Mississippi tax guide
Mississippi has modernized its tax code by adopting a flat-tax model that prioritizes simplicity and competitiveness. With a 2026 rate of 4.00%, the state continues to reduce the tax burden on its workforce compared to the tiered brackets used as recently as 2021. This predictable tax environment allows for easier paycheck budgeting.
Key tax highlights
Payroll
- The state income tax rate for 2026 is set at a flat 4.00% on all taxable income.
- Mississippi has significantly reduced its tax burden over recent years, dropping from 5.0% in 2023 to 4.7% in 2024 and then to the current 4.00% rate.
- Employers are required to withhold the flat 4.00% rate from employee paychecks to cover state income tax obligations.
Local taxes
- Mississippi does not impose a separate local or municipal income tax on wages.
- While income is not taxed locally, residents should be aware that local sales and use taxes can vary significantly by city and county.
Deductions
- Mississippi provides a standard deduction that offsets a portion of your income before the 4.00% flat tax is applied.
- Taxpayers may also take advantage of specific exemptions for dependents and heads of families as defined by state tax law.
Salary examples
Pre-computed take-home estimates at common salary levels. For example, a $75,000 salary in Mississippi yields about $58,592 after all deductions (78.1% take-home rate). Use the calculator above with your actual salary to see your specific estimate.
| Salary | Federal | State | FICA | Take-Home | Rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $2,000 | $3,825 | $40,355 | 80.7% |
| $75,000 | $7,670 | $3,000 | $5,738 | $58,592 | 78.1% |
| $100,000 | $13,170 | $4,000 | $7,650 | $75,180 | 75.2% |
| $150,000 | $24,734 | $6,000 | $11,475 | $107,791 | 71.9% |
Neighboring states
How Mississippi compares with border states on income tax. At a $75,000 salary, a Mississippi worker pays $3,000 in state tax annually.
Mississippi rate history
Year-over-year changes to Mississippi's income tax rates.
| Year | Rate | Change |
|---|---|---|
| 2021 | 0%-5% | Three-bracket system |
| 2023 | 5.0% | Eliminated lowest bracket |
| 2024 | 4.7% | Reduced from 5.0% |
| 2025 | 4.4% | Reduced from 4.7% |
Tax tips for Mississippi
- Review your W-4 equivalent form to ensure your employer is using the current 4.00% rate for state withholding.
- Check for state-specific tax credits that may be available to offset your flat tax liability.
- Keep records of your contributions to retirement accounts, as Mississippi tax rules follow federal guidelines for deductible contributions.
Did you know?
- •Mississippi's path to a flat tax included a multi-year plan to eliminate lower tax brackets entirely.
- •The 2026 rate of 4.00% is one of the lowest historical rates for the state in modern times.
Filing guidance
Mississippi residents file their state income tax returns through the Mississippi Department of Revenue. Since the state uses a flat tax, calculating your estimated tax liability is straightforward: simply multiply your taxable income by 4.00% after applying the standard deduction. Always ensure your annual return is filed by the federal tax deadline to avoid late fees and interest.
Relocation context
Comparing Mississippi with nearby states can reveal whether paycheck differences are driven by state tax, local tax, or payroll deductions.