Mississippi Estimated Tax Payments: How and When to Pay

Mississippi’s income tax system operates on a “pay-as-you-go” basis. For many individuals who receive a regular paycheck, this is handled automatically through employer withholding. However, when you earn income that isn’t subject to this type of withholding, the responsibility for remitting tax payments to the state throughout the year falls to you. This is accomplished through estimated tax payments, which ensure that income is taxed as it is earned and prevents a large tax bill when you file your annual return.

Determining Your Requirement to Pay

The primary factor in determining your need to make estimated tax payments in Mississippi is the amount of tax you expect to owe. If you anticipate that your total state income tax liability for the year will be $200 or more after accounting for all withholdings and credits, you are required to make these payments. This requirement commonly affects individuals with specific types of income that are not subject to employer withholding. This includes earnings from self-employment, such as freelance work or operating a small business, and extends to other revenue streams like interest, dividend income, rental income, and capital gains.

Calculating Your Estimated Tax Payments

To avoid potential penalties, taxpayers have two “safe harbor” rules for calculating their required annual payment. The first option is to pay at least 80% of the income tax you expect to owe for the current tax year. This method requires a projection of your income and deductions for the entire year. A more straightforward approach is to pay 100% of the Mississippi income tax shown on your return for the previous year, assuming you filed a return for a full 12-month period. For example, if your 2024 tax liability was $4,000, you could pay that same amount in estimated taxes for 2025. The total annual payment is divided into four equal installments.

For taxpayers whose income is not received evenly, such as a seasonal business owner, the annualized income method may be an option. This approach allows you to adjust your payment amounts for each quarter to better reflect when the income was actually earned. This method is more complex and requires careful calculation to avoid an underpayment penalty.

Required Forms and Payment Deadlines

Making estimated tax payments requires using Form 80-106, Mississippi Estimated Tax for Individuals. This form acts as a voucher that accompanies each of your payments. On this form, you will provide identifying information and the amount calculated for that quarter’s payment. The official Form 80-106 can be downloaded from the Mississippi Department of Revenue’s website. After determining your total estimated tax for the year, you will remit payments according to a set quarterly schedule with the following due dates:

• April 15
• June 15
• September 15
• January 15 of the following year

How to Submit Your Payments

Once you have filled out the Form 80-106 voucher, you have two primary methods for submitting the payment. The traditional method is to mail your payment, making your check or money order payable to the Mississippi Department of Revenue. Write your Social Security number and “Estimated Tax” on the check and mail it with the voucher to the address specified in the form’s instructions. Alternatively, you can make payments electronically through the state’s online portal, the Taxpayer Access Point (TAP), which allows for direct payment from a bank account or by credit card and provides a confirmation receipt.

Underpayment Penalties

Failing to pay enough tax by the established quarterly deadlines can result in financial consequences. If you do not meet the safe harbor requirements discussed previously, you may be subject to an underpayment penalty. This penalty is calculated at a rate of one-half of one percent (0.5%) per month on the amount you underpaid for the duration that the payment was late. The penalty is assessed for each quarter that an underpayment occurs. For instance, if you underpay your first quarter installment but catch up with a large payment later, you may still owe a penalty for the period the first quarter’s funds were delinquent. The total penalty is calculated using Form 80-320, Underpayment of Estimated Tax by Individuals, which is filed with your annual Mississippi income tax return.