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Capital Gains Tax in Mississippi
By Priya Raman
A mid-range rate among its Southern neighbors.
A mid-range rate among its Southern neighbors.
Mississippi taxes capital gains as ordinary income, topping out at 4.70% at the state level. Combined with the federal 20% rate and the 3.8% net investment income tax, an investment property sale can reach up to 28.5%.
The 28.5% figure is straightforward: 20% federal, 3.8% NIIT for higher earners, and 4.70% Mississippi state tax, added together with no special carve-out for real estate. See what that means for a specific sale, depreciation recapture included, in the capital gains tax calculator.
None of that 28.5% is locked in if the property gets swapped rather than sold outright for cash. A 1031 exchange defers the whole combined rate by reinvesting the proceeds into a replacement property. Work through the numbers in the 1031 exchange calculator, then confirm your deadlines with the timeline calculator so the identification window doesn't slip.
Mississippi sellers weighing their options can also read 1031 exchange vs. paying capital gains now and what a qualified intermediary does.