Mississippi LLC Tax Filing Requirements (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

By default a Mississippi LLC is a pass-through entity: a single-member LLC is disregarded and a multi-member LLC files a partnership return, with members paying Mississippi income tax on their share. Mississippi's individual income tax rate is scheduled to reach a flat 4% in 2026, and the state also collects a 7% sales tax.

Default Federal Tax Treatment

An LLC is not a federal tax class of its own. By default, the IRS treats a single-member Mississippi LLC as a disregarded entity — its income is reported on the owner's Schedule C — and a multi-member LLC as a partnership that files Form 1065 and issues Schedule K-1s to members. Either can instead elect corporate or S-corporation treatment by filing the appropriate IRS form.

This federal classification flows into Mississippi: the state generally follows the federal characterization, so the LLC's income is taxed at the member level, not the entity level (absent a corporate election). See the how to form an LLC hub and S-corporation vs LLC for how the choice affects taxes.

Mississippi Income Tax on LLC Members

Mississippi taxes the income that passes through to LLC members on their individual returns. The state has been lowering and flattening its individual income tax; under enacted law the rate is scheduled to reach a flat 4% for 2026, with further reductions planned in later years. There is a zero-rate bracket on an initial amount of income, so the flat rate applies above that threshold.

Members report their share of LLC income on the Mississippi individual income tax return. Because pass-through income is not withheld, members may need to make estimated payments. Confirm the current-year rate and thresholds with the Department of Revenue, as the phase-down schedule can change. See Mississippi self-employment tax for the federal SE tax that also applies.

Pass-Through Entity Return

A multi-member Mississippi LLC taxed as a partnership files a Mississippi Pass-Through Entity return (Form 84-105) with the Department of Revenue, reporting the LLC's income and each member's distributive share. A single-member disregarded LLC generally does not file a separate state entity return; its income appears on the owner's individual return.

Mississippi also offers an elective pass-through entity tax, letting eligible LLCs and S corporations pay state tax at the entity level (a workaround for the federal SALT deduction cap). Whether to elect it depends on your members' situations. See Mississippi LLC cost and the business tax overview.

Sales and Use Tax

If your LLC sells taxable goods or certain services in Mississippi, you must register for and collect sales tax. Mississippi's general state sales tax rate is 7%, among the higher statewide rates, with some reduced rates for specific categories. You register through the Department of Revenue's Taxpayer Access Point (TAP) and file returns on the assigned schedule.

Use tax applies to taxable purchases where sales tax was not collected. Collecting and remitting sales tax is separate from income tax and has its own deadlines. Keep the accounts distinct to avoid missed filings. See Mississippi business license for related registrations.

Franchise Tax Phase-Out

Mississippi historically imposed a corporate franchise tax on the value of capital used in the state, but the legislature has been phasing it out, with full repeal scheduled by 2028. The franchise tax applies to corporations, including LLCs that elect corporate taxation — not to default pass-through LLCs. As the rate declines each year, the burden shrinks toward zero.

If your LLC has elected C-corporation status, confirm the current franchise tax rate for the year. Default and S-corp LLCs are generally not subject to it. This phase-out is one reason Mississippi has become friendlier to small businesses in recent years.

EIN, Registration, and Deadlines

A multi-member LLC needs a free federal EIN to file its partnership return and register for state tax accounts; a single-member LLC with employees also needs one. Register your tax accounts with the Mississippi Department of Revenue through TAP, and register the entity itself with the Mississippi Secretary of State when you form it.

Federal partnership returns are generally due March 15, and individual returns (where pass-through income lands) in April, aligning with Mississippi deadlines. Missing filings triggers penalties and interest. See how to get an EIN in Mississippi and keep your registered agent current.

Registration Steps and Tax Planning

Start by registering the right accounts. Use the Mississippi Department of Revenue's Taxpayer Access Point (TAP) to set up sales tax, withholding, and any other accounts your LLC needs, and register the entity itself with the Secretary of State when you form it. Your free EIN ties these accounts together.

Match your filings to your classification. A single-member LLC reports on the owner's Schedule C and individual Mississippi return; a multi-member LLC files the partnership federal return and the Mississippi pass-through return, issuing K-1s. If you elect corporate or S-corporation status, the filing set changes accordingly. Keeping classification and filings consistent avoids notices.

