3 tax brackets from 0% to 4.7% (phasing to 4% flat by 2026)
Mississippi has progressive income tax rates from 0-4.7% across 3 brackets, with a low effective rate for most earners. At $100,000 income, Mississippi residents pay $3,880 state tax (3.88% effective rate) plus $12,908 federal tax. The first $5,000 is tax-free, then 4% on $5K-$10K, and 4.7% on income over $10,000. Mississippi is phasing to a 4% flat tax by 2026 under 2022 tax reform legislation.
Mississippi has a progressive income tax with rates from 0-4.7% across 3 brackets, making it one of the lowest-tax states in the nation. The structure is simple: 0% on first $5,000 (tax-free), 4% on income $5,000-$10,000, and 4.7% on all income over $10,000. At $100K income, your effective state rate is just 3.88% ($3,880 tax) - competitive with flat-tax states like Colorado (4.4%) and Utah (4.65%).
Tax reform in progress - phasing to 4% flat: Mississippi passed major tax reform in 2022 (HB 531) that will eventually eliminate the progressive brackets and create a 4% flat tax by 2026. The phase-in is tied to state revenue triggers - if revenue grows sufficiently, the top rate drops from 4.7% to 4.4%, then 4%, and finally the first $5,000 exemption becomes a larger standard deduction under the flat system. As of 2026, the transition is still in progress, so the current 0-4.7% system remains in effect.
How it compares regionally:
The poverty context - lowest income state nationally: Mississippi has the lowest median household income in the US at $49,000 (2023), compared to $75,000 nationally. The 0% tax on first $5,000 and low 4.7% top rate reflect economic reality - higher rates would be unaffordable for most residents. Poverty rate is 19.4% (highest nationally) vs 11.5% US average. The tax structure prioritizes affordability over revenue generation.
The tradeoff - low taxes, challenged services: Mississippi's low income tax (projected $1.9B revenue in 2026) means limited funding for state services. MS ranks 50th nationally in K-12 education spending per pupil ($9,500 vs $16,000 US average), 49th in healthcare quality, and 47th in infrastructure. The state relies heavily on federal transfers (42% of state budget vs 31% nationally). Low taxes are partly by necessity (low incomes) and partly by choice (political preference for smaller government).
Source: Mississippi Department of Revenue - Individual Income Tax
| Taxable Income | Tax Rate |
|---|---|
| $0 - $5,000 | 0% |
| $5,000 - $10,000 | 4% |
| Over $10,000 | 4.7% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Here's what Mississippi residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $4,166 | $1,880 | $6,046 | $43,954 | 12.1% |
| $75,000 | $8,340 | $3,055 | $11,395 | $63,605 | 15.2% |
| $100,000 | $12,908 | $3,880 | $16,788 | $83,212 | 16.8% |
| $150,000 | $25,218 | $6,230 | $31,448 | $118,552 | 21.0% |
| $250,000 | $54,094 | $10,930 | $65,024 | $184,976 | 26.0% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Mississippi takes $3,880 in state tax alone.
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.8 verified reviews · 3,758 reviews
Planning a move to or from Mississippi? Multi-state filing is complex. Get matched with a CPA who handles Mississippi taxes and multi-state returns. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →Migration Trends: According to U.S. Census Bureau data (2021-2022), Mississippi experienced net outmigration of 10,420 residents - one of the highest outmigration rates in the nation. Top origin states were:
Outflow: Mississippi lost residents to:
Why people move to Mississippi (the affordability haven):
Why people leave Mississippi (the opportunity problem):
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Mississippi |
|---|---|---|---|
| Mississippi | 0-4.7% | $3,880 | Baseline |
| Tennessee | 0% | $0 | -$3,880 (less tax) |
| Alabama | 2-5% | $3,670 | -$210 (less tax) |
| Louisiana | 1.85-4.25% | $3,425 | -$455 (less tax) |
| Arkansas | 0-4.7% | $3,880 | $0 (same tax) |
Key insight: Mississippi's 0-4.7% progressive tax is competitive regionally. At $100K income, MS ties with Arkansas ($3,880), slightly trails Alabama ($3,670) and Louisiana ($3,425), but is $3,880 more expensive than Tennessee (0%). However, MS's advantage is lower cost of living: Jackson $180K median home vs Nashville $450K, Birmingham $275K, New Orleans $310K, Little Rock $235K.
