If you earned income from Mississippi sources without living there, Mississippi non-resident income tax filing requirements apply to you whenever your Mississippi-source gross income exceeds your allowable personal exemption plus the standard deduction (prorated to your Mississippi share). For tax year 2025, the rate is 4.4% on taxable income above $10,000, and returns are due April 15, 2026.1Mississippi Department of Revenue. General Information The rate drops to 4% for tax year 2026.
Who Has to File
You owe a Mississippi non-resident return if you own or sell property, earn wages, or conduct business in the state and your Mississippi-source gross income is more than your allowable exemptions and deductions combined.2Justia Law. Mississippi Code 27-7-31 – Returns of Income Tax The standard deduction is $2,300 for single filers, $3,400 for head of household, and $4,600 for married couples filing jointly. Personal exemptions are $6,000 single, $12,000 married filing jointly, and $9,500 head of household, with $1,500 added for each dependent and $1,500 each for being 65 or older or blind.3Mississippi Department of Revenue. Resident, Non-Resident and Part-Year Resident Income Tax Instructions
One group is carved out of the filing requirement. If your only Mississippi income is gambling winnings, you don’t file a return. The casino withholds 3% at payout, and that withholding document is the end of the matter.4Mississippi Department of Revenue. Resident, Non-Resident and Part-Year Resident Income Tax Instructions
When the Return Is Due
Tax year 2025 returns are due April 15, 2026. An extension pushes the filing deadline to October 15, 2026, but any tax owed is still due April 15. Interest and the late-payment penalty start running the next day on any unpaid balance, extension or no extension.5Mississippi Department of Revenue. Individual Income Tax Frequently Asked Questions
What Counts as Mississippi-Source Income
Mississippi can tax wages for services physically performed in the state, rental income from Mississippi property, business profits from operations conducted in the state, gains on the sale of Mississippi real estate, and your share of income from partnerships, trusts, or estates operating there.6Justia Law. Mississippi Code 27-7-5 – Imposition of the Tax S corporations don’t pay Mississippi income tax at the entity level, but shareholders owe tax on the Mississippi-sourced income that flows through to them.
Where the work is physically done controls, not where the employer sits. If you live in another state and work entirely from home for a Mississippi-based employer, those wages generally aren’t taxable by Mississippi. If you split time between home and a Mississippi office, only the income tied to days worked in Mississippi is Mississippi-source.7Mississippi Department of Revenue. Business Tax Frequently Asked Questions
Retirement income, pensions, and annuities are generally not subject to Mississippi income tax if the recipient has met the plan’s retirement requirements. Early distributions aren’t treated as retirement income and may be taxable.5Mississippi Department of Revenue. Individual Income Tax Frequently Asked Questions
How to Calculate What You Owe
Start with your Mississippi-source gross income. Then figure the ratio of that income to your total income from all sources. That ratio determines how much of your deductions and exemptions you get to claim.
Non-residents don’t get the full standard deduction or full personal exemption. You multiply each by your Mississippi-to-total income ratio. The same proration applies to itemized deductions like charitable contributions, medical expenses, and mortgage interest, and to dependent, age, and blindness exemptions.8Justia Law. Mississippi Code 27-7-23 – Net Income of Nonresident and Foreign Taxpayers The ratio can never exceed 100%. Business expenses tied directly to generating your Mississippi income are deductible against that income in full.
If 30% of your total income comes from Mississippi, for example, you’d claim 30% of the $4,600 standard deduction and 30% of your $12,000 married-filing-jointly exemption against your Mississippi-source income. The remainder, taxed at 4.4% above the first $10,000, is what you owe for 2025.
Running a business in more than one state adds a layer. You apportion business income using a three-factor formula built on property, payroll, and sales, each measuring your in-state share against your total.9Legal Information Institute. 35 Miss. Code. R. 3-08-06-402.09 – Apportionment Factors
What Gets Withheld Before You File
Mississippi collects tax at the source in several situations, so some of what you owe may already be paid in by the time you sit down to file.
Employers withhold Mississippi income tax from non-resident employees’ paychecks for work performed in the state. If a non-resident employee’s Mississippi earnings for the year will be less than the standard deduction amount, the employer isn’t required to withhold.7Mississippi Department of Revenue. Business Tax Frequently Asked Questions
When a non-resident sells Mississippi real property for more than $100,000, 5% of the amount realized is withheld and sent to the Department of Revenue at closing. If 5% is more than the net proceeds payable to you after closing costs, only the actual net proceeds get remitted.10Justia Law. Mississippi Code 27-7-308 – Withholding by Seller on Gross Proceeds Realized by Nonresident Seller of Real Property If the amount withheld exceeds your actual tax on the gain, you claim the overage back on your non-resident return.
Casinos withhold 3% of gambling winnings at payout.11Mississippi Department of Revenue. Withholding on Mississippi Gaming Winnings
Estimated Tax Payments
If your Mississippi tax will exceed $200 for the year and withholding will cover less than 80% of it, you must make quarterly estimated payments.12Legal Information Institute. 35 Miss. Code. R. 3-11-21-100 – Individual Estimated Tax This catches non-residents with rental income, pass-through business income, or real estate gains where no employer is handling withholding. Underpayment means interest on the shortfall.
You can pay through the Department of Revenue’s Taxpayer Access Point (TAP) at no charge. Credit card and e-check payments are also accepted online with a convenience fee.13Mississippi Department of Revenue. Make Online Tax Payments
Avoiding Being Taxed Twice
Mississippi doesn’t have reciprocal agreements with other states that would exempt non-resident wages up front. Relief from double taxation comes from your home state, not Mississippi. Most states let their residents claim a credit for income tax paid to another state. If you live in Alabama and earn wages in Mississippi, you pay Mississippi first and then claim a credit on your Alabama return for the Mississippi tax, generally wiping out the double hit on the same income. The mechanics vary by home state, so check how yours calculates the credit.
Penalties for Filing or Paying Late
Failure to file and failure to pay are separate penalties and stack when both apply.
The failure-to-file penalty is 5% of unpaid tax for each month or partial month the return is late, capped at 25%, with a $100 minimum even if little or no tax is owed.4Mississippi Department of Revenue. Resident, Non-Resident and Part-Year Resident Income Tax Instructions If you extend to October 15 and file by then, this penalty doesn’t apply.
The failure-to-pay penalty is one-half of 1% per month, also capped at 25%. Interest accrues at one-half of 1% per month from the original April 15 due date until the balance is paid.4Mississippi Department of Revenue. Resident, Non-Resident and Part-Year Resident Income Tax Instructions An extension to file is not an extension to pay. Owe $2,000 and extend? The late-payment clock starts April 16.
Situations That Change the Answer
Military Spouses
Under the Military Spouses Residency Relief Act, the spouse of an active-duty service member stationed in Mississippi can keep their prior state of residency and avoid Mississippi income tax on wages. The spouse must live in Mississippi solely because of the service member’s orders, and both spouses must claim the same state of domicile. The exemption covers the spouse only; the service member still owes Mississippi tax on any non-military income.14Mississippi Department of Revenue. Military Spouses Residency Relief Act
Prior Years You Should Have Filed
If you realize you should have been filing Mississippi non-resident returns in earlier years, the Department of Revenue’s Voluntary Disclosure Agreement program caps the look-back at three years for income taxes and waives late-filing and late-payment penalties in exchange for coming forward. You still owe the tax plus interest. The program isn’t available if you’ve filed Mississippi returns before and fallen behind, or if the department has already contacted you about the missing returns.15Mississippi Department of Revenue. Voluntary Disclosure Agreement Program