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Mississippi land is taxed ad valorem — by value. The county appraises the land's true (market) value, multiplies it by an assessment ratio (15% for most land — the Class II rate), then applies the local millage rate set by the county, schools, and any city. As of 2026 the typical Mississippi property tax bill is about $1,221 a year — among the lowest in the nation. Working farmland and timberland are taxed on use value, not market value, which can cut the bill sharply.
"Ad valorem" is Latin for "according to value," and that's the whole idea: your tax tracks what the land is worth, not how many acres you own. Mississippi runs it in three steps, set out in Miss. Code § 27-35-50 and the county's tax rolls.
A worked example. Say a 20-acre tract has a true value of $60,000. As Class II land, the assessed value is 15% of that — $9,000. If the local rate is 100 mills, the tax is $9,000 × 100 ÷ 1,000 = $900 for the year. Two things move that number: the land's value and the millage rate where it sits. Nothing else.
Plug in a value and a local rate to see the assessed value and a rough yearly bill. Estimate only — your county sets the real numbers.
A mill is one-tenth of one cent — $1 of tax for every $1,000 of assessed value. So 100 mills on $9,000 of assessed value is $900. Nobody hands you a single "Mississippi rate," because the rate is built from several local levies stacked together:
Because the mix differs by county — and even by where you are within a county — the same $60,000 tract can carry a different bill ten miles down the road. Rates are reset each year when local governments adopt their budgets, so a "tax increase" almost always traces back to a change in your value, a change in the millage, or both. For a feel for what tracts are worth before you run the math, see what land costs per acre in Mississippi.
Mississippi's constitution sorts every property into one of five classes, each with its own assessment ratio. The class decides how much of your land's value is actually taxed — so it's the single biggest lever on the bill. Tap through them:
A single-family home you live in as your primary residence. The lowest ratio in the state — and the only class that qualifies for the homestead exemption.
Raw acreage, recreational and hunting tracts, timberland, a second lot, rental and commercial property. If you're buying land you won't live on, this is your class: 15% of true value, no homestead exemption.
Furniture, fixtures, machinery, equipment, and inventory a business uses. Not land — listed here so you can see where the 15% land ratio sits.
Property of pipelines, electric and telephone companies, railroads, and the like — assessed by the state. The highest real-property ratio.
Cars, trucks, and mobile homes. Worth knowing if you're putting a mobile home on your land — the home is taxed separately from the dirt under it.
The takeaway for a buyer: a $60,000 home is assessed at $6,000 (10%), but $60,000 of raw land is assessed at $9,000 (15%). The dirt carries a higher ratio and no homestead break — which is exactly why the use-value rules below matter so much for working land.
Almost always, no — and this trips up a lot of first-time buyers. Mississippi's homestead exemption is for the home you live in. The regular exemption knocks the tax on the first $7,500 of assessed value off an owner-occupied residence (up to $300 off the bill), and homeowners 65 or older or totally disabled are exempt from tax on the first $75,000 of true value on their home.
Land you're holding, hunting, or planning to build on later isn't your residence, so it doesn't qualify. It sits in Class II at the full 15% with no exemption. That's not a loophole to chase — it's just how raw land is taxed. The real relief for working land isn't homestead; it's use value.
This is the part that saves real money. When land is used for commercial agriculture — row crops, timber, livestock, poultry, or aquaculture — Mississippi appraises it on its use value (what it earns as working land) rather than its market value. For a tract that would sell high but earns modestly, the gap is large.
Illustration at 100 mills. Forestland use values are set by soil class and run far below market — often just a few hundred dollars an acre. Your county uses the Department of Revenue's annual use-value schedule.
How it works under the hood: the Department of Revenue publishes a yearly schedule of per-acre use values built from an income approach — net income per acre, capitalized at a rate of at least 10%. Forestland is sorted into five soil productivity classes (A through E), and each is valued separately. The use value is then assessed at the same 15% Class II ratio and multiplied by your millage. A few details worth knowing:
If you're buying rural acreage to hold or hunt, ask the county assessor whether it's already on use value before you close — and what keeping it there requires. A tract that's been actively managed for timber can carry a tax bill a fraction of what its sticker price suggests. Rules and schedules change, so confirm the current year with the assessor or a tax professional.
