Mississippi Capital Gains Tax: 2026 Rules and Calculator
Mississippi lowers its rate every year through 2030, so payments received in later years are taxed at lower Mississippi rates. Here is what a Mississippi seller pays in 2026, layer by layer, and a calculator for your own sale.
Short answer: Mississippi taxes capital gains as ordinary income: 0% on the first $10,000 of taxable income and 4% above that for 2026 (4.4% for 2025), stepping down to 3.75% for 2027. On top of that comes federal capital gains tax (0%, 15% or 20% for 2026 under IRS Rev. Proc. 2025-32, and up to 25% on building depreciation) and the 3.8% net investment income tax above $250,000 of income for married couples or $200,000 single (IRC 1411).
Mississippi capital gains tax calculator
Enter your sale: rental property, your home, land, a business, stock or collectibles. You get the 2026 tax in Mississippi (federal, the 3.8% tax and Mississippi tax) and the same sale spread over the years the buyer pays you. It runs in your browser on the same engine as our capital gains tax calculator.
You keep $1,129,872 after selling costs and tax. The tax is 25.2% of your gain.
Your gain
- Sale price less selling costs$1,410,000
- Less your basis$300,000
- Your taxable gain$1,110,000
- Long-term gain at 0%, 15% or 20%$1,110,000
The tax, line by line
- Federal income tax (incl. $9,208 AMT)$199,248
- Net investment income tax (3.8%)$36,480
- Mississippi tax$44,400
- Total tax$280,128
- You keep$1,129,872
Get the REAL numbers
Talk to capital gains expert Hans Goldstein, EA.
These are estimates. Have a qualified tax professional run your real numbers in a 15-minute scope call.
Why now: the closing date and how the buyer pays you are set before closing, and they decide how much Mississippi and federal tax this sale costs.
Book my 15-minute callThis is an estimate. Getting it right down to the tee takes your actual tax forms (returns, K-1s, depreciation schedules), a consult and a paid analysis. The first 15-minute scope call is free.
How Mississippi taxes capital gains in 2026
Mississippi taxes capital gains as ordinary income: 0% on the first $10,000 of taxable income and 4% above that for 2026 (4.4% for 2025), stepping down to 3.75% for 2027.
- The rate keeps falling: 3.75% for 2027, 3.5% for 2028, 3.25% for 2029 and 3.0% for 2030 (2025 HB 1).
Selling Mississippi property while living elsewhere: Mississippi taxes a nonresident on gain from real estate and other property located in Mississippi, so selling Mississippi property from another state still means a Mississippi return.
Worked example (computed October 13, 2026)
A land sale spread over 10 years, where later payments meet lower Mississippi rates. A married couple filing jointly in Mississippi sells land for $1,500,000 with $90,000 of selling costs. Basis is $300,000, and other income is $100,000.
- Taxable gain: $1,110,000.
- All in one year (2026): $199,248 federal income tax, $36,480 net investment income tax and $44,400 Mississippi tax (4% of the gain): $280,128 in total, 25.2% of the gain.
- Spread over 10 years on a note: $155,917 of tax on the gain, so the seller keeps $124,211 more. Interest on the note is taxed separately.
What the calculator simplifies
It applies the rule above to the whole gain for one sale in 2026. It also leaves out local taxes unless named above, the alternative minimum tax effect of note interest, and equipment recapture on a business sale. Federal tables for later years carry the 2026 tables forward.
Spreading a Mississippi sale over several years
On an installment sale the gain is reported as the buyer pays you (IRC 453), so each year's slice can stay in lower federal brackets and under the 3.8% threshold. Building depreciation is reported first (Treas. Reg. 1.453-12), equipment recapture is taxed in the year of sale (IRC 453(i)), and notes over $5,000,000 owe the Section 453A interest charge. More on how it works: what a structured installment sale is.
Sources
- Mississippi Department of Revenue, individual income tax rates (tax years 2025 to 2027)
- IRS Rev. Proc. 2025-32: 2026 federal brackets.
- IRC 1(h) and IRC 1411: capital gain rates and the 3.8% tax (as in force October 2026).
What is the tax bill on your Mississippi sale going to be?
Send me the sale price and rough basis. Within one business day I'll email you the actual number and the Seller's Guide to §453. If it doesn't fit your deal, I'll tell you that plainly.
No retainer · no obligation. Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
Frequently asked
What is the capital gains tax rate in Mississippi for 2026?
Mississippi taxes capital gains as ordinary income: 0% on the first $10,000 of taxable income and 4% above that for 2026 (4.4% for 2025), stepping down to 3.75% for 2027. Federal capital gains tax and the 3.8% net investment income tax come on top.
How much tax on a $1,500,000 sale in Mississippi?
In the example on this page, a married couple filing jointly selling land for $1,500,000 with a $1,110,000 taxable gain owes $280,128 in 2026: $199,248 federal, $36,480 net investment income tax and $44,400 Mississippi tax. Spread over 10 years, the tax is $155,917.
Do nonresidents pay Mississippi tax when they sell property there?
Mississippi taxes a nonresident on gain from real estate and other property located in Mississippi, so selling Mississippi property from another state still means a Mississippi return.
Does Mississippi have a capital gains deduction or special rule?
The rate keeps falling: 3.75% for 2027, 3.5% for 2028, 3.25% for 2029 and 3.0% for 2030 (2025 HB 1)