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In the last 25 years, the median income in Mississippi has risen from $15,430 in 1984 (the year the current state income tax brackets were made permanent) to $35,078 in 2009. Meanwhile, state income tax brackets remain unchanged—becoming less progressive as incomes rise due to inflation.

Mississippi state income tax brackets are as follows:

• 3% on the first $5,000 of taxable income;
• 4% on the next $5,000, and;
• 5% on taxable income over $10,000.

When the current income tax brackets were created, the top bracket was under the median household income by about $5,000. In 2009, median income was about $25,000 over the top income tax bracket.

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Income taxes with a graduated rate structure are designed to be progressive, meaning persons with higher incomes pay more in taxes than those with lower incomes. Even in 1984, Mississippi’s income tax was mostly flat with a top bracket that started at $10,000. Both then and now, families making $30,000 or $300,000 can find themselves in the same tax bracket. When tax brackets are not updated over time, the income tax becomes less and less progressive, as more and more families have income that falls under the top bracket due to inflation.

Source:

U.S. Census Bureau Current Population Survey