Tax Foundation Forum: Making Sense of Profit Shifting has reached its midpoint. In this halftime report, we provide a synopsis of the first nine of the 18 interviews in the series. This two-part review summarizes the key...
The facts on Mississippi’s Tax Climate
5%Individual Income TaxTop rate
5%Corporate Income TaxTop rate
7%Sales and Excise Taxes
Mississippi's Individual Income Tax System
Mississippi's personal income tax system consists of three brackets and a top rate of 5%. That rate ranks 20th lowest among states levying an individual income tax. Mississippi's state and local income tax collections per person were $503 in 2012 which ranked 11th lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Mississippi's Corporate Income Tax System
Mississippi's corporate income tax system consists of three brackets and a top rate of 5%. That rate ranks 12th lowest among states levying a corporate income tax. Mississippi's state and local corporate income tax collections per person were $133 in 2012 which ranked 22nd highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Mississippi Sales and Excise Taxes
Mississippi levies a 7% general sales or use tax on consumers, which is above the national median of 5.95%. The average local sales tax rate is an additional 0.07%. Mississippi's state and local governments collect $1030 per person in general sales taxes and $479 per person in excise taxes, for a combined figure of $1509, which ranks 21st highest nationally. Mississippi's gasoline tax stands at 18.8¢ (6th lowest nationally), while its cigarette tax stands at $0.68 (15th lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Mississippi Property Tax Collections Relatively Low
Mississippi's state and local governments collected approximately $870 per person in property taxes in 2012, which ranks 10th lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 2nd in Mississippi
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Mississippi taxpayers worked until April 2nd (2nd earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Louisiana, March 30th (ranked earliest nationally); Arkansas, April 12th (ranked 17th earliest nationally); Tennessee, April 5th (ranked 4th earliest nationally); and Alabama, April 7th (ranked 5th earliest nationally).
Mississippi's State and Local Tax Burden Below National Average
Mississippi's 2011 tax burden of 8.4% ranks 11th lowest out of 50 states, and is below the national average of 9.8%. Mississippi's taxpayers pay $2620 per capita in state and local taxes.
Mississippi's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Mississippi's 2015 Business Tax Climate Index Ranks 18
Mississippi ranks 18th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Louisiana, 35th, Arkansas, 39th, Tennessee, 15th, and Alabama, 28th.
State Business Tax Climate Index (full study)
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