Corporations (and entities classified as corporations for federal tax purposes) pay Mississippi franchise tax annually for the privilege of doing business in the state. Franchise tax is reported on the combined corporate income and franchise tax return (Form 83-105), so it is typically filed by an accountant.
Mississippi has an FAQ on the subject on the Department of Revenue's website.
Corporation income and franchise tax returns are due on or before the 15th day of the 4th month following the close of the taxable year (April 15 for calendar year filers).
Corporations with Mississippi income tax liability greater than $200 are required to make estimated quarterly income tax payments throughout the year.
Franchise tax is computed at a rate of the value of the capital employed, or the assessed property values in this state, whichever is greater. The rate changes from year to year.
The rate is being phased out over the next several years:
The minimum franchise tax due is $25.00.
Note: Each corporation in a combined group must calculate and remit its franchise tax separately, even if combining for income tax purposes.
Mississippi imposes penalties for late or missed franchise tax filings, including:
Corporations must continue filing returns until officially dissolved or withdrawn through the Secretary of State. Failing to keep up with tax and Secretary of State filing obligations can affect your status with the state.
While Discern does not file Mississippi franchise taxes directly (these require an accountant due to the detailed financial information involved), Discern can:
Ready to simplify your multi-state compliance? Book a demo to see how Discern streamlines compliance management across all states you operate.
.png){kind=small}