Tax Basics
This is the deadline to file your federal income tax return each year unless an extension is requested.
What is April 15th?
These programs provide financial assistance to retired workers and healthcare for seniors.
What are Social Security and Medicare?
The U.S. has this type of income tax system, meaning the more you earn, the higher percentage you pay
What is a progressive tax system?
Mississippi does NOT charge this type of tax that some other states require residents to pay on personal wealth.
What is an estate tax or inheritance tax?
If you own a home, you pay this type of tax, which is used to fund schools and local services.
What is property tax?
This type of tax is deducted from your paycheck and includes Social Security and Medicare.
What is payroll tax?
Federal tax dollars help fund this large department responsible for national defense.
What is the Department of Defense (the military)?
This tax is paid on profits from selling stocks, real estate, or other investments.
What is capital gains tax?
Mississippi’s state sales tax rate is this percentage, one of the highest in the Southeast.
What is 7%?
Some counties and cities charge this extra percentage in addition to state sales tax.
What is local sales tax?
This form is given to employees by their employers each year and reports their earnings and taxes withheld.
What is a W-2?
State taxes help pay for these two key public services that protect communities and property.
What are police and fire departments?
If you work as a freelancer or run a small business, you must pay these taxes to cover Social Security and Medicare.
What are self-employment taxes?
Unlike many states, Mississippi does not tax income on these types of retirement payments.
What are Social Security and retirement benefits?
This tax is charged on gasoline and helps maintain highways and roads.
What is the gas tax?
If you don’t file your taxes on time and owe money, you may have to pay these two types of penalties.
What are failure-to-file and failure-to-pay penalties?
Local tax dollars help maintain these essential structures that we use daily to drive to work or school.
What are roads and bridges?
This is the name of the standard IRS form most Americans use to file their taxes.
What is Form 1040?
This tax is paid when you renew your car tag and is based on the value of your vehicle.
What is ad valorem tax?
People who rent instead of own a home still indirectly pay property taxes through this type of monthly payment.
What is rent?
This type of tax credit directly reduces the amount of tax you owe, dollar for dollar
What is a tax credit?.
Public schools receive most of their funding from this type of local tax.
What is property tax?
If you don’t pay enough in taxes throughout the year, you may be required to make these payments every three months.
What are estimated tax payments?
Some Mississippi cities, like Tupelo and Biloxi, charge this extra tax on restaurants and hotels to promote tourism.
What is the tourism tax?
Local governments collect this type of tax when someone buys or sells land, houses, or commercial property.
What is real estate transfer tax?