Mississippi taxes nothing on the first $10,000 and 4% on everything above, down from 4.4% last year. The rate is legislated to keep falling every year through 2030, with full elimination possible after that.
| Gross pay | — |
| Federal income tax | — |
| Social Security6.2% up to $184,500 | — |
| Medicare1.45%, no cap | — |
| State income tax | — |
| 401(k) contribution | — |
| Health and HSA | — |
Useful if you are comparing a job that pays monthly against one that pays every two weeks, or working out what a raise is worth per paycheck.
| Pay schedule | Gross | Take-home |
|---|
Mississippi's rate dropped from 4.4% to 4% on 1 January 2026 as one step in a multi-year phase-down. The legislated schedule continues: 3.75% in 2027, 3.5% in 2028, 3.25% in 2029 and 3% in 2030.
Beyond 2030, statute provides for further reductions and eventual elimination of the individual income tax altogether if specified revenue triggers are met. Mississippi is one of a small group of states — with Oklahoma and, in a slower form, Indiana — where full repeal is an explicit legislative objective rather than rhetoric.
For anyone planning a move or a multi-year financial decision, the schedule matters more than the current rate. Mississippi in 2030 will look materially different from Mississippi today.
The first $10,000 of taxable income is untaxed entirely, functioning as a zero bracket rather than a deduction. Above it there is a single 4% rate with no further progression.
The standard deduction is small — $2,300 for a single filer, $4,600 for a couple. What Mississippi offers instead is a large personal exemption: $6,000 for a single filer, $12,000 for a couple, plus $1,500 per dependent.
Stacked together, a single filer sees roughly $18,300 of income removed before any tax applies. For a married couple with two children the figure approaches $30,000. At Mississippi's income levels that exempts a substantial share of households from income tax entirely.
Mississippi exempts qualified retirement income in full — pensions, 401(k) and IRA withdrawals, annuities — with no age threshold or dollar cap beyond the requirement that distributions be qualified. Social Security is exempt separately.
Very few states go this far. Combined with the lowest cost of living in the country and a rate heading toward zero, Mississippi's position for retirees is stronger than its reputation suggests.
No Mississippi municipality levies an income tax.
Yes. It reached 4% in 2026 and is legislated to fall to 3.75%, 3.5%, 3.25% and 3% in each year through 2030, with possible elimination afterwards if revenue triggers are met.
Yes. It functions as a zero bracket, separate from and on top of the standard deduction and personal exemption.
No. Qualified retirement income is fully exempt with no age or dollar limit, and Social Security is exempt separately.
For a single filer, roughly $18,300 once the zero bracket, standard deduction and personal exemption are combined. For a married couple with two children, close to $30,000.