Updated October 4, 2026. Quick answer: Yes, at the same rate as other income. The Department of Revenue’s instructions say “Mississippi does not have different tax rates for capital gains.” For 2025 the rate is 0% on the first $10,000 of taxable income and 4.4% above it.
Selling your home? How the state taxes the profit, from its own tax documents: Does Mississippi tax the profit from selling your home?.
The same question for dividends and interest: does Mississippi tax dividends and interest.
How Mississippi treats capital gains
| Item | What the documents say |
|---|---|
| Treatment | Taxed as ordinary income; “All income is taxed at the same rate.” |
| Rate, 2025 | 0% on the first $10,000 of taxable income; 4.4% on taxable income in excess of $10,000 |
| Computation | “Mississippi generally follows IRS rules concerning computation of capital gains and losses.” |
A $50,000 long-term gain
If the first $10,000 is already used by other income, a $50,000 gain is taxed at 4.4%: computed as $50,000 x 4.4% = $2,200.
If the gain were the only taxable income, the first $10,000 is taxed at 0%: computed as ($50,000 minus $10,000) x 4.4% = $1,760.
What changes in 2026
The 2025 booklet prints House Bill 1 reductions to 3.75% for tax year 2027, 3.5% for 2028 and 3.25% for 2029. It prints no rate for tax year 2026.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.
Related: whether Mississippi taxes pensions, how Mississippi taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for investment gains
If your portfolio is $250,000 or more, this connects you (free, with no obligation to hire anyone) with 2 to 3 vetted advisors.
Before you start, what actually happens. The matching service is run by WiserAdvisor, an independent advisor-matching company. It opens on their site, asks for your ZIP code and a few questions, and matches you with 2 to 3 vetted advisors. It is free to you.
WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Clear Money Guide may earn a referral payment for a qualifying completed form, whether or not you ever hire anyone.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor plans your sales
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment through this service, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- 2025 Form 80-100-25-1-1-000 Resident, Non-Resident and Part-Year Resident Individual Income Tax Instructions (Rev. 12/25): https://www.dor.ms.gov/sites/default/files/tax-forms/individual/80100251%202.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.