Mississippi Paycheck Calculator

Mississippi has been reducing its income tax rate through annual cuts and is transitioning toward a flat 4% rate by 2026. In 2026, the flat rate is 4.7% on all taxable income above $10,000. Income up to $10,000 is taxed at lower rates — 0% on the first $5,000 and 4% on $5,001–$10,000 — but these brackets have minimal real-world impact since the $5,000 standard deduction (for single filers) covers most of the lower brackets for full-time workers.

Mississippi is moving toward a fully flat 4% rate, with final reductions scheduled for completion by 2026. Jackson, Gulfport, Biloxi, and all Mississippi municipalities have no local income taxes. Mississippi has no SDI program.

Mississippi follows federal adjusted gross income as the starting point for state taxation. Pre-tax 401(k) contributions reduce Mississippi taxable income. Mississippi has made this tax reform one of its key economic development initiatives, aiming to compete more effectively with neighboring no-income-tax states like Tennessee and Alabama (which allows a federal tax deduction).