The differences in purchasing power can be large and they have significant implications for the relative impact of economic and tax policies across the United States.
Mississippi Tax Rates, Collections, and Burdens
How does Mississippi’s tax code compare? Mississippi has a flat 5.00 percent individual income tax. Mississippi also has a 4.00 to 5.00 percent corporate income tax rate. Mississippi has a 7.00 percent state sales tax rate, a max local sales tax rate of 1.00 percent, and an average combined state and local sales tax rate of 7.07 percent. Mississippi’s tax system ranks 30th overall on our 2023 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Mississippi is no exception. The first step towards understanding Mississippi’s tax code is knowing the basics. How does Mississippi collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?
State Tax Data
Average Local Sales Tax Rate0.07%See Full Study
State and Local General Sales Tax Collections per Capita$1288Rank: 22
State Gasoline Tax Rate (cents per gallon)18.79¢Rank: 49
State Cigarette Tax Rate (dollars per 20-pack)$0.68Rank: 39
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