Cost of Living / Taxes
Mississippi offers a sweet income-tax deal for retirees. It not only exempts Social Security benefits from state income taxes but also excludes all qualified retirement income -- including pensions, annuities, and IRA and 401(k) distributions. Remaining income is taxed at a maximum 5%. In addition, Mississippi is home to some of the lowest property taxes in the nation. Residential property is taxed at 10% of assessed value, and seniors qualify for a homestead exemption on the first $75,000 of value. The statewide sales tax is 7%. Locally, food and beverage taxes add 2% and lodging taxes add 2% as well. Counties and cities may add up to 3% to the state rate, but prescription drugs and health care services are exempt. In 2011, Kiplinger ranked Mississippi as having the second lowest overall tax burden in the country.
|Location||C2ER Cost of Living (All Items)||
|New Orleans, LA||97.2||95.9|
|Little Rock, AR||97.7||93.6|
|Baton Rouge, LA||91.6||88.9|
*- Council for Community and Economic Research