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OTHER MISSISSIPPI TAXES

Withholding of Personal Income Tax

 

Mississippi levies a tax on individual income in the state, as required in §27-7-5 of the Mississippi Code.  Income tax is assessed at the same rate for individuals as it is for business entities.  Employers are statutorily required to withhold Mississippi personal income tax from its employees and remit these withholdings directly to the Mississippi State Tax Commission.  This tax is a deduction from the employee’s wages, and does not require a contribution from the employer.  Specific registration, withholding, and filing requirements can be obtained from the Mississippi State Tax Commission.

State Unemployment Compensation Tax

 

Mississippi levies an unemployment compensation tax on the first $7,000 of an employee’s annual wages, as provided for in Mississippi Code §71-5-1 et seq.  The maximum contribution rate for employers is 5.4%, with the minimum rate equaling 0.9%.  Both the state minimum rate and the business’s rate vary from year to year.  New employers in the state are assigned an initial rate of 2.7% of wages until the Mississippi Department of Employment Security can compute an actual experience rate for the employer.  Rates are recalculated each October and apply to the following year’s wages.  Rates are adjusted after two to three years of Mississippi filings, depending upon what time of year the employer begins reporting.

Worker’s Compensation

 

Mississippi employers with five or more employees are required to purchase worker’s compensation coverage through an insurance carrier, or they must qualify with the Mississippi Worker’s Compensation Commission as a self-insurer.

 

The compensation is about two-thirds of the claimant’s average weekly wages for up to 450 weeks, not including medical payments.  These amounts are indexed on an annual basis.

 

Additional Information

 

 

For additional information on these incentives, along with specific requirements related to applying for the incentives, visit the Mississippi State Tax Commission’s website at www.mstc.state.ms.us, and select Tax Incentives from the Reference column.

 

 

*The company must meet minimum criteria set forth by state statute and the rules and regulations of the Mississippi Development Authority, Mississippi Business Finance Corporation, Mississippi State Tax Commission, and local governing authorities to receive these credits/exemptions/incentives.

 

Mississippi Average Annual Salaries for Calendar Year 2004

 

County

Average Annual Salary

110% of Average Annual Salary

125% of Average Annual Salary

150% of Average Annual Salary

175% of Average Annual Salary

200% of Average Annual Salary

State Average

$28,004.00

$30,804.40

$35,005.00

$42,006.00

$49,007.00

$61,608.80

 

 

 

 

 

 

 

