Quick facts:
-Mississippi has both a Corporate Tax and Franchise Tax.
-Mississippi is inexpensive to open an LLC.
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.
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.
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
Like many states, Mississippi has multiple 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%)
Note: Mississippi has the second highest states sales tax in the country (only second to California’s 7.25%).
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.
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:
Mississippi is one of the cheapest states in the country to set up your LLC. Here are some important facts:
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