TAX & LICENSE / STATE TAX SYSTEMS

TENNESSEE TAX

Individual Income Tax
Tennessee imposes a 6 percent tax on interest from bonds and notes and dividends from stock. The first $1,250 in taxable income received by a single filer is exempt, as is the first $2,500 in taxable income received by a joint filer. For more information, contact:

Tennessee Department of Revenue
615-253-0600
800-342-1003
http://state.tn.us/revenue/tntaxes/indinc.htm

Tax Practitioner Hotline
615-253-0700
800-397-8395
Refund Information
615-741-0443

Sales/Use Tax
Tennessee imposes a 5.5 percent tax on food and food ingredients and 7 percent on all other tangible personal property unless specifically exempted. However, local jurisdictions can raise this rate. Use taxes follow the same rates, are paid directly to the state, and apply to purchases such as Internet or catalog orders that have not been taxed. In addition, local sales taxes also are collected and those rates vary from 1.5 percent to 2.75 percent. In Shelby, Tipton, and Fayette Counties there is an additional 2.25% tax for a total sales tax in West TN of 9.25. Check with the local tax authorities for more specific tax details.

Tennessee Department of Revenue
615-253-0600
800-342-1003
http://state.tn.us/revenue

Inheritance & Estate Taxes
Inheritance and estate taxes are imposed on decedents’ estates that exceed the maximum single exemption. Inheritance tax is calculated on the net estate; Estate tax is based on the difference between the inheritance tax and the “state death tax credit” allowed on the federal estate tax return. For more information, contact:

Tennessee Department of Revenue
615-532-6438
http://www.tn.gov/revenue/

Property Tax
Property taxes are assessed and collected by the local governments, with county assessors appraising real estate for tax purposes. The county commission and city governing bodies determine local property tax rates, which are then collected by county trustees and city collecting officials. For details on a specific property or the rates in your local area, contact your municipal and county tax officials.

MISSISSIPPI TAXES

Individual Income Tax
Mississippi applies a graduated tax rate to earned income that begins with 3 percent on the first $5,000 of taxable income, 4 percent on the next $5,000, and 5 percent on taxable income over $10,000. Deductions and credit apply, depending upon your filing status and other factors. For more information, contact:

Mississippi Tax Commission
601-923-7089
Forms Ordering Line
601-923-7815
www.dor.ms.gov

Tax Refund Information
601-923-7089
24-Hour Hotline
601-923-7801

Sales/Use Taxes
All sales in Mississippi are subject to the regular retail rate of sales tax, which is 7 percent, unless exempt or taxed at a reduced rate. However, local jurisdictions can raise this rate. Use taxes follow the same rates, are paid directly to the state, and apply to purchases such as Internet or catalog orders that have not been taxed. For more information, contact:

Sales Tax Division
601-923-7015
 www.dor.ms.gov

Inheritance & Estate Taxes
Mississippi does not impose an inheritance or gift tax. The state death tax credit is replaced with a deduction for state death taxes, so no estate tax return is required for decedents dying on or after January 1, 2005.

Property Tax
Property taxes are assessed and collected by the local governments, with county assessors appraising real estate for tax purposes. The county commission and city governing bodies determine local property tax rates, which are then collected by county trustees and city collecting officials. For details on a specific property or the rates in your local area, contact your municipal and county tax officials.