Contact us today to get started.

 

Taylor Realty Group

601-613-9100