Mississippi Salary Calculator 2026 — Free Take-Home Pay Estimator

Mississippi Income Tax Summary

Mississippi has a flat income tax rate of 4.7% as of 2024, with scheduled reductions that will phase the rate down to 4.0% by 2026. The state taxes most forms of income but offers a standard deduction and personal exemption. Mississippi's income tax burden is low, and the state has a low cost of living. [Source: Mississippi Department of Revenue, 2026]

Mississippi Income Tax Rules

• Flat income tax rate of 4.7% (phasing down to 4.0% by 2026) [Source: Mississippi Department of Revenue, 2026]
• Standard deduction: $2,300 for single filers, $4,600 for married filing jointly [Source: Mississippi Department of Revenue, 2026]
• Personal exemption: $6,000 per exemption
• Wages, salaries, tips, interest, dividends, and capital gains are all taxable
• Social Security benefits are not taxed at the state level
• Retirement income from pensions and IRA distributions is generally taxable
• No deduction for federal income tax paid

Mississippi Payroll & Withholding Rules

Employers must withhold Mississippi income tax at the 4.7% rate. Withholding tables are provided by the Mississippi Department of Revenue. Unemployment insurance is employer-paid only. There are no mandatory local income taxes in Mississippi. [Source: Mississippi Department of Revenue, 2026]

Local Taxes in Mississippi

Mississippi does not levy county or city income taxes. Local governments rely on property taxes and local sales taxes for revenue. There are no local payroll taxes or income taxes assessed on individuals anywhere in Mississippi.

Cost of Living Context

Mississippi has the lowest cost of living in the United States, about 16% below the national average. Housing is extremely affordable. Transportation, groceries, and utilities are all below national averages. Major cities include Jackson, Gulfport, and Biloxi. [Source: Mississippi Department of Revenue, 2026]

Real-World Example: Mississippi

For a single filer earning $55,000/year in Jackson, Mississippi:

• Federal taxable income: ~$40,400 (after $14,600 standard deduction)
• Mississippi state tax: ~$2,200 (using 2026 brackets)
• Estimated take-home: ~$4,016/month (pre-FICA, pre-insurance)

Note: Actual results vary based on deductions, credits, and local taxes.

Mississippi FAQs

Q: What is the Mississippi income tax rate? [Source: Mississippi Department of Revenue, 2026] A: Mississippi has a flat rate of 4.7%, phasing down to 4.0% by 2026.

Q: Does Mississippi tax Social Security benefits? A: No, Mississippi does not tax Social Security retirement benefits.

Q: What is the standard deduction in Mississippi? [Source: Mississippi Department of Revenue, 2026] A: The standard deduction is $2,300 for single filers and $4,600 for married couples filing jointly. [Source: Mississippi Department of Revenue, 2026]

Q: Does Mississippi tax retirement income? A: Yes, pension and IRA distributions are generally taxable at the flat rate.

Q: Does Mississippi have a state sales tax? A: Yes, Mississippi has a state sales tax rate of 7%, with local additions. [Source: Mississippi Department of Revenue, 2026]

Q: What is the personal exemption in Mississippi? A: The personal exemption is $6,000 per exemption.

Q: Are capital gains taxed in Mississippi? A: Yes, capital gains are taxed as ordinary income at Mississippi's flat rate.