If you serve in the military or have served, Mississippi can be one of the friendliest states for a disabled veteran's wallet. The state fully exempts the home of a totally disabled veteran from property tax, and it does not tax military retirement pay. Mississippi draws many military families after a PCS, which is short for Permanent Change of Station, the official military move from one duty station to another, with Keesler Air Force Base in Biloxi, Columbus Air Force Base, Naval Air Station Meridian, and Camp Shelby near Hattiesburg. This guide explains the main rules in plain language and points you to the state's own sources. Tax law changes, so confirm the current rules before you file.
How Mississippi Helps Disabled Veterans With Property Taxes
Mississippi's strongest property tax break for veterans is a full exemption. As the Mississippi Veterans Affairs Board explains, a veteran with a service-connected total disability who was honorably discharged is exempt from all ad valorem taxes on the assessed value of a homestead. Ad valorem simply means a tax based on the value of the property, and a homestead is your owner-occupied home and the land around it. This benefit comes from Mississippi Code sections 27-33-67 and 27-33-75.
For a fully disabled veteran, this is about as strong as a property tax break gets. The U.S. Department of Veterans Affairs, known as the VA, is the federal agency that rates service-connected disabilities. When the VA rates a veteran's disability as total, meaning 100 percent and, in most cases, permanent, the ordinary property tax on the home is removed rather than just reduced.
Who Qualifies
The exemption is for an honorably discharged veteran with a service-connected total disability. You document the disability with a letter from the VA that states you are 100 percent disabled due to service-connected causes and gives the effective date of that rating. Because the rule turns on a total, service-connected rating, a partial rating does not qualify for this full exemption, though you may still claim the regular homestead exemption available to all homeowners.
Surviving Spouses
The benefit can carry to a surviving spouse. Mississippi extends the full ad valorem exemption to the unremarried surviving spouse of a qualifying totally disabled veteran, under conditions you can confirm with your county and the state. Because the details depend on your situation, confirm them before you count on the benefit.
How It Works With the Homestead Exemption
Property tax in Mississippi is assessed and collected at the county level, and you apply for any homestead exemption with your county tax assessor. As the Mississippi Department of Revenue explains, a regular homeowner under 65 who is not disabled receives a homestead credit of up to $300 against the tax on the home. Homeowners who are 65 or older or totally disabled get a larger break, with the first $12,500 of assessed value exempt from all ad valorem taxes as of 2026.
A veteran with a service-connected total disability gets the strongest benefit of all: a full exemption from ordinary property tax on the homestead, not just a credit or a capped amount. If you are weighing where to settle, our guide to the military bases in Mississippi can help you picture the local cost of owning a home near Keesler Air Force Base and the Gulf Coast.
Military Pay and Mississippi State Income Tax
Mississippi does have a state income tax, but it shields the pay many military families rely on. As the Mississippi Department of Revenue's individual income tax guidance notes, military retirement pay is exempt from Mississippi income tax. Combat-zone hazardous duty pay is exempt as well, and the first $15,000 of pay for service in the National Guard or reserve forces is excluded from income.
Regular active-duty pay is treated more typically. A Mississippi resident generally owes state income tax on active-duty base pay, because the state taxes its residents on their income, while a service member who keeps another home state and is only stationed in Mississippi is not taxed by Mississippi on military pay. VA disability compensation is not part of your federal income, so Mississippi does not tax it either. Because rates and rules can change, confirm the current details with the Department of Revenue before you file.
A Note for Military Spouses: MSRRA
If you are a military spouse, the Military Spouse Residency Relief Act, known as MSRRA, may matter to you. MSRRA is a federal law that lets a military spouse keep a home state for tax and voting purposes even after moving on military orders. You do not automatically become a Mississippi resident just because your service member got orders here.
Under the related federal rules, a service member, the spouse, or both may choose the service member's home state, the spouse's home state, or the service member's permanent duty station for residency. Because that choice affects both states' taxes, confirm yours before you file. For the property tax exemption in this guide, what usually matters most is that the home is the disabled veteran's primary residence.
