|On the Friday before Independence Day, a number of bills that were adopted earlier this year became law. At the bottom of this email we ask for your favorite, so keep reading!
This is highlighted by the largest tax cut in state history, though the actual changes to the tax code and your taxes won’t hit until January.
House Bill 531, the Mississippi Tax Freedom Act of 2022, phases in the more than $500 million tax cut over the next four years.
– In the first year, it eliminates Mississippi’s current 4 percent bracket that applies to the first $5,000 in taxed income.
– In years two through four, it reduces the rate that applies to all income over $10,000 from 5 percent down to 4 percent.
– Individuals will not pay income taxes on their first $18,300 of taxable income and families will not pay taxes on their first $36,600 of income.
– A worker who makes $40,000 per year will see their taxes reduced by $417 a year when fully implemented.
– A married couple making $80,000 would save $834 a year.
Empower’s Forest Thigpen breaks down the changes in full detail below.