The Tax Foundation

Tax Data

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 April 7 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 2008, Mississippi taxpayers had to work until April 7 to pay their total tax bill, ranking the state 49th nationally. That's 16 days earlier than national Tax Freedom Day (April 23). The Tax Freedom Days of neighboring states are: Louisiana, April 13 (ranked 38th nationally); Arkansas, April 17 (ranked 30th nationally); Tennessee, April 11th (ranked 44th nationally); and Alabama, April 9 (ranked 46th nationally).

Tax Freedom Day has been projected using the most up-to-date economic and budget projections from official government agencies. However, Tax Foundation estimates of average state and local tax rates for 2008 will not be released until later this spring as we await more up-to-date data from various government agencies.
Full study of Tax Freedom Day, nationwide and in each state

Mississippi's State/Local Tax Burden Below National Average in 2007
Estimated at 10.5% of income, Mississippi's state/local tax burden percentage ranks 29th highest, below the national average of 11.0%. Taxpayers in Mississippi pay $3,103 per capita for state and local taxes, and per capita state income is $29,582.
Mississippi's State-Local Tax Burden, 1970-Present

Mississippi's 2008 Business Tax Climate Ranks 18th
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. Neighboring states ranked as follows: Louisiana (32nd), Arkansas (35th), Tennessee (16th) and Alabama (21st).
50-State Comparison of Business Tax Climates (data only)
2008 State Business Tax Climate Index, Fifth Edition (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 41st highest among states levying an individual income tax. Mississippi's 2005 individual income tax collections were $404 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 41st highest nationally. In 2006, state-level corporate tax collections (excluding local taxes) were $108.91 per capita, which ranked 38th nationally.
50-State Table of Corporate Income Tax Rates, 2000-2008
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006

Mississippi Levies Second-Highest Sales Tax; Gasoline and Cigarette Taxes among the Lowest in the Nation
Mississippi levies a 7% general sales or use tax on consumers, the second-highest state-level sales tax rate in the nation. State and local governments combined collected approximately $1,236 per capita in sales taxes in 2005, which ranks 24th highest nationally. Mississippi's gasoline tax stands at 18.8 cents per gallon, ranking 9th lowest nationally. Mississippi's cigarette tax stands at 18 cents per pack of twenty, which ranks 3rd lowest 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 and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005

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 $1,819,515,000 in property taxes in fiscal year 2004, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Mississippi collected $40,241,000 in property taxes during FY 2004, making its combined state/local property taxes $1,859,756,000, which is $641 per capita and ranked 40th 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

Tax Data from The Tax Foundation