Total tax burden comparison at $100K income + median home:
Result: Mississippi has the lowest total tax burden in the Deep South (8.8%) despite having income tax, because property tax is low and housing is incredibly cheap. Tennessee's 0% income tax is offset by brutal property tax ($4,500/year on Nashville $450K home vs $1,422 on Jackson $180K home). Break-even: MS is best for homeowners prioritizing affordability. TN wins for high earners ($200K+) who can afford Nashville housing. AL/LA competitive but slightly higher total burden.
The Tennessee question - is 0% tax worth moving to Nashville?
The salary difference - critical context:
Best use case for Mississippi:
For homeowners at $100K income: Tennessee saves $3,880/year state tax BUT costs $3,078 more property tax (TN 1% on $450K Nashville home vs MS 0.79% on $180K Jackson home) = net savings only $802/year. With Nashville housing $270K more expensive, payback period is 337 years. Mississippi wins for homeowners buying median-priced homes. Tennessee wins for: renters (save $3,880/year, avoid property tax), high earners $200K+ (income tax savings justify housing premium), professionals prioritizing Nashville job market (music, healthcare, logistics). But consider salaries: TN median $64K vs MS $49K. If you can earn $15K+ more in TN, move for income not taxes.
No Social Security tax - Mississippi fully exempts Social Security income at all ages and income levels (major advantage over many states). Military retirement pay also fully exempt. Other retirement income (pensions, 401k, IRA): Taxed at progressive rates (0-4.7%) BUT first $5,000 exempt so effective rate is low. Example: Age 66 with $30K SS + $40K pension = $70K total. SS fully exempt, pension taxed on $35K (after $5K exemption) = $1,645 MS tax (2.35% effective). Compare to Georgia ($2,156 at 5.39% flat) or Alabama ($1,500 after 65+ exemption). Mississippi is top-15 most tax-friendly state for retirees due to SS exemption + low rates + lowest cost of living nationally.
Yes, if you establish legitimate Mississippi residency (domicile test: MS voter registration, MS driver's license, physically present in MS). You'll pay only MS tax (3.88% at $100K) vs CA (5.76%) or TX (0%). Savings: $1,882/year vs CA, lose $3,880/year vs TX. But the real benefit is cost arbitrage: MS median home $180K vs Austin $520K, SF $1.3M. At $100K remote salary (coastal pay) + MS cost of living = massive purchasing power. Warning: MS salaries average $49K, so employers may adjust pay if you move to MS. Negotiate to keep full salary. Best strategy: get remote job at TX/CA company, then move to MS without salary adjustment - save $340K+ on housing + maintain high salary.
Depends on your life stage. Mississippi ranks 50th nationally in K-12 education and 49th in healthcare quality - direct result of low tax revenue. For young professionals with kids: probably not worth it (move to GA/TN/TX for better schools and $10-25K higher salaries). For retirees: absolutely worth it (Social Security exempt, lowest cost of living, mild climate, healthcare access adequate for most seniors with Medicare). For remote workers without kids: yes (arbitrage coastal salaries against MS cost, ignore education quality). For manufacturing/service workers: yes by necessity (MS jobs pay $49K median, living here on that income is manageable due to low cost, moving elsewhere means same low-wage job with higher expenses). The tax savings ($3,880/year at $100K) don't justify poor services if you're raising a family.
Mississippi has 8.8% total state/local tax burden at $100K income - lowest in the Deep South despite having income tax. At $100K with $180K Jackson home + $50K annual spending: $3,880 income (3.88%) + $1,422 property (0.79%) + $3,500 sales (7% flat statewide) = $8,802 total (8.8% of income). This beats Tennessee (9.2% despite 0% income tax due to high property tax), Alabama (9.5%), Louisiana (10.1%). Key: Mississippi's low housing costs ($180K vs $275-450K neighbors) mean low property tax dollars even at 0.79% rate. Sales tax is simple 7% statewide (no local add-ons unlike most states). But remember: MS median income is only $49K (lowest nationally), so most residents pay far less ($1,880 income + $800 property + $2,450 sales = $5,130 total at $49K income).
