Selling a business in Mississippi: what the state takes (2026)
Mississippi’s top individual income tax rate is 4%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 4%
- Top Mississippi income tax rate (2026)
- $1,000,000
- State tax on a $25M long-term gain
- 27.8%
- Combined federal and state rate on $25M
- 30 of 51
- Rank by total tax on $25M (1 = highest)
How Mississippi taxes a business sale
- Income tax
- Top rate 4%: Over $10,000 (first $10,000 taxed at 0%).
- Long-term capital gains
- Capital gains are generally taxed as ordinary income at 4% above $10,000. Gain on interests in companies organized in Mississippi can be fully excluded (see below); the examples assume a company organized elsewhere, such as Delaware, and do not apply it.
- Relief that applies only in some sales
- Miss. Code §27-7-9(f)(10): no gain is recognized on selling authorized shares of financial institutions domiciled in Mississippi and of domestic (Mississippi-organized) corporations, or interests in domestic LPs and LLCs, held more than one year. The excluded gain must first be reduced by losses on qualifying transactions in the year of the gain or the two years before or after. A founder selling a Mississippi-incorporated company would typically owe no Mississippi tax on the gain; a Delaware-incorporated company would not qualify.
- Local taxes
- Mississippi has no local income taxes.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Mississippi tax | $400,000 | $1,000,000 | $2,000,000 |
| Total tax | $2,780,000 | $6,950,000 | $13,900,000 |
| Effective combined rate | 27.80% | 27.80% | 27.80% |
| Net proceeds after tax | $7,220,000 | $18,050,000 | $36,100,000 |
| Extra tax versus Texas | $400,000 | $1,000,000 | $2,000,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Mississippi tax
- $1,000,000
- Taxable gain at 4%
- $1,000,000
- Total tax
- $6,950,000
- Effective rate on the gain
- 27.80%
- Net proceeds after tax
- $18,050,000
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Florida23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
Methodology and sources
Mississippi figures are for tax year 2026. MS DOR lists 4% on taxable income over $10,000 for tax year 2026 (down from 4.4% in 2025 under HB 1 of 2025; scheduled 3.75% in 2027, falling to 3% by 2030). The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1MS DOR, Individual income tax rates
- 2Miss. Code §27-7-9 (FindLaw, current as of Jan 1, 2025)
- 3Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
You may quote and republish figures from this page with attribution and a link to the source.
Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Mississippi,” 2026, https://laurent.capital/research/seller-tax-map/mississippiLink (HTML)
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