The facts on Mississippi’s Tax Climate

  • 5%
    Individual Income Tax
    3 brackets
  • 5%
    Corporate Income Tax
    3 brackets
  • 7%
    Sales and Excise Taxes
  • $793
    Property Taxes

Mississippi’s Individual Income Tax System 
Mississippi’s personal income tax system consists of three separate brackets with a top rate of 5% kicking in at an income level of $10,000. That top rate ranks 32nd highest among states levying an individual income tax. Mississippi’s 2010 state-level individual income tax collections were $456 per person, which ranked 39th

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

Tax Freedom Day Arrives on April 1 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 2012, Mississippi taxpayers work until April 1 (ranked 48th nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Louisiana, April 1 (ranked 48th nationally); Arkansas, April 11 (ranked 31st nationally); Tennessee, March 31 (ranked 50th nationally); and Alabama, April 6 (ranked 43rd nationally).

Mississippi’s State and Local Tax Burden Below National Average

Mississippi’s 2009 state and local tax burden of 8.7% of income is below the national average of 9.8%. Mississippi’s tax burden has decreased overall from 9.3% (34th nationally) in 1977 to 8.7% (36th nationally) in 2009. Taxpayers in Mississippi pay $2,678 per capita in state and local taxes.
Mississippi’s State and Local Tax Burdens, 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 2013 Business Tax Climate Index Ranks 17th

Mississippi ranks 17th 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 (32nd), Arkansas (33rd), Tennessee (15th), and Alabama (21st).

50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)