Mississippi Capital Gains Tax Calculator
Mississippi taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Mississippi income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Mississippi state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Mississippi Department of Revenue brackets for tax year 2025, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Mississippi state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Mississippi Department of Revenue so you can confirm any special rule that applies to you.
Mississippi taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $0.00 in Mississippi state tax, an effective rate on the gain of 0.00%.
How Mississippi taxes capital gains
Mississippi taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Mississippi bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Mississippi capital gains tax: frequently asked questions
How are capital gains taxed in Mississippi?
Mississippi taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Mississippi income tax brackets published by the Mississippi Department of Revenue. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Mississippi Department of Revenue.
How much state tax will I pay on a $20,000.00 capital gain in Mississippi?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $0.00 of Mississippi state income tax for a single filer, an effective rate on the gain of 0.00%. Your figure depends on your total income and filing status; enter them above.
Does Mississippi have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Mississippi Department of Revenue; this calculator uses the ordinary income method and links the source.
What is Mississippi's income tax rate for 2025?
For tax year 2025, Mississippi imposes no tax on the first $10,000 of taxable income and taxes income over $10,000 at 4.4%, under Mississippi Code §27-7-5 as amended by HB 531 (2022). This continues a multi-year phased reduction toward eliminating the state income tax.
How is Mississippi phasing out its income tax?
Mississippi HB 531 (2022) established a schedule of annual rate reductions. The 5% top rate was reduced to 4.7% in 2024, then to 4.4% in 2025, and will drop to 4.0% in 2026. Further reductions are planned toward a long-run target of 3.0% by 2030, with full elimination contingent on the state meeting revenue benchmarks.
What standard deduction and exemptions does Mississippi allow?
Mississippi's standard deduction is $2,300 for single filers and married filing separately, $4,600 for married filing jointly, and $3,400 for head of household. In addition, Mississippi allows personal exemptions: $6,000 for single, $12,000 for married filing jointly, $9,500 for head of household, and $6,000 for married filing separately. Both the standard deduction and personal exemption reduce Mississippi taxable income.
Does Mississippi tax retirement and Social Security income?
Mississippi is one of the most retirement-friendly states for income tax purposes. Mississippi does not tax Social Security benefits, public or private pension income, or distributions from qualified retirement plans such as 401(k) or IRA accounts. This exemption applies regardless of the taxpayer's age or income level.
Official sources
- Mississippi income tax rates applied to capital gains (tax year 2025): Mississippi Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Mississippi Department of Revenue.