Mississippi Salary & Paycheck Calculator 2026

Withholding on a Mississippi paycheck flows through Form 89-350, the state's withholding exemption certificate. Mississippi's income-tax structure has real progressive elements - 0% on the first $10,000 of taxable income and 4.0% above it for 2026 - and they matter more than the headline rate does, because two subtractions come first. The $6,000 exemption on Form 80-105 line 11 is larger than the $2,300 standard deduction beside it, and almost every summary of Mississippi mentions only the deduction. A single filer therefore shelters $18,300 and pays an effective state rate of about 2.8%-3.5% across $60K-$150K. No local income tax in Jackson, Gulfport, Hattiesburg, or anywhere else in Mississippi. The rate keeps falling: 3.75% in 2027, 3.5% in 2028, 3.25% in 2029 under HB 1 of 2025.

Take-home math at three tiers, Mississippi single filer 2026: $60,000 → about $5,020 federal + $4,590 FICA + $1,668 MS state (after the $6,000 exemption, the $2,300 standard deduction and the 0% first-$10K band) = $11,278 deductions, take-home $48,722 (81%). $100,000 → $13,170 federal + $7,650 FICA + $3,268 MS = $24,088, take-home $75,912 (76%). $150,000 → $24,734 federal + $11,475 FICA + $5,268 MS = $41,477, take-home $108,523 (72%). Mississippi's effective rates run higher than peer Southern states like Tennessee (0%) but lower than Alabama (5% effective) or South Carolina (6.0%). The lower cost-of-living (Jackson runs 12% below national average) compounds the take-home advantage.

Mississippi's tax structure is among the simpler in the country: flat top rate, federal-conforming for some deductions but not the standard deduction, no local income tax, no estate tax, no inheritance tax. Property tax averages 0.65% effective — among the lower rates in the US. Sales tax stacks 7% state + up to 1% local for ceilings around 8% — moderate. Mississippi exempts Social Security from state tax fully. The state also fully exempts qualified retirement income (401(k) withdrawals, IRA distributions, pensions) for retirees age 65+ — making Mississippi one of the more retiree-friendly Southern states despite the moderate income-tax burden during work years.

The single highest-leverage tactic for Mississippi W-2 earners is maxing pre-tax 401(k) and HSA, since Mississippi conforms to federal pre-tax treatment. A $24,500 401(k) deferral saves about $980 in Mississippi state tax at the 4.0% 2026 rate. The bigger long-term lever for Mississippi residents is the retirement-income exemption — qualified retirement distributions (Social Security, 401(k), IRA, pensions) are fully exempt from 59½, not 65, which is earlier than most states that offer anything comparable and makes Mississippi notably retiree-friendly. Pre-retirement workers should plan to keep traditional retirement balances large enough to exploit it. Mississippi MACS 529 contributions earn a state deduction up to $10,000 single / $20,000 MFJ per beneficiary.