Ad Valorem Tax in Mississippi: Assessment, Homestead, and Payment

Ad valorem tax in Mississippi is the state’s property tax, charged as a percentage of what your property is worth. Your bill depends on three things: which of five constitutional property classes your asset falls into, the “true value” the county Tax Assessor places on it, and the millage rate your local taxing authorities set each year. Because Mississippi taxes only a fraction of true value, the number on your bill is usually much smaller than a straight percentage of market value would suggest.

How the Tax Is Calculated

Three numbers produce your bill. First, the Tax Assessor sets the true value of your property. Second, that value is multiplied by an assessment ratio fixed by the Mississippi Constitution based on the property’s class. Third, the resulting assessed value is multiplied by the total millage rate for your location. Exemptions, when they apply, come off at the end.

A mill equals one-thousandth of a dollar, so each mill produces $1 of tax per $1,000 of assessed value. Your total millage is the sum of what the county, municipality, and school district each need to raise.¹

The Five Property Classes and Their Assessment Ratios

Article 4, Section 112 of the Mississippi Constitution sorts every taxable asset into one of five classes, each with its own ratio.²

Class I is single-family, owner-occupied residential property, assessed at 10% of true value. This is the lowest ratio in the state and applies to your primary home.
Class II is all other real property not covered by Class I or Class IV, assessed at 15%. Commercial buildings, rental houses, and vacant land fall here.
Class III is personal property other than motor vehicles and public utility property, assessed at 15%. Business equipment, furniture, and inventory are typical examples.
Class IV is public utility property that the state or county is required to appraise, assessed at 30%. Railroad and airline property are specifically excluded from this class.
Class V is motor vehicles, assessed at 30%.

The difference matters. Two properties on the same street with a $200,000 true value produce different assessed values depending on class: $20,000 for a Class I home, $30,000 for a Class II commercial building. A $20,000 vehicle carries an assessed value of $6,000.²

How True Value Is Set

Under Mississippi Code § 27-35-50, true value encompasses market value, cash value, and actual cash value. The Tax Assessor weighs three approaches: the income the property generates, what it would cost to rebuild, and what comparable properties have recently sold for.³

For Class I and Class II property, the appraisal must reflect current use, not hypothetical use. A residential lot next to a busy commercial corridor is valued as a home, not as future retail. Agricultural land is valued under a separate formula built around soil productivity and a capitalization rate of at least 10%.³

A Worked Example

Say you own a home with a true value of $180,000. As Class I property, it is assessed at 10%, giving an assessed value of $18,000. If the combined millage rate where you live is 130 mills, you multiply $18,000 by 0.130. The annual property tax is $2,340 before any exemption.

Homestead Exemption

The homestead exemption is the main way most Mississippi homeowners reduce their bill. To qualify for either tier, you must be a Mississippi resident, own and occupy the home, and qualify as a head of family under Mississippi Code § 27-33-13.⁴

Regular Exemption

Qualifying homeowners under age 65 who are not totally disabled receive a tax credit of up to $300 against the property tax bill. The exact credit depends on the property’s value.⁴

Age and Disability Exemption

If you are at least 65 or totally disabled by January 1 of the tax year, the exemption is more generous: taxes on the first $7,500 of assessed value are wiped out. After the first year, the exemption can increase to cover most future increases in value.⁵ For a home assessed at $15,000, that removes half the taxable base.

Age can be proven with a driver’s license or birth certificate. Disability can be proven with a Social Security Administration disability classification, a classification under the Railroad Retirement Act, IRS Schedule 3 and Schedule R, or a detailed letter from two physicians.⁴

How and When to Apply

Applications are filed at the county Tax Assessor’s office. Bring Social Security numbers for all applicants, the total purchase price, and any closing documents. The deadline is April 1 of the tax year, and missing it means waiting a full year for the benefit. If ownership, property description, or occupancy changes after approval, you must refile to keep the exemption.⁴

When Payment Is Due

All ad valorem taxes are due on or before February 1 of the year after assessment. If February 1 falls on a weekend or legal holiday, payment on the following Monday is on time.¹ The county Tax Collector mails bills toward the end of each year.

Some counties allow partial payments on a set schedule: half by February 1, a quarter by May 1, and the final quarter by July 1. Not every county participates, so confirm with the Tax Collector before relying on the option. Motor vehicle ad valorem tax does not qualify for partial payments and must be paid in full when due.⁶

What Happens If You Don’t Pay

If any balance remains unpaid on August 1, the property can be sold at the county’s tax sale on the last Monday in August.⁶ Interest accrues during the delinquent period.¹

You still have two years to get the property back. Under Mississippi Code § 27-45-3, redemption requires paying the chancery clerk the full amount of delinquent taxes, all costs from the sale, a 5% damage charge on the tax amount, and interest at 1.5% per month from the date of sale.⁷ On a $3,000 tax debt, one year of that interest alone is $540, on top of the 5% charge and accrued costs. Once the two-year window closes, the purchaser can obtain a tax deed and the property is lost.

Challenging Your Assessment

If you think the Tax Assessor overvalued your property or put it in the wrong class, start informally. Contact the county Tax Assessor’s office and ask for a review. Bring recent comparable sales, evidence of damage, or anything else that supports a lower value.

If that doesn’t resolve it, file a formal written appeal with the county Board of Supervisors while the assessment rolls are open for public inspection. That window typically opens in July. Watch local public notices or call the Board of Supervisors office after the first Monday in July for exact dates. If the Board rules against you, Mississippi Code § 27-35-119 provides a further appeal to Circuit Court.

Present your evidence fresh at each stage. The Board decides on what you put in front of it, not on whatever was discussed with the assessor.

Federal SALT Deduction

Mississippi ad valorem taxes qualify for the federal state and local tax deduction if you itemize. For the 2026 tax year, the SALT cap is $40,400 for most filers and $20,200 for married couples filing separately, with a phase-down starting when modified adjusted gross income exceeds $500,000. Because the cap covers state income taxes and property taxes combined, most Mississippi homeowners will not hit it on property taxes alone.

1
Mississippi Department of Revenue. Property Tax Frequently Asked Questions
2
FindLaw. Mississippi Constitution Art 4 Section 112
3
Justia Law. Mississippi Code 27-35-50 – Determination of True Value for Purposes of Assessment
4
Mississippi Department of Revenue. Homestead Exemption
5
Justia Law. Mississippi Code 27-33-3 – Homestead Exemption Generally
6
Justia Law. Mississippi Code 27-41-1 – Taxes When Due, Payable and Collectible
7
Justia Law. Mississippi Code 27-45-3 – Persons Who May Redeem Land