Assuming that "S corps are exempt from Mississippi income tax" means no entity-level tax at all. Mississippi FRANCHISE TAX is a separate capital-based tax that S corporations still owe, with a $25 minimum, computed on capital in excess of $100,000 and reported on Form 84-110 with the 84-105. The second trap is the nonresident shareholder agreement: if you do not obtain a signed Form 84-380 from every nonresident shareholder, the S CORPORATION itself becomes liable for tax on that shareholder's share of Mississippi income at the highest marginal rate.
Recognized automaticallyPTET available
S-corp election in Mississippi
In short
S corps are exempt from Mississippi income tax by statute but DO pay Mississippi franchise tax on capital, with a $25 minimum. Composite and electing-PTE returns pay tax at the entity level.
Does Mississippi recognize the federal S election?
Mississippi automatically recognizes your federal S election, and the statute is explicit about it: Miss. Code Ann. § 27-7-5(2) provides that "An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section." There is no separate Mississippi S-corp election. Your S corp still files Form 84-105, the Mississippi Pass-Through Entity Tax Return, and still pays FRANCHISE tax, which is a separate capital-based tax that S corps do not escape.
Tax the entity still owes
S CORP INCOME TAX EXEMPTION: Miss. Code Ann. § 27-7-5(2), as amended by House Bill 1 (2025 Regular Session, the "Build Up Mississippi Act"): "An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section." INDIVIDUAL RATE SCHEDULE — CONFIRMED FROM THE SIGNED BILL TEXT on the Mississippi Legislature's own billstatus system. § 27-7-5 as amended provides: no tax on the first $5,000 of taxable income (calendar year 2022 and thereafter); no tax on income over $5,000 up to and including $10,000 (calendar year 2023 and all calendar years thereafter); and on all taxable income in excess of $10,000, the rate is 4.7% for calendar year 2024, 4.4% for calendar year 2025, FOUR PERCENT (4%) FOR CALENDAR YEAR 2026, 3.75% for 2027, 3.5% for 2028, 3.25% for 2029, and 3% for 2030 and thereafter (with a further revenue-triggered reduction mechanism beginning in 2031). FRANCHISE TAX: the 2025 Mississippi Pass-Through Entity booklet (Form 84-100) states at the Line 2 instruction: "For tax year 2025, the franchise tax rate is $0.75 per $1,000 of capital in excess of $100,000 (minimum tax of $25)." NOTE this is $0.75, not the $0.50 previously reported — see caveats. Franchise tax is reported on Form 84-110 and applies to S CORPORATIONS ONLY (not partnerships). RETURN DUE DATE: "The total tax due on the return must be paid in full no later than the 15th day of the 3rd month after the end of the tax year (S corporations)" — March 15 for calendar-year filers. ESTIMATED PAYMENTS: if the current-year Mississippi income tax liability exceeds $200, Form 83-305 (S corporations) must be completed and attached when filing a composite or electing pass-through entity return. NONRESIDENT SHAREHOLDER AGREEMENTS: an S corp must obtain Form 84-380 from each nonresident shareholder, retained in the corporation's permanent tax files and NOT sent with the return. If the S corp fails to obtain the agreement, or the nonresident shareholder fails to file and pay, the S corporation must itself pay tax on that shareholder's pro rata share of Mississippi income. LATE PAYMENT: interest 1/2 of 1% per month; failure-to-pay penalty 1/2% per month, capped at 25%.
Registering for payroll
An S corp paying wages must register for Mississippi income tax withholding with the Mississippi Department of Revenue and for unemployment insurance with the Mississippi Department of Employment Security. Direct the user to dor.ms.gov and mdes.ms.gov.
Annual filings
Form 84-105, Mississippi Pass-Through Entity Tax Return, with the Form 84-100 instruction booklet — due the 15th day of the third month after the end of the tax year (March 15 for calendar-year filers). Form 84-110, capital computation for franchise tax (S corporations only). Form 84-122, net taxable income schedule. Form 84-132, Schedule K-1 to each shareholder. Form 84-380 nonresident shareholder agreements, retained by the corporation and not filed. Form 83-305 estimated tax if income tax liability exceeds $200. Form 84-401 and 84-161 for credits. SEPARATELY, an annual report is filed with the Mississippi Secretary of State.
Pass-through entity tax
Yes — Mississippi has an electing pass-through entity tax. Owners claim credit for tax paid on their behalf by filing Form 84-161, Tax Credit For Income Tax Paid By Electing Pass-Through Entity, with the electing entity's K-1 attached. HOWEVER, THE RATE IS GENUINELY AMBIGUOUS FOR 2026 AND MUST NOT BE PUBLISHED WITHOUT DOR CONFIRMATION — see caveats. Do not display a Mississippi PTET rate to customers yet.
The mistake owners make most often in Mississippi
Filing your federal Form 2553
Businesses operating in Mississippi send Form 2553 to the IRS Ogden service center — fax 855-214-7520. Full address and filing checklist for Mississippi.
Frequently asked questions
Does Mississippi require a separate S-corporation election?
No. Mississippi does not require a separate state election. Mississippi automatically recognizes your federal S election, and the statute is explicit about it: Miss. Code Ann. § 27-7-5(2) provides that "An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section." There is no…
What tax does an S corporation pay in Mississippi?
S corps are exempt from Mississippi income tax by statute but DO pay Mississippi franchise tax on capital, with a $25 minimum. Composite and electing-PTE returns pay tax at the entity level.
Where do I file Form 2553 from Mississippi?
With the IRS Ogden service center. Fax 855-214-7520, or mail to Department of the Treasury, Internal Revenue Service, Ogden, UT 84201.
What is the most common S-corp mistake in Mississippi?
Assuming that "S corps are exempt from Mississippi income tax" means no entity-level tax at all. Mississippi FRANCHISE TAX is a separate capital-based tax that S corporations still owe, with a $25 minimum, computed on capital in excess of $100,000 and reported on Form 84-110 with the 84-105. The second trap is the nonresident shareholder agreement: if you do not obtain a signed Form 84-380 from every nonresident shareholder, the S CORPORATION itself becomes liable for tax on that shareholder's share of Mississippi income at the highest marginal rate.
Compare with other states: Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey.
Sources
File your Form 2553 correctly
Scorply completes your federal election and includes a Mississippi guide in your packet, so you know exactly what else you owe here.
Start my Form 2553Some details here are less firmly sourced
Mississippi publishes some of this information in places our checks could not reach directly, so a few of the finer details below — filing fees, exact due dates — are drawn from secondary sources. The recognition rule and the entity-level tax are solid. Confirm the specifics with the state before you rely on a date or a dollar figure.
Researched from official Mississippi sources and verified July 30, 2026. State tax rules change. This is general information, not tax advice — confirm with the state or a CPA before you rely on it.