How we calculate: Mississippi uses progressive income tax with 3 brackets (0% on first $5,000, 4% on $5,000-$10,000, 4.7% on income over $10,000) applied to Mississippi taxable income (federal AGI minus Mississippi standard deduction of $2,300 for single filers in 2026, or itemized deductions if greater). Our calculator applies the marginal rates to each bracket and sums the total tax. We add federal income tax using official 2026 IRS brackets. Effective tax rates are calculated by dividing total tax by gross income. For comparison purposes, we show neighboring states' tax calculations at the same income levels using their official 2026 tax brackets and rates.
Data sources:
Verification: Mississippi's 0-4.7% progressive tax brackets verified against Mississippi Code §27-7-5 (Income Tax Rates) and MS Department of Revenue 2026 tax guidance published January 2026. 2022 tax reform phase-in (HB 531) verified against legislative text and MS Department of Revenue bulletins on transition timeline. Federal tax bracket accuracy verified against IRS Revenue Procedure 2025-58 (2026 inflation adjustments). Migration data sourced from IRS Statistics of Income (SOI) Tax Stats via Census Bureau. Property tax and sales tax rates verified against MS Department of Revenue 2025 annual report. Housing cost data from Zillow Home Value Index (January 2026). Median income and poverty data from U.S. Census Bureau American Community Survey 2023 5-year estimates.
Limitations: Assumes single filer with W-2 income only, standard deduction (not itemized), Mississippi full-year residency. Does not include: MS-specific deductions (limited compared to other states), federal tax credits (EITC, child tax credit - MS has high EITC usage due to low incomes), part-year or nonresident calculations, self-employment tax, property tax variations by county (ranges 0.5-1.1% effective rate, higher in urban counties, lower in rural Delta region), local economic development incentive zones (some areas have reduced property taxes to attract business). Retirement income calculations simplified - Social Security always exempt, military retirement always exempt, other pensions/401k/IRA taxed at 0-4.7% after $5K exemption. Does not account for potential 2026 tax reform transition to 4% flat (dependent on revenue triggers not yet met).
For complex situations: Consult a licensed Mississippi CPA or tax attorney, especially for: part-year residency (MS taxes income earned while MS resident based on domicile test), multi-state income allocation (border region workers in Memphis, New Orleans, Mobile metros), retirement income (military pension exemptions, Social Security exemption verification), rental property income (depreciation, passive loss rules), business income (MS C-corps taxed 4-5%, pass-throughs taxed at individual progressive rates), agricultural income (common in Delta region, special deductions for farm expenses), casino gambling income (reportable to IRS, taxed as regular income at 0-4.7%).
These calculations are estimates for informational purposes only and reflect 2026 Mississippi tax law (0-4.7% progressive rates across 3 brackets on MS taxable income). Tax situations vary based on filing status, deductions, credits, income types, and residency status. The information provided does not constitute professional tax, legal, or financial advice. Mississippi tax law is subject to change - the state enacted tax reform in 2022 (HB 531) to phase to a 4% flat tax, but the transition is tied to revenue triggers and timeline is uncertain. Does not include property tax variations by county (0.5-1.1% effective rates), MS-specific deductions (limited availability), or part-year/nonresident calculations. Social Security income is fully exempt in MS. Military retirement pay is fully exempt. Other retirement income (pensions, 401k, IRA) taxed at 0-4.7% after $5K exemption. Federal tax laws change annually. Always verify current rates with the Mississippi Department of Revenue and IRS, and consult a licensed tax professional for advice specific to your situation, especially for multi-state income, retirement planning, or establishing MS residency for remote work purposes.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
Contact: For corrections or questions, visit our contact page.
Last Updated: March 2026