Metro Jackson MS Real Estate Tax Rates

When homebuyers are thinking about purchasing Metro Jackson MS real estate, they want to know how the Mississippi tax rate compares to other states. Following are various taxes and a breakdown of how they can affect you.

Mississippi State Income Tax
Mississippi has a low graduated state income tax rate that runs from 3% to 5% of your taxable income. Whether you're an individual, married couple, a business, or one of the real estate investors in Mississippi property, the tax rate is the same.

Following is how you can figure your Mississippi state income tax rate:

• If your taxable income is $5,000 or less, your tax rate will be 3%
• For the next $5,000 (up to $10,000) your tax liability will be figured on a 4% tax rate
• All taxable income over $10,000 will be calculated on a 5% tax rate

If a married couple files a combined tax return they will each have to pay on their own individual taxable income. For example:

• Each partner will pay 3% on the first $5,000 of their taxable income
• Each will pay 4% on the second $5,000 of their taxable income
• Each will pay 5% on all of their taxable income over $10,000

Business Incentive Tax Credits
If you're an entrepreneur who is considering relocating your business or corporation to Mississippi, there is a three tiered approach to available tax credits designed for you:

• Tier 1 are developed areas
• Tier 2 are moderately developed areas
• Tier 3 are Less developed areas

If you're interested in finding out more, click here to download your copy of the Mississippi Tax Incentive Booklet.

Homestead Exemption Tax
To encourage home ownership and help qualifying individuals stay in their homes, Mississippi has enacted the Homestead Exemption Tax. If you're a homeowner who is 65 and older, or you're 100% disabled, you may be exempt from Ad Valorem taxes. The tax will be limited to the first $7,500 of assessed value of your home.

The first year you wish to apply for this special exemption, you'll need to go to your local county Tax Assessor's office and fill out an application between January 1st, but prior or on April 1st. All subsequent years, your Homestead Exemption Tax benefits will automatically be renewed unless your tax status changes.

Such changes could include any of the following:

• Change in your spousal status such as: death, marriage, divorce or separation
• Change in use of the property or ownership
• You purchased new property

You'll only be eligible for an exemption on one residence and there are various eligibility requirements. Click to learn more about eligibility requirements for Mississippi Homestead Exemption Tax.

First-Time Homebuyers
If you're thinking of purchasing Metro Jackson MS real estate, this program could be of financial help to you. The Mississippi Home Corporation (MHC) offers financial grants and educational assistance to first-time home buyers or buyers who haven't owned a home in the prior three years.

If you're thinking about purchasing a home in one of the state's targeted counties, you may well be eligible for some help. However, the home you wish to purchase must not exceed the maximum price limit and your income must meet the eligibility requirements.

Income limits must meet these criteria:

• Teachers are eligible for assistance with no income limits
• Down payment assistance program for both targeted and non-targeted counties with $198,000 price limit.
• Mortgage Revenue Bond Program - Go-Zone Limits with a loan submitted after March 1, 2008. Designed for hurricane disaster victims and a few other counties including Jackson and Pearl River.
• Mortgage Credit Certificate – different home price limits for both targeted and non-targeted counties. Loans applied for on or after June 1, 2008.
  a) Targeted counties - $289,705
  b) Non-targeted counties - $237,031

If you're ready to look for your first home, contact Paula Ricks for more details now. It could save you a bundle!

Pearl River Valley Leasehold Land
The Pearl River Valley Water Supply District owns land along the Pearl River and around the Ross Barnett Reservoir. They have the authority to lease any of this land for 20 years or more and if the lessee requests, they have the option to renew their lease every 10 years. The land must be used for the lessee's home and property taxes are to be paid by the lessee.

Sixteenth Section Public School Trust Lands
The State of Mississippi owns all Sixteenth Section Public School Trust Lands and retains title to it. However, the day to day control of Sixteenth Section Public School Trust Lands is vested in the local School Boards under the supervision of the Secretary of State. All income from Sixteenth Section Land is utilized to further the states' educational purposes. The lessees' pay all of the property taxes throughout the duration of their land lease.

Sixteenth Section Lands are leased and subject to a land classification system. The land classifications include:

• Agriculture
• Commercial
• Catfish-Farming
• Farm-Residential
• Forestry (hunting/fishing)
• Industrial
• Recreational
• Residential
• Other

If you're interested in leasing Sixteenth Section Lands for anything other than: agriculture; forest land for hunting and fishing; mineral leases, oil and gas; you'll need to send your application to lease land to the local Superintendent of Education. The Board of Education has the responsibility to approve the lease which cannot exceed 40 years. The annual rent on leased land is determined by the fair market rental of the land; this does not include any buildings or improvements to the land.

Mississippi law requires an appraisal to be performed prior to the lease being granted by the Board of Education. Land rents should reflect the current fair market value and all rents are adjusted a minimum of once every 10 years.

If you're thinking about applying for a Forest Land hunting or fishing lease, mineral lease, or an agricultural lease, these are offered by a competitive bidding process by the local Boards of Education. Maximum lengths of land leases are:

1. Forest Land hunting / fishing leases are for 15 years, but most school districts limit this type of land lease to a term of three to five years for the best interests of the school districts.
2. Agricultural leases will vary: Ten years for rice and pasture leases; five years for other agricultural uses. December 31st of the final year of the lease is when all agricultural land leases expire.

No matter what the land classification, leased land cannot be sold or swapped, only leased/rented. All Sixteenth Section Lands may be leased for the following reasons:

• Exploration, development, mining and production of gas, oil and minerals
• This includes all metals and compounds of metals
• Coal, Lignite (which is brown or rosebud coal)
• Sulphur, salt, sand, gravel, fill dirt or clay dirt

As to property taxes, if the school district doesn't lease the land, there is no tax paid; if the land is leased it is subject to assessment and payment of Ad Valorem taxes. The lessee is responsible to pay all property taxes; if the lessee should fail to pay all of their taxes, the lease may be cancelled.

Metro Jackson MS Homes for Sale
Are you considering purchasing one of the Metro Jackson MS homes for sale? Click to: Search the Metro Jackson MS MLS to find the perfect home for your needs.

Are you a first-time homebuyer or wanting to move up to a larger or more luxurious home? Maybe you're one of the real estate investors in Mississippi looking for a good investment. As one of the best Metro Jackson MS real estate agents, Paula Ricks has the knowledge and experience to help you find the right property. She'll also assist you in obtaining the best financing option for your budget. Contact Paula Ricks today!