How does Mississippi tax capital gains?

Mississippi has no special capital-gains rate. Gains are taxed as ordinary income at the state's near-flat 4.7% rate (2024). However, Mississippi exempts gains from the sale of authorized shares in Mississippi-domiciled corporations and certain Mississippi-located real and tangible property held for more than one year.

What is the federal long-term capital gains rate?

Long-term gains (assets held more than a year) are taxed federally at 0%, 15%, or 20% depending on your taxable income. Most middle-income filers fall in the 15% bracket. Short-term gains (held a year or less) are taxed as ordinary income at your regular federal marginal rate.

Which Mississippi gains are exempt?

Mississippi excludes from taxable income gains realized on the sale of authorized shares in domestic (Mississippi) corporations, partnership interests, and other property held more than one year when the entity is domiciled in Mississippi. The exemption is meant to encourage in-state investment.

Does the 3.8% net investment income tax apply?

It can. High earners (modified AGI over $200,000 single or $250,000 joint) owe an additional 3.8% federal net investment income tax on investment gains. This calculator focuses on the base federal and Mississippi rates; add 3.8% if you exceed those thresholds.

Is this estimate exact?

No. Capital gains taxation depends on your full income, the exact asset, and holding period. This tool gives a base estimate of the federal plus Mississippi tax; consult a tax professional for filing.

Mississippi Capital Gains Tax Calculator

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When you sell an investment at a profit in Mississippi, you may owe both federal capital gains tax and Mississippi income tax. This calculator combines the federal short- or long-term rate with Mississippi’s flat 4.7 percent treatment, and exempts the gain when it qualifies under state law.

How it works

Federal tax depends on how long you held the asset. Long-term gains (held more than a year) are taxed at 0, 15, or 20 percent by income band. Short-term gains are taxed at your ordinary federal marginal rate:

federal tax = gain × federal rate

Mississippi has no separate capital-gains rate — gains are ordinary income taxed at the flat 4.7 percent 2024 rate. But Mississippi exempts qualifying gains on authorized shares of Mississippi-domiciled corporations and certain in-state property held more than one year:

MS tax = qualifying ? 0 : gain × 0.047
total  = federal tax + MS tax

Example

A 20,000 dollar long-term stock gain in the federal 15 percent bracket owes 3,000 dollars federally. If the stock is not a Mississippi-domiciled exemption asset, Mississippi adds 20,000 × 4.7 percent = 940 dollars, for 3,940 dollars total. If the gain qualifies for the Mississippi exemption, the state tax is zero and you owe only the 3,000 dollar federal tax.

Notes

Estimate only, not tax advice. The 3.8 percent net investment income tax may apply at higher incomes and is not included. Mississippi’s flat rate phases to 4.4 percent (2025) and 4.0 percent (2026). The Mississippi exemption has specific holding-period and domicile rules; confirm eligibility with a tax professional and dor.ms.gov.