Quick answer: a flat 4% for 2026 above a $10,000 exemption, taxed exactly as ordinary income — and a rate that's legislated to keep dropping. See the full cost picture in the Mississippi probate real estate sale calculator.
A rate already on its way down
A legislated path toward zero
After 2030, additional reductions are set to trigger based on state revenue growth, with supporters of the law describing a realistic path to eliminating Mississippi's income tax entirely — which would make Mississippi the first state in history to get rid of a state-levied income tax this way.
No discount for holding the asset longer
Unlike federal law's separate, lower long-term capital gains brackets, Mississippi simply folds the gain into the same flat rate as wages and every other form of taxable income — there's no special treatment for how long the property was held.
No estate or inheritance tax layered on top
Mississippi's estate tax was repealed in 2014, and the state has no separate inheritance tax, so this income tax on the gain is the only state-level tax question the sale itself raises.
A local probate attorney can review your estate — many offer a free consultation.
The flat 4% rate applies identically whether the sale closes in any of Mississippi's 82 counties.