What does the new tax cut mean for you? Use our tool below to see how you and your family will fare under the new tax plan that was recently signed by the Governor.
1. Enter your county (double-click in the cell, for this step and the following steps)
2. Enter your income
3. Enter your weekly grocery bill
4. Enter your marital status
*For best results, please view on a desktop computer
Components of original House bill (latest House plan noted in red):
Effective Jan. 1, 2023, increase the combined total of the personal exemption and the standard deduction from the current $8,300 to $40,000 for individuals, and for married couples from $16,600 to $80,000. After 2023, these amounts would potentially increase annually, based on the growth in government revenue, until all income is exempt from state income tax. (New plan: $25,000 for individuals, $50,000 for married couples)
Increase the general sales tax and use tax rates from 7.0% to 8.5% effective July 1 of this year. (New plan: no increase in sales or use tax)
Reduce the sales tax rate on groceries (non-prepared food) from 7.0% to 5.5% effective July 1 of this year; then reduce it by a quarter-of-one-percent each July 1 for the next six years, to the final rate of 4%. (New plan: Reduce tax on groceries by ¼ of one percent each year for 12 years, still resulting in final rate of 4%.) Because cities receive from the state a portion of the sales tax derived from sales in their cities, the state would reimburse cities for the reduction in revenue from the decrease in the grocery tax.
Cut the “cost of a car tag” (which is really the cost of ad valorem tax on automobiles) by 50% to the taxpayer. However, because that tax is a local tax, the state would reimburse local governments to make up their lost revenue from this mandated cut in ad valorem taxes. This would be funded by a third (a half-percent) of the 1.5% increase in the general sales tax. (New plan: Since this would have been paid for with part of the sales tax increase, and since the sales tax increase has been deleted, this cut in the “cost of a car tag” has also been deleted.)
Original House bill, HB 531: http://billstatus.ls.state.ms.us/documents/2022/dt/HB/0500-0599/HB0531PS.pdf
Latest House Proposal (House amendment to SB 3164): http://billstatus.ls.state.ms.us/documents/2022/dt/ham/Amendment_Report_for_SB3164.pdf
Components of Original Senate bill (latest Senate plan noted in red):
Eliminate, over four years, the 4% income tax bracket, which is now assessed on taxable income of $5,001-$10,000. This would, in the fourth year, be a $200 tax cut (4% x $5,000). (New plan: instead of beginning in 2023, this phase-out would begin in 2027)
Cut sales tax on groceries from current 7% to 5% immediately (no phase in) (New plan: same)
Eliminate the state fee attached to car tags ($5 or so per tag) (New plan: deleted)
One-time rebate of 5% of last year’s tax liability, with a minimum of $100 and maximum of $1,000. Most people will receive $100-$200. (New plan: same)
New plan (no similar provision in original): Phase down the current 5% income tax rate to 4.6% over four years, 0.1% per year, beginning in 2023."
Original Senate bill:
Latest Senate Plan (Senate amendment to HB 531):