Take advantage of the falling rate. Mississippi's move toward a flat 4% individual rate for 2026, with further reductions planned, lowers the state cost of pass-through income over time. Plan estimated payments around the current-year rate, and confirm the figure with the Department of Revenue since the phase-down schedule is set by statute and can be revised.

Do not overlook sales and use tax. If you sell taxable goods or services, the 7% state rate applies, and use tax covers untaxed purchases. Sales tax has its own returns and deadlines separate from income tax, and missed sales tax filings are a frequent source of penalties. See Mississippi business license for related registrations.

Consider the elective pass-through entity tax. Mississippi lets eligible LLCs and S corporations pay state tax at the entity level, which can help some owners with the federal SALT deduction cap. Whether it benefits you depends on your members' circumstances, so model it with a tax professional. Our business tax overview explains the concept.

Keep your federal classification and Mississippi filings in lockstep. Whether your LLC is disregarded, a partnership, or has elected corporate or S-corporation status determines which returns you file at both levels. A mismatch — for example, filing a partnership return while the IRS shows a different classification — generates notices, so confirm your status before each filing season.

Track the individual rate schedule as it steps down. Mississippi's move toward a flat 4% for 2026 and lower rates thereafter changes the state cost of pass-through income year to year. Base your estimated payments on the current-year figure from the Department of Revenue, and revisit them if the legislature adjusts the phase-down.

Treat sales and use tax as a separate discipline. If you sell taxable goods or services, register in TAP, collect the 7% state rate, and file on your assigned schedule, remembering that use tax covers untaxed purchases. Sales tax deadlines are independent of income tax, and missed sales tax returns are one of the most common triggers for penalties.

Evaluate the elective pass-through entity tax with a professional. Paying Mississippi tax at the entity level can help some owners work around the federal SALT deduction cap, but the benefit depends on each member's situation. Because the analysis is individualized, model it before electing, and coordinate it with your overall business tax plan. See Mississippi LLC cost for related figures.

Frequently Asked Questions

How is a Mississippi LLC taxed?

By default it is a pass-through: a single-member LLC is disregarded and a multi-member LLC files a partnership return. Members pay Mississippi income tax on their share unless the LLC elects corporate or S-corp status.

What is the Mississippi income tax rate for 2026?

Under enacted law, Mississippi's individual income tax is scheduled to reach a flat 4% in 2026, applied above a zero-rate threshold, with further cuts planned. Confirm the current rate with the Department of Revenue.

Does a Mississippi LLC pay franchise tax?

Only if it elects corporate taxation. Mississippi's corporate franchise tax is being phased out with full repeal scheduled by 2028. Default pass-through LLCs do not pay it.

Does a single-member Mississippi LLC file a state return?

Generally no separate entity return. Its income is reported on the owner's individual Mississippi return. A multi-member LLC files the pass-through entity return (Form 84-105).

What is the Mississippi sales tax rate?

The general state sales tax rate is 7%. LLCs selling taxable goods or services register through the Department of Revenue's Taxpayer Access Point and file sales tax returns on the assigned schedule.

Related

• Business tax overview
• How to form an LLC in Mississippi
• S-corp election in Mississippi
• Mississippi self-employment tax
• Mississippi LLC cost
• How to get an EIN

Sources

1. Mississippi Dept. of Revenue — Individual Income Tax (rate schedule; flat 4% in 2026).
2. Mississippi Dept. of Revenue — Pass-Through Entities (Form 84-105; elective PTE tax).
3. Mississippi Dept. of Revenue — Corporate and Franchise Tax (franchise tax phase-out).
4. Mississippi Dept. of Revenue — Sales Tax (7% general rate; TAP registration).
5. Mississippi Secretary of State — Business Services (LLC formation and records).
6. IRS — Limited Liability Company (LLC) (federal default classification).
7. IRS — Single Member Limited Liability Companies (disregarded-entity default).
8. IRS — About Form 1065 (multi-member LLC partnership return).
9. IRS — Get an Employer Identification Number (EIN is free; issued by the IRS).
10. IRS — S Corporations (federal S-corporation rules).
11. IRS — Business Structures (entity types overview).
12. Cornell LII — 26 CFR § 301.7701-3 (entity classification election).
13. IRS — About Schedule C (Form 1040) (report sole-proprietor profit or loss).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the IRS, the Mississippi Department of Revenue, and the Mississippi Secretary of State before acting.