Mississippi Income Tax Calculator

How to Use This Mississippi Income Tax Calculator

This Mississippi income tax calculator estimates your annual MS state and federal tax liability for 2025 and 2026. Enter your gross wages, filing status, and any pre-tax deductions above. Mississippi applies a flat 4.0% income tax rate after deducting the Mississippi standard deduction and personal exemption.

For per-paycheck withholding estimates, use the Mississippi paycheck calculator. To compare Mississippi's tax burden against neighboring states, use the general income tax calculator.

Mississippi Income Tax — Flat Rate Structure

Mississippi uses a flat 4.0% income tax rate for 2026. Unlike progressive systems, every dollar of Mississippi taxable income is taxed at the same rate. Mississippi taxable income is calculated as:

• Gross wages (after pre-tax 401(k), health insurance, HSA)
• Minus Mississippi standard deduction: $2,300 (single) / $4,600 (MFJ)
• Minus personal exemption: $6,000 (single) / $12,000 (MFJ) + $1,500 per dependent
• Result × 4.0% = Mississippi income tax

Note that Mississippi's standard deduction ($2,300 single) is much smaller than the federal standard deduction ($14,600 single in 2026). This means more of your income is subject to Mississippi tax than to federal tax at comparable gross wages.

Mississippi's Tax Reform — From Multi-Bracket to Flat 4%

Mississippi enacted landmark income tax reform (HB 531) that transformed its tax structure:

• Old system (pre-2022): Four brackets — 0% on income below $5,000, 3% on $5,000–$10,000, 4% on $10,000–$15,000, 5% above $15,000.
• 2023–2024: The lower brackets were eliminated; all income taxed at 5%, then cut to 4.7%.
• 2025–2026: Rate cut to approximately 4.4% then 4.0% through scheduled annual reductions.
• 2030 target: Final flat rate of 4% — at which point Mississippi will have one of the lowest income tax rates in the South.

The reform benefits middle and upper-income earners most significantly, as they previously were fully in the 5% bracket. For a resident earning $75,000, the reduction from 5% to 4% saves approximately $668 per year in MS state tax.

Step-by-Step Example — $75,000 Mississippi Single Filer (2026)

1. Gross wages: $75,000
2. Federal standard deduction: −$16,100 → federal taxable income: $58,900. Federal income tax: ≈ $6,565.
3. FICA: $75,000 × 7.65% = $5,738.
4. MS standard deduction: −$2,300
5. MS personal exemption: −$6,000 → MS taxable income: $66,700
6. MS income tax: 4.0% × $66,700 ≈ $2,668
7. Total taxes: $6,565 + $5,738 + $2,668 = $14,971
8. Annual net income: $75,000 − $14,971 = $60,029

Mississippi's Retirement Income Exemption

Mississippi stands out as one of the most retiree-friendly tax states in the nation:

• Social Security: Fully exempt from Mississippi income tax.
• Public employee pensions: Fully exempt — includes state, county, and municipal government pensions.
• Military retirement pay: Fully exempt.
• Private pensions and 401(k)/IRA distributions: Fully exempt from MS income tax when received as retirement income by individuals age 59½ or older.

For retirees, Mississippi's effective income tax rate on total income is often 0% — a dramatic advantage compared to states that tax retirement distributions at full rates.

How to Reduce Your Mississippi Annual Tax Liability

• Maximize traditional 401(k) contributions — $23,500 in 2026 ($31,000 if age 50+). At the 4.0% rate, maxing a 401(k) saves approximately $940 in MS state tax per year (plus federal savings).
• Contribute to an HSA — $4,300 (self-only) or $8,550 (family). Reduces federal and MS state taxable income.
• Claim all personal and dependent exemptions— MS's $6,000 personal exemption and $1,500 per dependent are valuable deductions at MS's rates. Ensure your state withholding form (89-350) reflects all exemptions.
• Plan Roth conversions early — if you plan to retire in Mississippi, the exemption of retirement income means paying tax now on Roth conversions (at 4.0%) may be worth it to build a tax-free retirement income stream. However, traditional distributions are also MS-exempt, so evaluate your specific situation.

Tax Disclaimer

This calculator provides estimates for informational purposes only. It is not tax advice. Mississippi's income tax rate is scheduled to decline annually through 2030 — verify the current rate with the Mississippi Department of Revenue before filing. Federal brackets, FICA wage bases, and standard deduction amounts also change each year. Consult a qualified Mississippi-licensed CPA or tax professional for guidance specific to your situation.