Jackson is the capital of Mississippi and takes a great pride in its traditional southern heritage. Forbes magazine ranked Jackson the third best “Bang For Your Buck” out of the largest 100 metropolitan areas in the United States. Jackson MS real estate is affordable compared to the national average. Over the past thirty years, however, Jackson suffered the same fate as many other large American cities. Rising taxes and crime pushed the upper classes out of the city limits into new suburban developments. Urban sprawl continued until most of the residents in the Jackson metropolitan area ended up living outside the city limits. While the size of the Jackson area swelled outside the city limits, real estate and infrastructure inside the city fell into disrepair. Over the past few years, however, more than $1.2 billion has been spent on revitalizing downtown Jackson’s real estate and infrastructure. New construction and renovation of existing buildings downtown are succeeding in bringing business back to the central business district of downtown Jackson. Still, Jackson faces the same pressures of high property taxes and crime that continue to plague gentrification efforts in similar cities.
In spite of the high property taxes within the city limits, the cost of living is considered to be quite affordable when compared to many other locations around the country. In fact, Mississippi often shows up on lists of states with the lowest property taxes in the country. While overall housing costs in Mississippi and the city of Jackson are relatively low, some of this can be attributed to the low prices of real estate and not necessarily to the low property tax rates. In fact, the city of Jackson recently reported that they are planning to keep property tax rates flat over the next year but expect lower revenue due to declining property values.
Why do property taxes differ throughout the state?
Property taxes are calculated as a percent, or millage rate, of a property’s assessed value. Local governments use these tax dollars to fund local government services such as education, emergency service, transportation, libraries, and parks and recreation facilities. Property tax rates are not set at the state level but by county and city governments. While residents obviously prefer lower property tax rates to higher property tax rates, you also need to consider the capitalization effect of those taxes. The capitalization effect relates property tax rates to the quality of the services the government provides with those tax dollars. So, residents may not mind somewhat higher tax rates if they feel that they perceive that the government in turn provides high quality services.
How are the Property Taxes in Mississippi?
Rather than comparing an average property tax bill across locations, you can compare an estimated property tax bill on a home with the same value. When you compare the estimated taxes on a $150,000 home around the United States, you get a better idea of where property tax rates actually stand. First, compare Jackson MS property taxes to some other larger urban areas in the state. Here you can see that perhaps the larger issue in Jackson is not the high property tax rates but rather the perceived value of what residents get in exchange for the taxes that they pay. Residents inside the cities of Hattiesburg and Meridian are actually paying higher property tax rates than the residents of Jackson. You can also see how higher property taxes inside the city limits of Jackson (Hinds County) as well as Hattiesburg (Forrest County) created urban sprawl into neighboring counties with lower tax rates.
Jackson, MS – Hinds County – $1185 or 0.79% of appraised value
Jackson, MS – Madison County – $999 or 0.67% of appraised value
Jackson, MS – Rankin County – $840 or 0.56% of appraised value
Gulfport, MS – Harrison County – $870 or 0.58% of appraised value
Hattiesburg, MS – Forrest County – $1275 or 0.85% of appraised value
Hattiesburg, MS – Lamar County – $999 or 0.67% of appraised value
Meridian, MS – Lauderdale County – $1320 or 0.88% of appraised value
Tupelo, MS – Lee County – $1110 or 0.74% of appraised value
A Comparison of Property Taxes Around the Country
In fact, property tax rates in Jackson are quite low when compared to other cities. Property taxes in Jackson are slightly higher than some other large southern cities such as New Orleans and Birmingham, but they are much lower than residents would pay in most large cities around the country. For example, here are property tax estimates for a $150,000 home in Jackson, MS as well as some other large cities.
Birmingham, AL – Jefferson County – $870
New Orleans, LA – Orleans Parish – $915
Boston, MA – Suffolk County – $1170
Jackson, MS – Hinds County – $1185
Seattle, WA -King County – $1320
Nashville, TN – Davidson County – $1444
Atlanta, GA – Fulton County – $1620
Baltimore, MD – Baltimore City – $1725
Cleveland, OH – Cuyahoga County – $2895
Houston, TX – Harris County – $3465
Although the Jackson property tax rate is high compared to neighboring areas outside the city limits, it is still affordable compared to other large cities. Property taxes in Jackson look even more appealing when you realize that home prices are relatively low compared to these same cities.
2 Point Highlight
Property taxes in Jackson are slightly higher than some other large southern cities such as New Orleans and Birmingham, but they are much lower than residents would pay in most large cities around the country.
Although the Jackson property tax rate is high compared to neighboring areas outside the city limits, it is still affordable compared to other large cities.
