Mississippi: Who Pays? 7th Edition
Mississippi
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All figures and charts show 2024 tax law in Mississippi, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly all (99.6 percent) state and local tax revenue collected in Mississippi. These figures depict Mississippi’s income tax rate at 4.7 percent. That rate is set to reduce to 4.0 percent by 2026 and the franchise tax is set to reduce to zero by 2028. As seen in Appendix E, this will decrease the top fifth’s overall tax rate by 0.5 percentage points and cause the state to move 3 spots in the ITEP Inequality Index rankings, from 19th to 16th most regressive.
State and local tax shares of family income
| Top 20% | |||||||
| Income Group | Lowest 20% | Second 20% | Middle 20% | Fourth 20% | Next 15% | Next 4% | Top 1% |
| Income Range | Less than $19,300 | $19,300 to $31,500 | $31,500 to $56,000 | $56,000 to $104,800 | $104,800 to $182,500 | $182,500 to $362,300 | Over $362,300 |
| Average Income in Group | $11,700 | $24,300 | $43,000 | $76,000 | $133,800 | $244,600 | $619,600 |
| Sales & Excise Taxes | 8.4% | 7.4% | 6.7% | 5.3% | 4.1% | 3.1% | 2% |
| General Sales–Individuals | 4.6% | 4.2% | 4% | 3.1% | 2.3% | 1.6% | 0.8% |
| Other Sales & Excise–Ind | 2.2% | 1.6% | 1.3% | 1% | 0.7% | 0.5% | 0.3% |
| Sales & Excise–Business | 1.6% | 1.6% | 1.5% | 1.3% | 1.1% | 1% | 0.9% |
| Property Taxes | 3.8% | 2.8% | 2.7% | 2.2% | 2.3% | 2.2% | 1.8% |
| Home, Rent, Car–Individuals | 3.2% | 2.1% | 2.1% | 1.7% | 1.8% | 1.5% | 0.9% |
| Other Property Taxes | 0.6% | 0.7% | 0.6% | 0.5% | 0.6% | 0.7% | 0.9% |
| Income Taxes | 0.1% | 0.5% | 1.5% | 2.5% | 3.1% | 2.9% | 3.1% |
| Personal Income Taxes | 0% | 0.4% | 1.4% | 2.4% | 3% | 2.8% | 3% |
| Corporate Income Taxes | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.2% |
| Other Taxes | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% |
| TOTAL TAXES | 12.4% | 10.8% | 11% | 10.1% | 9.6% | 8.2% | 6.9% |
| Individual figures may not sum to totals due to rounding. | |||||||
ITEP Tax Inequality Index
ITEP’s Tax Inequality Index measures the effects of each state’s tax system on income inequality. According to this measure, Mississippi has the 19th most regressive state and local tax system in the country. Income disparities are larger in Mississippi after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the report methodology for additional detail.)
Tax features driving the data in Mississippi
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Levies a business franchise tax (though it is being phased out)
Levies personal and corporate income taxes
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No refundable income tax credits to offset sales, excise, and property taxes
Does not use combined reporting as part of its corporate income tax
All retirement income is exempted from the personal income tax
Does not levy a tax on estates or inheritances
Personal income tax uses a flat rate
Sales tax base includes groceries
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