Last week, the Tax Foundation released a paper titled, “Reexamining the Tax Exemption of Municipal Bond Interest,” which argued that lawmakers should consider reforming the current tax treatment of municipal bond...
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 individual income tax system consists of three brackets with a top rate of 5%. The top rate ranks 29th highest among states levying an individual income tax. Mississippi's state and local tax collections per person were $587 in 2013, which ranked 40th highest nationally.
50-State Table of Individual Income Tax Rates
Mississippi's Corporate Income Tax System
Mississippi's corporate income tax system consists of three brackets with a top rate of 5%. The top rate ranks 39th highest among states levying a corporate income tax. Mississippi's state and local corporate income tax collections per person were $139 in 2013 which ranked 21st highest nationally.
50-State Table of Corporate Income Tax Rates
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 0.1%. Mississippi's state and local governments collect $1,067 per person in general sales taxes and $498 per person in excise taxes, for a combined figure of $1,566, which ranks 23rd highest nationally. Mississippi's gasoline tax stands at 18.79 cents per gallon, 45th highest nationally, while its cigarette tax stands at $0.68, 37th highest nationally.
50-State Table of State and Local Sales Tax Rates
Mississippi Property Tax Collections Relatively Low
Mississippi's state and local governments collected approximately $899 per person in property taxes in 2013, which ranks 40th nationally.
Tax Freedom Day Arrives on April 5th in Mississippi
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Mississippi taxpayers have to work until April 5th (1st earliest nationally) to pay their total tax bill.
Mississippi's State and Local Tax Burden Ranks 41st
Mississippi's 2012 tax burden of 8.6% ranks 41st highest in the nation, and is below the national average of 9.9%. Mississippi's taxpayers pay $2742 per capita in state and local taxes.
Mississippi's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Mississippi's 2016 Business Tax Climate Index Ranks 20th
Mississippi ranks 20th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (13th), individual income taxes (21st), sales taxes (28th), unemployment insurance taxes (8th), and taxes on property (35th), including residential and commercial property.
State Business Tax Climate Index (full study)
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Related State Articles
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