Mississippi Salary Calculator

Mississippi Income Tax Overview (2026)

Mississippi is phasing to a 4% flat rate (from 5%) — fully phased by 2026. The rate applies to all income above the standard deduction. Mississippi does not tax Social Security income.

In addition to state tax, all Mississippi workers pay federal income tax (10%–37% marginal rates) and FICA — Social Security (6.2%) and Medicare (1.45%), totaling 7.65% of gross wages. Voluntary deductions like 401(k) contributions or health insurance premiums further reduce taxable income.

Cost of Living in Mississippi

Mississippi is the most affordable state in the US by most measures. Median home prices are around $170,000. Jackson's one-bedrooms average $750/month. Groceries and utilities are significantly below national averages.

When evaluating a job offer in Mississippi, consider not just the salary but total compensation — employer benefits, retirement match, and location-specific costs. A $70,000 salary in a low cost-of-living Mississippi city may be more livable than $85,000 in a high-cost metro.

Top Industries and Employers in Mississippi

Mississippi's economy is anchored by agriculture, poultry and catfish processing, military installations, healthcare, gaming (casino industry). The state median household income is approximately $46,000 per year, though this varies significantly by region and occupation.

Mississippi follows the federal minimum wage floor of $7.25/hour, so entry-level pay here is set largely by employer competition rather than state law, and the state's $46,000 median household income trails the national figure, reflecting a lower cost of living that partly offsets the gap.

How Mississippi Compares to Other States

Mississippi's 4.0% flat rate means a worker earning $75,000 pays approximately $3,525 in state income tax annually. Compared to zero-tax states, this reduces take-home by $3,525/year — a meaningful difference that compounds significantly over a career.

For workers evaluating a potential relocation, state income tax is just one factor. Property taxes, sales taxes, cost of living, job market depth, and quality of public services all contribute to the complete financial picture. Use our Salary Calculator to compare take-home pay across all 50 states side by side.

How to Calculate Your Mississippi Take-Home Pay

Your net pay is your gross salary minus: (1) federal income tax based on your bracket and filing status, (2) FICA at 7.65% of gross wages, (3) Mississippi state income tax at 4.0%, and (4) any voluntary deductions such as 401(k), HSA, or health insurance premiums. The calculator above handles steps 1–3 automatically.

Tax-Advantaged Strategies for Mississippi Workers

Regardless of your state tax rate, contributing to pre-tax retirement accounts like a 401(k) or traditional IRA reduces your federal taxable income dollar for dollar. In 2026, you can contribute up to $24,500 to a 401(k) and $7,500 to an IRA. For someone earning $60,000 in Mississippi, maxing the 401(k) reduces federal taxable income by $24,500 — saving approximately $2,940 in federal tax (at 12% marginal rate) plus approximately $980 in Mississippi state tax.