Mississippi middle of the pack in State Tax Competitiveness Index

Mississippi middle of the pack in State. Mississippi middle of the pack in State Tax Competitiveness Index.

Key points

• News Cass Rutledge September 2, 2026. $10 million USDA grant supports expansion of Leland Medical Clinic.
• Mississippi's neighboring states of Tennessee, Arkansas, Alabama and Louisiana came in with an overall competitiveness score of 8th, 34th, 37th, and 31st, respectively, in the Index.
• The Index lists the Top 5 overall most competitive states with Wyoming in the top spot, followed by South Dakota, New Hampshire, Alaska and Florida.
• The least competitive states ranked 47th through 50th were Connecticut, California, New Jersey and New York, respectively.
• Charles Tillotson looks to be confirmed as the new Port Director in Pascagoula, pending approval afterwards this week by the Jackson County Port Authority Board of Commissioners.

Mississippi middle of the pack in State. Mississippi middle of the pack in State Tax Competitiveness Index. By: Frank Corder – September 3, 2026. (From the Tax Foundation).

For context, the Tax Foundation's Index compares each state on more than 150 variables in the five major areas of taxation. Mississippi benefits from a low, flat individual income tax rate and a relatively low corporate income tax rate.

In practice, the Tax Foundation lately issued its State Tax Competitiveness Index. The report is aimed at enabling policymakers, taxpayers, and business leaders to gauge how their states' tax systems compare throughout the U.S.

As it benefits from a low, flat individual income tax rate and a relatively low corporate income tax rate, mississippi ranks near the middle of the pack on the Index.

For context, the Index compares each state on more than 150 variables in the five major areas of taxation – corporate taxes, individual income taxes, sales and excise taxes, property and wealth taxes, and unemployment insurance taxes – and then it adds the results to yield a final, overall ranking.

While additionally measuring the general competitiveness of states' overall tax systems, the Tax Foundation notes this approach rewards states on particularly robust aspects of their tax systems or penalizes them on particularly subdued aspects. The result, the Foundation notes, is a score that can be compared to other states.

Meanwhile, the Index states that "Mississippi's throwback rule" exposes in-state firms to higher Mississippi tax liability when they sell tangible property into states with which they do not have nexus.

"Additionally, Mississippi maintains a graduated-rate corporate income tax despite moving to a single-rate individual income tax in 2023, a rate that has been reduced to 4.4 percent as of 2025, with the aim to reduce it further to 4 percent by 2026, " the Tax Foundation report outlines. "While Mississippi's statewide sales tax rate is among the highest in the country, low reliance on local sales taxes yields a combined state and average local rate that sits near the middle of the pack."

For context, the Index states that as part of a series of pro-growth reforms, in 2023, Mississippi joined Oklahoma to become the second state in the country to enact permanent full expensing for machinery and equipment investments, thereby increasing the marginal attractiveness of Mississippi for firms that invest in sizeable amounts of capital.

Additionally, Mississippi's capital stock tax is scheduled to phase out by 2028. It will further improve the state's ability to attract business investment.

"While Mississippi's property taxes are relatively low, its taxation of tangible personal property, including business inventory, as well as intangible property, penalizes in-state investment and hurts the state's property tax component score, " the Foundation report explains.

In practice, the Mississippi Development Authority shared this week that Mississippi's combined state and local tax burden is $4, 868 per capita, the lowest in the nation and 31% below the national average. Pointing to the Index 's rankings, MDA remarked Mississippi being ranked No. 6 nationally for corporate taxes and No. 13 for unemployment insurance taxes carries significant weight in site-selection cost models for businesses looking to invest in the Magnolia State.

According to MDA further, mississippi's affordability index is 87.3, meaning a household earning $67, 000 in Mississippi has purchasing power comparable to approximately $77, 000 in the average U.S. Market.

"At the same time, overall productivity has increased 12% over the past 15 years, " MDA explained in their September brief. "For firms comparing locations, the question isn't simply what it costs to produce the initial investment. It's what the business case looks like five, 10 or even 20 years afterwards."

Notably, the Index lists the Top 5 overall most competitive states with Wyoming in the top spot, followed by South Dakota, New Hampshire, Alaska and Florida.

For context, the least competitive states ranked 47th through 50th were Connecticut, California, New Jersey and New York, respectively. Regarding the Author(s).

Frank Corder is a native of Pascagoula. For almost two decades, he has noted and offered analysis on administration, public policy, business and matters of faith. Frank's interviews, articles, and columns have been shared throughout Mississippi as well as in national publications. He is a frequent guest on radio and television, providing insight and commentary on the inner workings of the Magnolia State. Frank has served his community in both elected and appointed public office, hosted his own local radio and television programs, and managed private businesses all while being an engaged husband and father. Email Frank: [email protected].

Business Frank Corder August 18, 2026. New Director coming to Port Pascagoula.

Charles Tillotson looks to be confirmed as the new Port Director in Pascagoula, pending approval afterwards this week by the Jackson County Port Authority Board of Commissioners. More From This Author. News Frank Corder September 2, 2026. Nigerian man pleads not guilty in Walker Montgomery sextortion scheme. News Frank Corder September 1, 2026. Barnett resigns from Mississippi Senate. News Frank Corder August 31, 2026. SpaceXAI powers down 11 of 69 temporary turbines at Southaven facility. News Frank Corder September 2, 2026. Mississippi's August revenue collections come in $51 million above estimate.

News Frank Corder August 18, 2026. Marathon Cheese expanding in Booneville, creating 39 jobs.

For context, the $326, 000 expansion investment features the installation of new manufacturing equipment and includes a production line that will growth slicing and packaging capacity at the Booneville facility. Business Frank Corder August 14, 2026. Signet Maritime refinances debt, receives federal small shipyard grant funding.

Meanwhile, the firm has arranged $132 million in debt refinancing while the Signet Maritime shipyard in Pascagoula is receiving close to $388, 000 in federal funding through the U.S. Department of Transportation. News Cass Rutledge September 2, 2026. $10 million USDA grant supports expansion of Leland Medical Clinic. News Jeremy Pittari September 2, 2026. Mississippi law enforcement operation targets card skimmer fraud. News Frank Corder September 2, 2026. Gulf Ship investing $44 million to expand Gulfport shipyard. Business Frank Corder August 28, 2026. Ocean Aero creating 45 jobs with $4 million expansion in Gulfport.

Business Frank Corder August 27, 2026. Raytheon announces completion of $50 million expansion in Forest. Business Cass Rutledge August 20, 2026. Solero Technologies announces $14 million expansion in Water Valley. Culture Richelle Putnam September 3, 2026. Aie's Taste of Thai: Food, music, and a giving heart. Culture Alistair Begg September 3, 2026. A theology of grief. Culture Steve Reed, Associated Press September 2, 2026.

Clemson's Swinney notes he hasn't heard from NCAA on tampering allegations he produced against Ole Miss. Opinion Sid Salter September 2, 2026. For over 40 years, Mississippi workers have exceeded expectations at Raytheon. Opinion Ashby Foote September 1, 2026. Energy Wars: Attack of the drones. Opinion Roger Wicker August 28, 2026. Reports of Mississippi momentum are true.

In short, mississippi middle of the pack in State Tax Competitiveness Index is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.