Mississippi Homestead Exemption and Special Assessment Credit

Quick Facts

• What it does: Mississippi’s homestead exemption reduces the property tax bill on your primary residence. The basic credit lowers county taxes, while the special assessment credit fully eliminates taxes on the first $7,500 of assessed value (equal to $75,000 in market value) for seniors and disabled homeowners.
• Why it matters: Property taxes fund schools and local services, but rising assessments can strain fixed-income households. Mississippi’s exemption structure ensures homeowners receive predictable relief and protects older adults from being taxed out of their homes.
• Who can benefit: Any Mississippi homeowner who occupies the property as a primary residence on January 1 can claim the basic exemption. Homeowners age 65 or older or certified totally disabled qualify for additional relief that often zeroes out their tax bill.
• How to apply: File at your county tax assessor’s office between January 1 and April 1. First-time applicants must appear in person. Once approved, the exemption renews automatically unless you move, change ownership, or experience a status change.

Program Overview

Mississippi property taxes are calculated by multiplying the assessed value (10% of market value for residential property) by the millage rate. The homestead exemption subtracts a credit from county and city taxes, effectively lowering the tax due. There are three main classes:

• Regular Homestead (Type 1): Available to all owner-occupants. Provides up to a $300 credit against county taxes and up to $75 against municipal taxes.
• Special Homestead (Type 2): For homeowners age 65+ or totally disabled with homes assessed at $7,500 or less. Eliminates all ad valorem taxes on the homestead. If the assessment exceeds $7,500, the owner pays tax only on the excess.
• Service-Connected Disabled Veteran (Type 4): Provides full exemption regardless of value for honorably discharged veterans with 100% service-connected disability and their surviving spouses.

Understanding assessed value is crucial. A home valued at $120,000 has an assessed value of $12,000. The special credit covers up to $7,500 of assessed value, meaning the owner pays tax on the remaining $4,500 if millage rates apply. Strategic assessment appeals can therefore increase the value of the exemption.

Eligibility Requirements

1. Ownership and occupancy: You must own the property (or hold an equitable title) and occupy it as your primary residence on January 1. If property is held in a trust, the beneficiary must file. Mobile homes on leased land also qualify if properly registered.
2. Residency: You must be a Mississippi resident. Active-duty military stationed outside the state may qualify if Mississippi remains their legal domicile.
3. Age or disability (for special credit): Provide proof of age (driver’s license, birth certificate) or disability certification (Social Security disability award letter, VA disability letter, or physician statement). Disability must be total and permanent.
4. Application window: File between January 1 and April 1 of the year for which you seek the exemption. Late filings are generally not accepted unless approved by the board of supervisors for good cause.
5. Documentation: Present deeds, closing statements, Social Security numbers for all owners, car tag receipt numbers, and evidence of prior residency if you moved from another state.

Benefit Details

• Credit amounts: The regular homestead credit is calculated as $300 or the actual county tax, whichever is less. Municipal taxes receive a credit up to $75. School taxes are included. The special credit covers up to $7,500 of assessed value, eliminating taxes for most modest homes.
• Automatic renewal: Once approved, the exemption carries forward. However, you must notify the assessor if you move, change marital status, add owners, or experience an increase in assessed value. Seniors moving into assisted living may need to requalify if the homestead is no longer their primary residence.
• Multiple properties: You may claim only one homestead exemption statewide. If you own multiple homes, choose the one used as your permanent residence.
• Co-owners and spouses: Married couples living together should file jointly. If spouses own separate homes, only one homestead exemption is allowed between them unless legally separated.
• Assessment changes: Reappraisals occur every four years. If the assessed value climbs above $7,500, seniors receiving the special credit may owe tax on the excess. Filing an appeal or requesting a physical inspection can ensure assessments remain accurate.

Application Process

1. Gather documentation: Bring the recorded deed, settlement statement, Social Security cards for all owners, driver’s licenses, vehicle tag receipt numbers, and proof of age or disability if applicable. For mobile homes, include the mobile home registration certificate.
2. Visit the county tax assessor: First-time applicants must apply in person at the county courthouse. Inform the clerk if you qualify for the special credit or veteran exemption.
3. Complete the homestead application: The assessor will provide Form 76-142 or a county-specific form. Verify that names, property description, and parcel number match the deed. Sign the form in the presence of the clerk.
4. Provide supporting evidence: Submit copies of disability letters or veteran discharge papers if claiming special categories. The assessor will make copies and return originals.
5. Receive confirmation: Counties mail approval letters in late spring. Review for accuracy and file with your records. If denied, you have 30 days to appeal to the county board of supervisors.
6. Monitor annual tax bills: Exemptions appear on the October tax bill. Ensure the credit is applied correctly; if not, contact the assessor immediately.

