In Fiscal Year (FY) 2011, Mississippi collected $9.3 billion in state and local taxes. While this is an impressive sum of money, it tells us little about whether or not the average Mississippi taxpayer can afford this level of taxation.
As shown in the charts below, Mississippi’s state and local tax burden (tax collections divided by personal income) was the twentieth lowest in the nation for FY 2011 at 9.9 percent—or 5.4 percent below the national average of 10.5 percent. Mississippi’s tax burden has grown modestly over time by 20 percent to 9.9 percent in FY 2011 from 8.2 percent in FY 1950.
Mississippi’s lower than average state and local tax burden is driven by a low property tax burden (2.7 percent, 37th highest), and individual income tax burden (1.5 percent, 38th highest). However, Mississippi does have a significant sales tax burden (3.2 percent, 10th highest) that offsets the other lower taxes.
Note: FY 2012 tax data from the U.S. Census Bureau will not be available until later in 2014 because FY 2012 was part of their comprehensive “Census of Governments” that is done every 5 years (on years ending 2 and 7). Rest assured that Key Policy Data will post the FY 2012 as soon as it becomes available.
J. Scott Moody has over 18 years as a public policy economist with a specialty in tax policy and has over 180 publications. He has worked for numerous national and state-based think tanks such as Federalism In Action, Tax Foundation, Heritage Foundation, and The Maine Heritage Policy Center.