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:
- 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.
- 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! |