The state of Mississippi imposes a franchise tax on corporations for the privilege of doing business in the state. Franchise tax is due annually as long as the corporation remains incorporated, domesticated, or continues to do business in Mississippi. Franchise tax is also imposed on an LLC electing to be taxed as a corporation, as well as an S corporation at the entity level.
The franchise tax is not imposed on a taxpayer filing as a sole proprietor, nor on a partnership.
Franchise tax is computed at the end of the corporation's tax year and is calculated at the year's annual rate per $1,000 (or fraction thereof) of the greater of the value of the capital employed in excess of $100,000 or the assessed property values in the state. The minimum franchise tax due is $25.00.
Beginning with tax year 2018, the franchise tax rate is being reduced annually by $0.25 until it is completely phased out after tax year 2027 as follows:
| Tax Year | Rate |
| 2018 | $2.50 |
| 2019 | $2.25 |
| 2020 | $2.00 |
| 2021 | $1.75 |
| 2022 | $1.50 |
| 2023 | $1.25 |
| 2024 | $1.00 |
| 2025 | $0.75 |
| 2026 | $0.50 |
| 2027 | $0.25 |
Additional Information: