What is the Mississippi income tax rate in 2026?

Mississippi has a flat 4.0% income tax rate in 2026, applied only to taxable income above $10,000. The first $10,000 of taxable income is tax-free. The rate was 4.4% in 2025 and is scheduled to decrease annually, reaching 3% by 2030 with a potential path to 0% if state revenue targets are met.

What is the Mississippi income tax phase-out schedule?

Mississippi is gradually eliminating its income tax: 5% in 2023, 4.7% in 2024, 4.4% in 2025, 4.0% in 2026, continuing down to 3% by 2030. After 2030, the rate can drop further toward 0% if general fund revenues exceed the prior year by at least 1.5%. This was enacted under HB 531 (2022) and subsequent legislation.

How does Mississippi compare to Alabama and Louisiana?

On an $80,000 salary filing single: Mississippi charges about $2,468 in state tax (4% above $10K exempt), Alabama's top rate is 5% costing roughly $3,218, and Louisiana's flat 3% rate costs about $2,025. Mississippi's rate is declining annually and may reach 0%, making it increasingly competitive. Tennessee has no income tax at all. None of these states have local income taxes.

Mississippi Paycheck Calculator 2026

4% flat rate above $10K — phasing to 3% by 2030, possibly 0%. First $10,000 of taxable income is tax-free.

Gross annual salary

Pay frequency

Filing status

Take-home per paycheck (biweekly)

$2,398.58

Gross pay (annual)$80,000

Deductions (annual)

Federal income tax−$9,049

MS state tax (4%)−$2,468

Social Security (6.2%)−$4,960

Medicare (1.45%)−$1,160

Summary

Annual take-home$62,363

Effective total tax rate22.0%

Effective MS state rate3.1%

You keep per dollar78 cents

Calculate for other states

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Mississippi Paycheck Calculator 2026 · Updated April 2026

How to Use This Calculator

Tab "Take-Home Pay"

Enter your gross annual salary, pay frequency, and filing status. The calculator deducts federal income tax, Mississippi's 4% flat state tax (on taxable income above $10,000), and FICA (Social Security + Medicare). Under "More options," add 401(k) contributions and health insurance premiums to see the impact of pre-tax deductions. You'll see your per-paycheck take-home and an annual summary with your effective tax rate.

Tab "Tax Breakdown"

A visual pie chart showing exactly where your money goes. You'll see four tax slices: federal income tax, MS state tax, Social Security, and Medicare. The chart also highlights that Mississippi is actively phasing out its income tax — from 4.0% in 2026 down to potentially 0%.

Tab "Compare Filing Status"

See how your take-home pay changes across Single vs Married Filing Jointly vs Head of Household. The comparison shows federal tax, MS state tax, and total take-home for each status. Because MS uses a flat rate, the state tax difference comes from the standard deduction ($2,300 single vs $4,600 MFJ) and personal exemption ($6,000 single vs $12,000 MFJ).

The Formulas

Federal Income Tax (2026 brackets, progressive):
1. Start with gross annual salary
2. Subtract pre-tax deductions (401k, health insurance)
3. Subtract standard deduction ($15,750 Single / $31,500 MFJ / $23,500 HoH)
4. Apply progressive brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%

Mississippi State Tax (flat rate with exempt amount):
MS taxable income = Gross salary - Standard deduction ($2,300 Single / $4,600 MFJ) - Personal exemption ($6,000 Single / $12,000 MFJ)
First $10,000 of taxable income = $0 tax
MS tax = (MS taxable income - $10,000) x 4.0%
No local income taxes apply anywhere in Mississippi.

FICA (Federal Insurance Contributions Act):
Social Security = 6.2% x min(Gross wages, $184,500)
Medicare = 1.45% x Gross wages
Additional Medicare = 0.9% x max(0, Gross wages - $200,000)

Take-Home Pay:
Net = Gross salary - Federal tax - MS state tax - Social Security - Medicare - Pre-tax deductions

All figures use 2026 IRS rates: SS wage base $184,500 (SSA), tax brackets from Rev. Proc. 2025-32, TCJA rates made permanent by OBBBA. Mississippi 4.0% rate per HB 531 (2022) phase-out schedule, effective January 1, 2026.

