MS eliminates personal income tax ~
 

Gov. Reeves Signs Historic Legislation Eliminating Mississippi’s Individual Income Tax

retirement location competition

whose in?

I love MS, but there is a limited amount of golf in the area where I would go. So I'm out...for now.

(and it's who's)

FL already has no personal income tax, and they are working on no property tax. I will stay with FL.

Not so fast.

The new legislation, House Bill 1, cuts the individual income tax rate to 3% by calendar year 2030, with future annual decreases until it ultimately falls to 0%

I wouldn't look to Mississippi as a role model for states, seeing as it ranks at or near the bottom in so many important measurements such as health, economic well being and education.

Property tax relief- maybe. Elimination no way. Local communities depend on property taxes for schools and all the other many local services. It’s a bridge way too far.

I agree, higher ups are toting make up the tax through tourism, so property tax will be eliminated. Schools would have to count on private funding. Fl could become the most sought after no properties tax, to live in, but can you imagine the influx to move here.

Then again what city would approve more housing with zero property tax funds to keep it running.

So they will be catching up to Florida in the next 5 years. Why does this matter? It doesn’t! We are also lowering the sales tax and maybe our property tax will be lowered or eliminated. So which state will be the model for lowering taxes?

I spent three years in Mississippi, and while the people are genuinely wonderful, the state faces significant challenges. It remains the poorest in the nation, with glaring deficiencies in infrastructure and limited opportunities for recreation or entertainment. Unfortunately, it also holds the grim distinction of having the highest murder rate per capita in the United States.

In contrast, Florida adopted forward-thinking tax policies nearly a century ago, eliminating personal income taxes in the 1920s, along with inheritance taxes. The state is now exploring the possibility of abolishing property taxes for seniors, further enhancing its appeal as a destination for retirees. Given these advantages and Florida's proactive approach to development, the likelihood of Mississippi bridging the gap is virtually nonexistent.

Mississippi the Bangladesh of the South! They already depend on the US Federal Government for assistance.

The elimination of property taxes could happen but probably unlikely simply because of inertia; the easiest thing to do is nothing. One estimate suggested that a doubling of the sales tax to 12% would make up the revenue. One possible issue is that sales tax revenue may not be as stable as property tax revenue.

The other consideration is that property tax is a tax on the wealthy (at least those that own homes), while sales tax is generally a tax on the poor as they are more likely to spend most of their money on sales-taxable purchases.

While you can't judge an entire state by statewide statistics, Mississippi doesn't have the amenities most retirees are looking for. Florida as you note, has been very forward thinking, and is in an enviable position to push much of its tax burden onto visitors with some creative programs - sales tax holidays in the off-tourism months being one of them. Also, being a peninsula state, it isn't like residents can just pop over to another state to take advantage of their lower sales tax, unlike Mississippi and other mostly land-locked states.

Residents are not moving from Florida to MS. Come on!

We live in Louisiana, but I work in Mississippi. We will be moving to TV next year when I retire. I’ll be happy not pay state income tax to two states.