What is the Mississippi PTET rate?

Mississippi's PTET rate is 5.00% flat. MS DOR 2025 PTE Instructions (Form 84-100, published Nov 2025): 'For tax year 2025, the income tax rates are: 0% on the first $5,000... 4% on the next $5,000... 5% on taxable income in excess of $10,000.' Top marginal rate is 5% per the most-recent DOR-published instructions. 2026 reduction to 4% per HB 531/HB 1 scheduled but not yet in DOR instructions.

Is the Mississippi owner credit refundable?

Mississippi's PTET owner credit is carry-forward-only. Per § 27-7-26: 'any excess credit may be carried forward as an overpayment or refunded' — language suggests refundable in practice; verify.

Does Mississippi PTET affect composite-return filing?

Stacks. See the composite-vs-PTET page for the full matrix.

Mississippi · MS

Mississippi Pass-Through Entity Tax (PTET)

Mississippi's PTET regime is one of the 37+ state workarounds to the federal SALT cap (IRC §164(b)(6)). The election is annual, statute-pinned below, and interacts with composite filing and §199A QBI in state-specific ways.

Statute: Miss. Code Ann. § 27-7-26 (Electing Pass-Through Entity)
State DOR portal: https://www.dor.ms.gov/node/15647
Election deadline: Election made by submitting Form 84-381 to MS DOR at any time during the tax year (or revoking by same form). PTE files Form 84-105 with 'Electing Pass-Through Entity' box checked.
Election form: Form 84-381 (Pass-Through Entity Election Form); Form 84-105 (PTE Tax Return)
Entity-level rate: 5.00% — MS DOR 2025 PTE Instructions (Form 84-100, published Nov 2025): 'For tax year 2025, the income tax rates are: 0% on the first $5,000... 4% on the next $5,000... 5% on taxable income in excess of $10,000.' Top marginal rate is 5% per the most-recent DOR-published instructions. 2026 reduction to 4% per HB 531/HB 1 scheduled but not yet in DOR instructions.
Eligible entities: s-corp, partnership, llc-as-s, llc-as-partnership
Owner credit: carry-forward-only — Per § 27-7-26: 'any excess credit may be carried forward as an overpayment or refunded' — language suggests refundable in practice; verify.
Composite interaction: stacks
§199A QBI base reduction: Yes — Reduces federal flow-through income (Notice 2020-75).
Last verified: 2026-05-12

Source: dor.ms.gov + Updated EPTE FAQ + 2025 PTE Instructions (84-100). MS allows election REVOCATION mid-cycle — unusual flexibility.

IRC §164(b)(6)Notice 2020-75 IRC §199A

Reference computation

For a Mississippi pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Mississippi — reference example

QBI allocation·MS rate= Entity-level tax

$500,000×5%=$25,000

Miss. Code Ann. § 27-7-26 (Electing Pass-Through Entity)

Entity tax·Federal bracket= Federal deduction (gross)

$25,000×37%=$9,250

At a 37% federal bracket, the entity-level deduction saves $9,250 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $1,850), aggregate benefit is approximately $7,400.

IRS Notice 2020-75

Run the picker pre-filled for Mississippi

Election walkthrough

Verify eligibility. Mississippi accepts: s-corp, partnership, llc-as-s, llc-as-partnership.
Check the deadline. Election made by submitting Form 84-381 to MS DOR at any time during the tax year (or revoking by same form). PTE files Form 84-105 with 'Electing Pass-Through Entity' box checked. Election can also be REVOKED via Form 84-381 — Mississippi is one of few states allowing revocation.
Compute the entity-level tax. Apply the 5.00% rate to qualified net income.
Pay and file. Use Form 84-381 (Pass-Through Entity Election Form); Form 84-105 (PTE Tax Return). Quarterly estimates may be required.
Owners claim the state credit. carry-forward-only credit on the personal state return.
Verify composite interaction. Composite interaction: stacks. See composite vs PTET.
Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Mississippi PTET — common questions

Annual deadline reminder

State PTET law revises annually. Mississippi's data was last verified on 2026-05-12. Re-confirm with the state DOR primary source before electing or filing. Last full-site review: 2026-05-12.

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Reference computation

For a Mississippi pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Mississippi — reference example

QBI allocation·MS rate= Entity-level tax

$500,000×5%=$25,000

Miss. Code Ann. § 27-7-26 (Electing Pass-Through Entity)

Entity tax·Federal bracket= Federal deduction (gross)

$25,000×37%=$9,250

At a 37% federal bracket, the entity-level deduction saves $9,250 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $1,850), aggregate benefit is approximately $7,400.

IRS Notice 2020-75

Election walkthrough

Verify eligibility. Mississippi accepts: s-corp, partnership, llc-as-s, llc-as-partnership.

Check the deadline. Election made by submitting Form 84-381 to MS DOR at any time during the tax year (or revoking by same form). PTE files Form 84-105 with 'Electing Pass-Through Entity' box checked. Election can also be REVOKED via Form 84-381 — Mississippi is one of few states allowing revocation.

Compute the entity-level tax. Apply the 5.00% rate to qualified net income.

Pay and file. Use Form 84-381 (Pass-Through Entity Election Form); Form 84-105 (PTE Tax Return). Quarterly estimates may be required.

Owners claim the state credit. carry-forward-only credit on the personal state return.

Verify composite interaction. Composite interaction: stacks. See composite vs PTET.

Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Mississippi PTET — common questions