Adams

$24,569.00

$27,025.90

$30,711.25

$36,853.50

$42,995.75

$54,051.80

Alcorn

$27,011.00

$29,712.10

$33,763.75

$40,516.50

$47,269.25

$59,424.20

Amite

$23,063.00

$25,369.30

$28,828.75

$34,594.50

$40,360.25

$50,738.60

Attala

$22,339.00

$24,572.90

$27,923.75

$33,508.50

$39,093.25

$49,145.80

Benton

$25,147.00

$27,661.70

$31,433.75

$37,720.50

$44,007.25

$55,323.40

Bolivar

$25,183.00

$27,701.30

$31,478.75

$37,774.50

$44,070.25

$55,402.60

Calhoun

$22,242.00

$24,466.20

$27,802.50

$33,363.00

$38,923.50

$48,932.40

Carroll

$21,162.00

$23,278.20

$26,452.50

$31,743.00

$37,033.50

$46,556.40

Chickasaw

$24,730.00

$27,203.00

$30,912.50

$37,095.00

$43,277.50

$54,406.00

Choctaw

$28,240.00

$31,064.00

$35,300.00

$42,360.00

$49,420.00

$62,128.00

Claiborne

$42,474.00

$46,721.40

$53,092.50

$63,711.00

$74,329.50

$93,442.80

Clarke

$22,490.00

$24,739.00

$28,112.50

$33,735.00

$39,357.50

$49,478.00

Clay

$27,274.00

$30,001.40

$34,092.50

$40,911.00

$47,729.50

$60,002.80

Coahoma

$25,984.00

$28,582.40

$32,480.00

$38,976.00

$45,472.00

$57,164.80

Copiah

$23,954.00

$26,349.40

$29,942.50

$35,931.00

$41,919.50

$52,698.80

Covington

$21,944.00

$24,138.40

$27,430.00

$32,916.00

$38,402.00

$48,276.80

Desoto

$27,347.00

$30,081.70

$34,183.75

$41,020.50

$47,857.25

$60,163.40

Forrest

$28,906.00

$31,796.60

$36,132.50

$43,359.00

$50,585.50

$63,593.20

Franklin

$25,285.00

$27,813.50

$31,606.25

$37,927.50

$44,248.75

$55,627.00

George

$23,287.00

$25,615.70

$29,108.75

$34,930.50

$40,752.25

$51,231.40

Greene

$22,947.00

$25,241.70

$28,683.75

$34,420.50

$40,157.25

$50,483.40

Grenada

$26,723.00

$29,395.30

$33,403.75

$40,084.50

$46,765.25

$58,790.60

Hancock

$31,405.00

$34,545.50

$39,256.25

$47,107.50

$54,958.75

$69,091.00

Harrison

$26,506.00

$29,156.60

$33,132.50

$39,759.00

$46,385.50

$58,313.20

Hinds

$33,579.00

$36,936.90

$41,973.75

$50,368.50

$58,763.25

$73,873.80

Holmes

$23,504.00

$25,854.40

$29,380.00

$35,256.00

$41,132.00

$51,708.80

Humphreys

$19,345.00

$21,279.50

$24,181.25

$29,017.50

$33,853.75

$42,559.00

Issaquena

$20,480.00

$22,528.00

$25,600.00

$30,720.00

$35,840.00

$45,056.00

Ittawamba

$24,860.00

$27,346.00

$31,075.00

$37,290.00

$43,505.00

$54,692.00

Jackson

$32,750.00

$36,025.00

$40,937.50

$49,125.00

$57,312.50

$72,050.00

Jasper

$25,241.00

$27,765.10

$31,551.25

$37,861.50

$44,171.75

$55,530.20

Jefferson

$22,124.00

$24,336.40

$27,655.00

$33,186.00

$38,717.00

$48,672.80

Jefferson Davis

$22,035.00

$24,238.50

$27,543.75

$33,052.50

$38,561.25

$48,477.00

Jones

$27,454.00

$30,199.40

$34,317.50

$41,181.00

$48,044.50

$60,398.80

Kemper

$21,055.00

$23,160.50

$26,318.75

$31,582.50

$36,846.25

$46,321.00

Lafayette

$28,083.00

$30,891.30

$35,103.75

$42,124.50

$49,145.25

$61,782.60

Lamar

$23,752.00

$26,127.20

$29,690.00

$35,628.00

$41,566.00

$52,254.40

Lauderdale

$27,571.00

$30,328.10

$34,463.75

$41,356.50

$48,249.25

$60,656.20

Lawrence

$33,749.00

$37,123.90

$42,186.25

$50,623.50

$59,060.75

$74,247.80

Leake

$20,596.00

$22,655.60

$25,745.00

$30,894.00

$36,043.00

$45,311.20

Lee

$31,456.00

$34,601.60

$39,320.00

$47,184.00

$55,048.00

$69,203.20

Leflore

$25,428.00

$27,970.80

$31,785.00

$38,142.00

$44,499.00

$55,941.60

Lincoln

$26,480.00

$29,128.00

$33,100.00

$39,720.00

$46,340.00

$58,256.00

Lowndes

$27,811.00

$30,592.10

$34,763.75

$41,716.50

$48,669.25

$61,184.20

Madison

$30,728.00

$33,800.80

$38,410.00

$46,092.00

$53,774.00

$67,601.60

Marion

$23,037.00

$25,340.70

$28,796.25

$34,555.50

$40,314.75

$50,681.40

Marshall

$24,807.00

$27,287.70

$31,008.75

$37,210.50

$43,412.25

$54,575.40

Monroe

$28,209.00

$31,029.90

$35,261.25

$42,313.50

$49,365.75

$62,059.80

Montgomery

$20,066.00

$22,072.60

$25,082.50

$30,099.00

$35,115.50

$44,145.20

Neshoba

$25,579.00

$28,136.90

$31,973.75

$38,368.50

$44,763.25

$56,273.80

Newton

$24,558.00

$27,013.80

$30,697.50

$36,837.00

$42,976.50

$54,027.60

Noxubee