Documentation Checklist

• Recorded warranty deed or closing disclosure.
• Social Security numbers for all owners and spouses.
• Mississippi driver license or state ID showing the property address.
• Vehicle tag receipt numbers for all vehicles garaged at the property.
• Proof of age (65+) or disability award letter.
• DD-214 and VA disability letter (for veteran exemption).
• Mobile home registration (if applicable).
• Prior homestead cancellation letter if moving from another Mississippi county.

Strategies to Maximize Savings

Verify assessed value accuracy

Compare your assessed value to similar homes in your neighborhood. Request the assessor’s property record card to review square footage, condition, and improvements. If data is incorrect, file an informal review before formal appeals close (usually July). Lowering assessed value can ensure the special credit covers the entire home.

Coordinate with senior freeze programs

Some Mississippi counties offer additional senior assessment freezes or millage reductions. Ask your assessor whether local ordinances provide extra relief. Combining state and county programs can significantly lower the tax burden.

Appeal millage rate changes

Attend county board meetings when millage rates are set. Provide testimony about the impact on seniors and disabled homeowners. While the homestead credit shields the first $7,500, higher millage increases taxes on any value above that threshold.

Track disability reviews

If you qualify based on disability, maintain copies of annual disability verification. Social Security or VA agencies may conduct reviews; promptly forward updated letters to the assessor to avoid losing the special credit.

Plan for property transfers

If you plan to transfer the home to heirs, consult an attorney about retaining the homestead status. For example, life estate deeds allow seniors to keep the exemption while naming children as remainder beneficiaries. After death, heirs must reapply in their own names.

Troubleshooting and Appeals

• Missed deadline: If you missed the April 1 deadline due to hospitalization or natural disaster, write a letter to the board of supervisors requesting a late filing. Include documentation. Approval is discretionary.
• Assessment exceeds $7,500: File an appeal with the board of supervisors. Bring comparable sales, appraisals, or photographs showing property condition. If the board denies relief, you can appeal to circuit court.
• Ownership changes: If you add a spouse or remove a co-owner, notify the assessor immediately. Failure to do so can lead to homestead removal and back taxes.
• Moving to new home: File an application for the new property and a cancellation for the old one. You cannot carry the exemption to the new home automatically.
• Mobile home issues: Ensure the mobile home is assessed on the land. If you rent the land, confirm that the homestead file reflects the correct legal description. Misclassification can delay credits.

Example Scenarios

• Retired couple in Hinds County: Alice and Robert, both 67, own a home assessed at $6,800. They file for the special credit with their Social Security award letters. Their tax bill drops to zero, allowing them to redirect funds to medical expenses.
• Disabled homeowner in DeSoto County: Marcus, age 45, receives Social Security Disability Insurance. His home is assessed at $9,000. After appealing, the assessor adjusts the value to $7,300, fully covering it under the special credit. He now pays only the solid waste fee.
• Veteran in Harrison County: Sheila, a 100% disabled veteran, files her DD-214 and VA rating letter. She receives a full exemption regardless of her home’s $200,000 market value. Her surviving spouse will continue the exemption after Sheila’s death as long as she does not remarry.

Resources

• Mississippi Department of Revenue Property Tax Bureau: dor.ms.gov/property for statewide forms and FAQs.
• County Tax Assessor Offices: Each county website lists office hours, contact numbers, and downloadable applications.
• Area Agencies on Aging: Provide counseling on property tax relief and budgeting for seniors.
• Mississippi Center for Justice: Offers legal assistance for homeowners facing improper tax assessments or foreclosure.
• Extension Service Housing Counselors: Mississippi State University Extension offices host workshops on property tax appeals and estate planning.

Frequently Asked Questions

Do I need to reapply each year? No, the exemption renews automatically unless you move, change ownership, or experience a change in status. However, you must notify the assessor of any changes.

Can I claim the exemption on a second home? No. Only your primary residence qualifies. Vacation homes, rental properties, and investment properties are excluded.

What if I co-own the property with a nonresident? If at least one owner lives in the home full time, you can still claim the exemption. Provide proof that the resident owner occupies the property.

Does the exemption affect school funding? School districts receive state reimbursements to offset revenue lost to the homestead credit, so your relief does not directly reduce classroom funding.

How long does approval take? Most counties process applications within a few weeks. Check your online tax account to confirm the exemption before bills are issued.

By understanding assessed value mechanics, keeping documentation current, and appealing inaccurate valuations, Mississippi homeowners can leverage the homestead exemption to stabilize housing costs well into retirement.