Mississippi Income Tax Rate
4.00% flat rate
Everyone pays 4.00% of taxable income, regardless of income level or filing status.
Key Facts That Affect Your Take-Home Pay
- Mississippi taxes income at a single flat 4% rate after a $2,300 standard deduction ($4,600 for married couples filing jointly), making its income tax one of the simplest in the country.
- Because the $2,300 standard deduction is small, Mississippi's 4% rate applies to almost all of a typical salary: a $75,000 earner pays $2,908, an effective rate of 3.9%, very close to the flat 4%.
- Mississippi does not collect income taxes from cities or counties, ensuring consistent tax calculations regardless of work location. All Mississippi residents face the same flat 4% state rate.
- Mississippi does not impose state income tax on Social Security benefits or retirement distributions (pensions, 401(k) withdrawals, IRA distributions) for residents, making the state attractive for retirees despite its income tax. However, property taxes and sales taxes in Mississippi can be significant, offsetting some retirement benefits.
What People Get Wrong
“A 4% flat tax means I pay 4% of my salary in Mississippi.”
Mississippi's 4% applies after the $2,300 standard deduction, so a $75,000 earner pays $2,908 (3.9% of salary) and a $150,000 earner pays $5,908 (3.9%). Because the deduction is small, the effective rate sits just under the flat 4% at most salaries.
“Mississippi has low taxes because it's a low-income state.”
Mississippi's flat 4% income tax is higher than flat-tax states like Pennsylvania (3.07%), Indiana (2.95%), or North Carolina (3.99%). Additionally, Mississippi's 7% state sales tax (plus local additions in some areas) is among the higher state sales tax rates in the nation Lower-income residents pay a large percentage of income to sales tax, while higher earners pay 4% income tax. The overall tax burden can be significant.
“No local taxes means Mississippi is cheaper than other states.”
While Mississippi avoids local income tax complications, the flat 4% income tax rate combined with high sales taxes (7% state rate, one of the highest in the nation) and property taxes can create a significant tax burden. A big spender in Mississippi might pay more in sales tax than they'd pay in income tax in some other states. Factor in all taxes when comparing Mississippi to other states.
