Mississippi

The Facts on Mississippi's Tax Climate

Here are some basic facts on Mississippi's tax system and how it compares to other states:

Tax Freedom Day Arrives on March 26 in Mississippi, First in the Nation
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2011, Mississippi taxpayers work until March 26 to pay their total tax bill, ranking the state 50th nationally. That's 17 days earlier than national Tax Freedom Day (April 12). The Tax Freedom Days of neighboring states are: Louisiana, March 30 (ranked 47th nationally); Arkansas, April 3 (ranked 35th nationally); Tennessee, March 27 (ranked 49th nationally); and Alabama, April 2 (ranked 43rd nationally).
Full study of Tax Freedom Day, nationwide and in each state

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 2012 Business Tax Climate 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. Neighboring states rank as follows: Louisiana (32nd), Arkansas (31st), Tennessee (14th) and Alabama (20th).
50-State Comparison of Business Tax Climates (data only)
50-State Comparison of Business Tax Climates (full study)

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 2008 state-level individual income tax collections were $529 per person, which ranked 40th highest 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 tax structure consists of three brackets and a top rate of 5% kicking in at a corporate income level of $10,000. Among states levying corporate income taxes, Mississippi's rate ranks 40th highest nationally. In 2008, state-level corporate tax collections (excluding local taxes) were $131 per capita, which ranked 27th nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household
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, slightly above the national median of 5.85%. In 2007 combined state and local general and selective sales tax collections were $1,438 per person, which ranks 19th highest nationally. Mississippi's gasoline tax stands at 18.8 cents per gallon, ranking 42nd highest nationally. Mississippi's cigarette tax stands at 68 cents per pack of twenty, which ranks 36th highest in the nation. The sales tax was adopted in 1930, the gasoline tax in 1922 and the cigarette tax in 1932.
50-state table of sales, cigarette, gas, beer, wine, and spirits tax rates.
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita

Mississippi Property Taxes: Comparatively Low
Mississippi is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Mississippi's localities collected $ 700.52 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Mississippi collected $15.40 per capita during FY 2006, making its combined state/local property taxes $ 715.93 per capita, which ranked 41st nationally..
State property tax collections per capita by state

Federal Tax Burdens and Expenditures: Mississippi is a Beneficiary State
Mississippi taxpayers receive more federal funding per dollar of federal taxes paid compared to the average state. Per dollar of federal tax collected in 2004, Mississippi citizens received approximately $2.02 in the way of federal spending. This ranks the state 2nd highest nationally, and represents a increase from 1995, when Mississippi received $1.54 per dollar of taxes in federal spending and was 3rd highest nationally. Neighboring states and the amount of federal spending they received per dollar of federal taxes paid were: Louisiana ($1.78), Arkansas ($1.41), Tennessee ($1.27), and Alabama ($1.66).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state

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