Example

Jasmine — Marketing Manager in Jackson, Mississippi

Filing Single. $80,000/year salary. Paid biweekly (26 paychecks). No pre-tax deductions.

Gross salary (annual)$80,000

Federal income tax-$9,049

MS state tax (4%)-$2,468

Social Security (6.2%)-$4,960

Medicare (1.45%)-$1,160

Annual take-home$62,363

Per paycheck (biweekly)$2,399

MS taxable income = $80,000 - $2,300 (SD) - $6,000 (PE) = $71,700. First $10,000 is exempt. MS tax = ($71,700 - $10,000) x 4% = $2,468. Jasmine keeps 78.0% of her gross salary. In 2025, the same income would have been taxed at 4.4%, costing $2,715 — the phase-out saves her $247/year. By 2030, the rate drops to 3%, saving even more. Compared to neighboring Tennessee (no state tax), the 4% rate costs $2,468 more — but Mississippi has one of the lowest costs of living in the country.

Frequently Asked Questions

What is Mississippi's income tax phase-out schedule?▼

Mississippi enacted HB 531 in 2022, setting a phased elimination of the state income tax. The rate dropped from 5% (2023) to 4.7% (2024) to 4.4% (2025) to 4.0% (2026). It continues declining each year, reaching 3% by 2030. After 2030, the rate can be reduced further toward 0% if general fund revenue exceeds the prior fiscal year by at least 1.5%. Governor Tate Reeves and the legislature have signaled strong intent to reach full elimination, following the model of states like Tennessee and Texas that have no income tax.

Why is the first $10,000 of taxable income tax-free?▼

Mississippi's tax code has historically used a bracket structure where the lowest bracket was taxed at 0%. When the state consolidated to a single flat rate, it kept the $10,000 zero-rate bracket as an effective exemption. This means after subtracting your standard deduction ($2,300 single / $4,600 MFJ) and personal exemption ($6,000 single / $12,000 MFJ), the first $10,000 of remaining income is still not taxed. Only income above that threshold is subject to the 4% rate. This structure benefits lower-income earners more than a pure flat tax would.

What are Mississippi's standard deduction and personal exemption?▼

Mississippi's standard deduction is $2,300 for single filers and $4,600 for married filing jointly. The personal exemption is $6,000 per person — $6,000 for single filers and $12,000 for married filing jointly (both spouses). Combined, a single filer shields $8,300 from state tax ($2,300 + $6,000), plus the additional $10,000 exempt bracket. An MFJ couple shields $16,600 ($4,600 + $12,000), plus the $10,000 exempt bracket. These are separate from federal deductions and cannot be itemized.

Does Mississippi have any local income taxes?▼

No. Mississippi does not impose any local, city, or county income taxes. Your only state-level income deduction is the flat 4% rate (2026) on taxable income above the $10,000 exempt amount. Whether you live in Jackson, Gulfport, Hattiesburg, Tupelo, or a rural county, the state income tax calculation is identical. This is simpler than states like Ohio (where many cities levy 1-3% municipal taxes) or New York (where NYC adds approximately 3.5%).

Could Mississippi really reach 0% income tax?▼

It's possible but not guaranteed. The legislation ties further rate reductions (below 3% after 2030) to revenue growth triggers — general fund revenue must exceed the prior year by at least 1.5%. If the state's economy grows steadily, the rate could reach 0% by the mid-2030s. Mississippi would join Texas, Tennessee, Florida, and a handful of other states with no income tax. However, if revenue stalls or declines (due to recession, federal policy changes, etc.), the phase-out could be paused. The state relies heavily on sales tax and federal transfers, so the shift requires sustained economic growth.

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