Unpaid land taxes don't quietly pile up — the county sells them. Here's the path, set out in Miss. Code §§ 27-41 and 27-45:
The reassuring part: county officials send repeated certified notices before the window closes, and in practice land is rarely lost this way. The unreassuring part: the interest clock is real, so don't let a small bill ride. If you've fallen behind, the county tax collector and chancery clerk are the offices to call.
Counties mail bills in the late fall, and taxes on property assessed the prior year are due on or before February 1 (if that's a weekend or holiday, the next business day). You pay the county tax collector — in person, by mail, or through an online portal in many counties. The titled owner on the tax roll is the one responsible.
Buying with seller financing changes the day-to-day but not the rule: the contract spells out who covers the taxes while you pay the parcel off, and Debrosland always closes through a real estate attorney or title company so that's nailed down in writing. If that's the route you're weighing, here's how owner-financed land in Mississippi works start to finish.
"Property tax is the one cost that follows land every single year you own it. On raw Mississippi acreage it's usually small — and if the tract's working as timber or pasture, use value can make it almost an afterthought. Know the number before you buy, not after."
It depends on the land's value and the local millage rate, but Mississippi has some of the lowest property taxes in the country — the typical bill statewide is around $1,221 a year as of 2026. Raw land is assessed at 15% of its true value (Class II), and that assessed value is multiplied by the local rate. A $60,000 tract at 100 mills runs about $900 a year; working timberland on use value can be a small fraction of that.
Most land is Class II property, assessed at 15% of its true (market) value. An owner-occupied home is Class I at 10%, and public utility property and motor vehicles are 30%. Raw, recreational, hunting, and timber land you don't live on falls under the 15% Class II ratio.
Generally no. The homestead exemption applies to the home you live in as your primary residence. Land you're holding, hunting, or planning to build on later isn't a residence, so it's taxed at the full 15% Class II ratio with no homestead exemption. The relief that does apply to working land is use-value assessment, not homestead.
The land has to be in genuine commercial agricultural use — row crops, timber, livestock, poultry, or aquaculture. You typically file an Application for Agricultural Use Value with your county tax assessor, who verifies the use and applies the Department of Revenue's annual use-value schedule. A hunting lease or CRP enrollment doesn't disqualify the land. Use value is then assessed at the same 15% ratio, usually producing a far lower bill than market value.
The county auctions the overdue taxes at an annual tax sale — most often the last Monday in August. A buyer pays your back taxes and receives a lien. You remain the owner and have two years to redeem by paying the back taxes plus 1.5% interest per month, a 5% penalty, and fees. If you don't redeem within two years, the lien matures into a tax deed and the property transfers. In practice, land is rarely lost this way, but the interest adds up.
Bills are mailed in late fall, and taxes on property assessed the prior year are due on or before February 1. If February 1 falls on a weekend or holiday, the deadline moves to the next business day. After that, a penalty of roughly ½% per month accrues until the unpaid taxes are sold at the August tax sale. You pay the county tax collector.
It's set by the purchase contract. On owner-financed land the agreement spells out whether the buyer pays the county directly or reimburses the seller while paying the parcel off. Either way, the deal should close through a real estate attorney or title company so responsibility for taxes, the deed, and recording is clear in writing.
Know the carrying cost before you buy — and on the flip side, if you're tired of paying taxes on land you no longer want, we'll make it simple to move on.
New to buying land? Start with our Free Land Buying Checklist, or see what's available on our Mississippi land page.
Questions? Call (970) 829-8580 or email howdy@debrosland.com.
Mississippi Dept. of Revenue — Property Tax FAQ & Local Property Appraisal · Miss. Code Ann. § 27-35-50 (true value & agricultural use value) · §§ 27-41 / 27-45 (tax sales & redemption) · § 27-25-27 (timber exemption) · Mississippi State University Extension — Understanding Mississippi Property Taxes · county tax collector & chancery clerk offices. Figures as of 2026; rates and schedules vary by county and change yearly.
Debrosland is a land company — not a law firm, tax advisor, or financial advisor. Everything on our blog is general information to help you get your bearings, not legal, tax, or financial advice for your situation. For that, talk to a qualified professional — and run any closing through a real estate attorney or title company.
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