$22,680.00

$24,948.00

$28,350.00

$34,020.00

$39,690.00

$49,896.00

Oktibbeha

$26,651.00

$29,316.10

$33,313.75

$39,976.50

$46,639.25

$58,632.20

Panola

$24,959.00

$27,454.90

$31,198.75

$37,438.50

$43,678.25

$54,909.80

Pearl River

$23,092.00

$25,401.20

$28,865.00

$34,638.00

$40,411.00

$50,802.40

Perry

$32,883.00

$36,171.30

$41,103.75

$49,324.50

$57,545.25

$72,342.60

Pike

$23,276.00

$25,603.60

$29,095.00

$34,914.00

$40,733.00

$51,207.20

Pontotoc

$26,774.00

$29,451.40

$33,467.50

$40,161.00

$46,854.50

$58,902.80

Prentiss

$24,529.00

$26,981.90

$30,661.25

$36,793.50

$42,925.75

$53,963.80

Quitman

$21,937.00

$24,130.70

$27,421.25

$32,905.50

$38,389.75

$48,261.40

Rankin

$30,065.00

$33,071.50

$37,581.25

$45,097.50

$52,613.75

$66,143.00

Scott

$23,268.00

$25,594.80

$29,085.00

$34,902.00

$40,719.00

$51,189.60

Sharkey

$20,327.00

$22,359.70

$25,408.75

$30,490.50

$35,572.25

$44,719.40

Simpson

$20,872.00

$22,959.20

$26,090.00

$31,308.00

$36,526.00

$45,918.40

Smith

$27,516.00

$30,267.60

$34,395.00

$41,274.00

$48,153.00

$60,535.20

Stone

$24,954.00

$27,449.40

$31,192.50

$37,431.00

$43,669.50

$54,898.80

Sunflower

$22,316.00

$24,547.60

$27,895.00

$33,474.00

$39,053.00

$49,095.20

Tallahatchie

$21,179.00

$23,296.90

$26,473.75

$31,768.50

$37,063.25

$46,593.80

Tate

$24,263.00

$26,689.30

$30,328.75

$36,394.50

$42,460.25

$53,378.60

Tippah

$25,678.00

$28,245.80

$32,097.50

$38,517.00

$44,936.50

$56,491.60

Tishomingo

$24,386.00

$26,824.60

$30,482.50

$36,579.00

$42,675.50

$53,649.20

Tunica

$26,030.00

$28,633.00

$32,537.50

$39,045.00

$45,552.50

$57,266.00

Union

$25,388.00

$27,926.80

$31,735.00

$38,082.00

$44,429.00

$55,853.60

Walthall

$21,123.00

$23,235.30

$26,403.75

$31,684.50

$36,965.25

$46,470.60

Warren

$27,809.00

$30,589.90

$34,761.25

$41,713.50

$48,665.75

$61,179.80

Washington

$25,172.00

$27,689.20

$31,465.00

$37,758.00

$44,051.00

$55,378.40

Wayne

$24,221.00

$26,643.10

$30,276.25

$36,331.50

$42,386.75

$53,286.20

Webster

$21,973.00

$24,170.30

$27,466.25

$32,959.50

$38,452.75

$48,340.60

Wilkinson

$23,891.00

$26,280.10

$29,863.75

$35,836.50

$41,809.25

$52,560.20

Winston

$28,536.00

$31,389.60

$35,670.00

$42,804.00

$49,938.00

$62,779.20

Yalobusha

$27,707.00

$30,477.70

$34,633.75

$41,560.50

$48,487.25

$60,955.40

Yazoo

$26,415.00

$29,056.50

$33,018.75

$39,622.50

$46,226.25

$58,113.00

County Development Designation for 2006

 

The state’s 82 counties have been divided into three groups; Tier 1, which is comprised of the state’s most developed areas, Tier 2, which contains moderately developed counties, and Tier 3, which are the state’s least developed areas.

 

Tier Three

Less Developed

Tier Two

Moderately Developed

Tier One

More Developed

Jefferson

Monroe

Lowndes

Wilkinson

Copiah

Scott

Holmes

Pearl River

Alcorn

Claiborne

Amite

Calhoun

Noxubee

Bolivar

Grenada

Jefferson Davis

George

Leake

Benton

Humphreys

Tate

Quitman

Leflore

Union

Issaquena

Tishomingo

Simpson

Panola

Prentiss

Pontotoc

Sharkey

Wayne

Newton

Franklin

Adams

Lincoln

Tallahatchie

Stone

Itawamba

Choctaw

Clarke

Lauderdale

Sunflower

Hancock

Oktibbeha

Walthall

Jasper

Smith

Tunica

Pike

Hinds

Kemper

Harrison

Forrest

Webster

Montgomery

Lee

Greene

Coahoma

Warren

Chickasaw

Marion

Lamar

Perry

Covington

Neshoba

Marshall

Attala

Jones

Yazoo

Lawrence

Lafayette

Washington

Tippah

Rankin

Clay

Jackson

Madison

Winston

Carroll

Desoto

Yalobusha

 

 

 

 Notes:

* County rankings and areas receiving a GAP designation may change.

**A business entity locating in a county that has received a GAP designation and also is a Tier 3 county may choose whether to use Tier 3 or GAP incentives.

***The company must meet minimum criteria set forth by state statute and the rules and regulations of the Mississippi Development Authority, Mississippi Business Finance Corporation, Mississippi State Tax Commission, and local governing authorities to receive these credits/exemptions/incentives.