Mississippi Guide for Canadians

Quick Facts

State Income Tax	Phasing out: 4.70% flat rate (2025), reducing to 3% by 2030, then to 0%
Sales Tax	7% state + local (average 7.06% total)
Driver's License Grace Period	30 days for residents
Residency Requirement for Tax	Domiciled in Mississippi for 183+ days
Vehicle Registration Deadline	30 days for residents
REAL ID Deadline	May 7, 2025 for domestic flights

First 90 Days Checklist

Week 1-2: Essential Documents

• Gather required documents for driver's license
• Open US bank account
• Set up temporary mailing address

Week 3-4: Official Registration

• Apply for Mississippi driver's license (within 30 days)
• Register vehicle if brought from Canada (within 30 days)
• Register to vote

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish Mississippi ties
• Consider Mississippi vehicle insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Original valid Canadian passport
• Proof of Social Security Number (if applicable)
• Two proofs of Mississippi residential address

Testing Requirements:

• Written test required for Canadian citizens
• Road test required - Mississippi does not recognize foreign licenses
• Vision screening required

Important Notes:

• 30-day limit to get Mississippi license after residency
• REAL ID required by May 7, 2025 for air travel
• Both written and road tests required for Canadians

Vehicle Registration

• Register within 30 days of establishing residency
• Safety inspection required
• Emissions testing not required statewide
• Mississippi insurance required for registration

Tax & Residency Considerations

Mississippi State Tax Revolution

• **Income tax elimination** Currently 4.70% flat rate, phasing out completely
• **Tax reduction timeline** 3% by 2030, then gradually to 0%
• **Retirement income exempt** from state taxation
• **No inheritance tax**
• **Low property taxes** (0.70% effective rate)
• **Moderate sales tax** 7% state rate (7.06% average total)

Establishing Mississippi Tax Residency

Mississippi residency is based on domicile and presence:

• Domiciled in Mississippi for 183+ days during tax year
• Intent to make Mississippi your permanent home
• Physical presence supporting domicile intent

Documentation to Establish Residency

• Mississippi driver's license and voter registration
• Bank accounts and utility bills in Mississippi
• Employment or business activities in Mississippi
• Professional licenses, club memberships

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Mississippi has limited public health insurance for non-citizens
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Quality medical facilities in Jackson, Gulfport, Tupelo

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Research pharmacy options and discount programs

Special Considerations for Snowbirds

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons
• Maintain Canadian insurance & banking relationships
• Mississippi domicile-based residency requires careful planning

Property Considerations

• Very affordable property values throughout state
• Homestead exemption available (varies by county)
• Impact on Canada's principal residence exemption
• Consider hurricane insurance for coastal areas

Climate & Lifestyle Benefits

• Subtropical climate with mild winters
• Rich cultural heritage and hospitality
• Mississippi River and Gulf Coast attractions
• Extremely low cost of living

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Track intent and domicile establishment carefully
• No Enhanced Driver's License available in Mississippi

Tax Advantage Timing

Mississippi's historic income tax elimination makes it increasingly attractive for tax planning. The state offers exceptional value with phasing out income taxes, very affordable housing, and Southern charm.

Weather Considerations

Mississippi experiences hurricanes, severe thunderstorms, and flooding. Comprehensive insurance coverage and emergency preparedness are essential, especially in coastal areas.

Key Contacts & Resources