Updated September 4, 2026. Quick answer: Mississippi’s corporation franchise tax reaches an S-corp because it is still legally a corporation, a minimum of $25 and 75 cents per $1,000 of capital over $100,000, while an LLC or partnership owes none of it. The tax is being phased out and disappears entirely on January 1, 2028.
Does this state require its own election
No separate Mississippi filing exists to obtain S-corp status; the federal election controls. Mississippi defines an S-corp purely by reference to the federal election; no separate state filing is required.
“’S corporation’ means a corporation for which a valid election under Section 1362(a) of the code is in effect.”
Miss. Code Ann. § 27-8-3
What it costs at the entity level
Mississippi’s franchise tax reaches every corporation, including S-corps, based on capital value; an LLC or partnership taxed as a partnership is not subject to it at all. The tax is on a legislated phase-down and is scheduled for full repeal January 1, 2028.
| What Mississippi charges | Figure |
|---|---|
| Rate | $0.75 per $1,000, or fraction, of capital value in excess of $100,000 (tax years beginning on or after January 1, 2025; down from a historical $2.50 per $1,000) |
| Minimum | $25.00 per accounting period |
“Seventy-five Cents (75¢) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00) … In no case shall the franchise tax due for the accounting period be less than Twenty-five Dollars ($25.00).”
Miss. Code Ann. § 27-13-5
The comparison against a plain LLC
A Mississippi LLC electing partnership taxation owes no franchise tax at all. An S-corp, because it remains a corporation in form, owes at least $25 a year and more as its capital grows, though that gap is shrinking every year on the way to zero in 2028.
What this does not model
This page does not model the pre-2025 franchise tax rate schedule; only the current, post-phase-down rate is shown.
No federal tax modelling is repeated here; see the federal S-corp election calculator for the payroll-tax and QBI mechanics this page assumes but does not recompute. No personal Mississippi income tax on the pass-through income itself is modelled either.
Sources
Every figure on this page is read from the text quoted above, fetched directly from the state’s own site or code, as read on September 4, 2026.
| What it establishes | Source |
|---|---|
| Whether Mississippi requires its own S-corp election | Miss. Code Ann. § 27-8-3 |
| What Mississippi charges an S-corp at the entity level | Miss. Code Ann. § 27-13-5 |
General consumer information, not financial, tax or legal advice. State rules are as published by the cited source on September 4, 2026 and change; your own facts govern, and an S-corporation election is a decision to take with a tax professional who has seen your books.