State Income Taxes in Mississippi
The state of Mississippi does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale. They only have three tax brackets, the highest bracket starting at anything over $10,000. The range is from 3.0% to 5.0% for 2020.
State Business Taxes in Mississippi
The state of Mississippi does have a business income tax. Mississippi corporate tax is calculated on a marginal scale whose range is from 3.0% to 5.0% for 2020. The lowest bracket (3%) is for business income below $5,000. Mississippi is planning to eliminate this bracket by 2022.
For other business entities that are flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., since it flows-thru to the individual level, there is no business tax on those entities.
Similar to the State of Florida, the business income tax is assessed on only C Corporations.
Franchise taxes in Mississippi
In addition to the Corporate Business tax, Mississippi has a Capital Stock tax, called a Franchise tax. The Franchise Tax is assessed on $2.25 per $1,000 (or 0.25%) of the greater of capital invested or property values in this state. There is a minimum tax of $25 per entity.
Note: Franchise tax effects the following entities
- C Corporations
- S Corporations
- LLCs that have elected to be tax for Federal purposes as C or S Corporations.
Sales and Property Taxes in Mississippi
Mississippi has the second highest states sales tax in the country (only second to California). They have two sales tax rates, one at the state level and another at the local level. The state rate is 7.0% the average local rate is .07% (total average rate for Mississippi Sales Tax is 7.07%).
Property Taxes in Mississippi – the average property tax rate for residential property in the state of Mississippi is 0.65%, making it a very inexpensive place to own property.
Payroll Taxes in Mississippi
Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:
- Wage Base – Mississippi has a wage base of $14,000 for 2020
- UI Rates – range from 0.20% to 5.60%
- Schedules – Mississippi has only one schedule regarding UI rates
Mississippi Business Entities – LLCs
Mississippi is one of the cheapest states in the country to set up your LLC. Here are some important facts:
- Mississippi does not have an annual LLC fee.
- When you register with the state, you pay a one time fee of $50
- Secretary of State of Mississippi website – click here