Mississippi Homestead Exemption, an Important Tax Savings

Real Estate Agent with Front Gate Real Estate Broker 11085

If you are a long-time resident of Mississippi, you are probably familiar with our homestead laws. But if you are a new resident, it's important to know Mississippi is a Homestead Exemption state. This means  the state offers a reduction in property taxes to qualified residents on their primary home.

The exemption isn't automatic; you must file for this reduction between January 2 to March 31 the first year of your home purchase. You must meet certain criteria to be eligible, i.e., be a resident of the state and file a MS tax return, you must live in the home as of January 1 the year you file, plus your vehicle(s) require MS license plates. Take a copy of your warranty deed when you file for this reduction at the Assessor's office of the county in which you reside.

You only need to file once unless there is a change in marital status, change of ownership, divorce, or death of a spouse. The assessor's office will send a postcard to your residence each year to confirm residency. If you move for any reason, your homestead status will be revoked, and your tax rate will increase. You can, however, carry your status to the next home you purchase, as long as your next home is within the state. The exemption is only allowed on your primary residence and cannot be filed on multiple properties. Rental property or a second home doesn't qualify.

Additional exemptions apply once you reach age 65 or become 100% disabled.  Other reductions are available if you are a 100% disabled veteran.

Occasionally I come across homeowners who were unaware of this exemption, thus fail to take advantage of the savings. This happens occasionally when buyers purchase direct from builders, weren't reminded to file, or simply forget.

It's important to capitalize on this opportunity if you are eligible. It will be an attractive incentive to the future buyer of your home, and it will save you thousands of tax dollars in the meantime.

Feel free to reach out if you have questions about this process.

Comments (7)

Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs

Lot of great tax ideas for Mississippi. I live in New Orleans area. Have a great day.

Jan 28, 2022 10:02 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Pat with taxes being as high as they are, we need to take advantage of everything available to reduce them.

Jan 28, 2022 12:07 PM
Patricia Feager, MBA, CRS, GRI,MRP
Selling Homes Changing Lives

Pat Starnes-Front Gate Realty - Glad to know Mississippi has Homestead Exemptions. Texas does too and I wouldn't want to live in any state that doesn't! You are definitely  someone I would refer buyers to in your area. 

Jan 28, 2022 01:22 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

The Mississippi homestead exemption sounds like it can be a valuable tool for many in your state.

Jan 29, 2022 04:26 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Pat - good (and quite valuable) information for Mississippi new homeowners who may not know or have made changes since originally purchasing their property.  Life changes.   

Jan 29, 2022 04:49 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Pat I need to check into my state how it compares about taxes, we are always complaining that they are rising, now you inspired me to do some research and potentially a future post, Endre

Feb 14, 2022 10:34 PM
Roy Kelley
Retired - Gaithersburg, MD

This is good information to share.

Have a great day and a very productive week.

Mar 30, 2022 04:42 AM