Mississippi Paycheck Calculator: What a Flat Tax Means for Your Take-Home
Mississippi’s employed workforce of approximately 1,190,000 labors in a wide range of industries, wage levels, and paycheck situations. But the same withholding rules apply across the board.
In fact, no matter how much you earn, your Mississippi state income tax will always be taxed at the same rate. That makes one layer of your paycheck more predictable, but the full picture still involves several moving parts — federal income tax, FICA, and the state’s own withholding form on top of your W-4.
If you want to learn about what comes out of your paycheck and why, read on for a clearer picture of exactly where your money goes before you receive your take-home pay in Mississippi.
Disclaimer: This page is for informational purposes only and is not tax advice. Tax rules can change, and individual situations vary. For personal tax questions, consider speaking with a qualified tax professional.
How your Mississippi paycheck is calculated: A breakdown
Mississippi taxes all of your taxable income after your first $10,000 at a single flat rate — 4.4% for Tax Year 2025 and 4% for Tax Year 2026. That same rate applies whether you earn $35,000 or $135,000. The rate applies to taxable income after deductions, not your gross pay, which means your actual tax bill is typically lower than a quick percentage calculation might suggest. On top of the state flat tax, your pay stub also reflects federal income tax, Social Security, and Medicare, so understanding each layer separately makes the full picture easier to read.
Part 1: Begin with your gross pay
Gross pay is everything you earn before any deductions are taken out. For hourly workers, that means your regular hours plus any overtime. For salaried employees, it is your fixed pay for the period.
Mississippi follows the federal minimum wage, currently set at $7.25 per hour as of July 24, 2009. The state has no minimum wage law of its own, and Mississippi Code §17-1-51 prohibits cities and counties from setting local minimum wage rates above the federal floor, so the minimum wage is the same in every city and county of the state.
Part 2: Your employer calculates federal withholding
Your W-4 is a form you fill out for your employer before you receive your first paycheck. In this form, you provide information that tells your employer how much federal income tax to withhold from each paycheck. This information includes your filing status, other sources of income, and dependents, which can change how much you’re likely to be taxed in your federal return. You can also choose to ask your employer to withhold any amount that you want.
Federal withholding uses progressive brackets for Tax Year 2025, meaning higher portions of income are taxed at higher rates. This is typically the largest single deduction on a paycheck.
In Mississippi, you will also complete the Mississippi Employee’s Withholding Exemption Certificate, Form 89-350, alongside your federal W-4. This form sets your state income tax withholding separately. If you do not submit Form 89-350, your employer defaults to the highest withholding rate with no exemptions claimed, which means more money withheld than you may actually owe.
Common situations that may affect your W-4 and Form 89-350
- Starting your first job. Complete both your federal W-4 and Mississippi Form 89-350 before your first paycheck is processed.
- Getting married. Update both forms to reflect your new filing status, which may change the amount withheld each pay period.
- Having a child. Review your Mississippi Form 89-350 to claim the applicable dependent exemption, which may reduce withholding.
- Working two jobs. Account for combined income on your W-4 to avoid under-withholding across both employers. The IRS provides a step-by-step estimator tool to help calculate this.
Part 3: Calculate Social Security and Medicare withholding (FICA)
Social Security and Medicare taxes, together called FICA (Federal Insurance Contributions Act), are withheld from every paycheck at a fixed rate regardless of which state you live in.
- Social Security: 6.2% of gross wages (up to the annual wage base); your employer matches this amount.
- Medicare: 1.45% on all covered wages with no wage ceiling; your employer matches this amount.
- Additional Medicare surcharge: Employers withhold an additional 0.9% once an employee’s wages exceed $200,000 in a calendar year, regardless of filing status. Final liability is reconciled at filing. This surcharge is not employer-matched.
Combined with Mississippi’s flat state income tax, FICA means most workers see roughly 11.65% of gross pay withheld for these two layers alone before federal income tax is even applied.
Part 4: Apply Mississippi state income tax
Mississippi taxes all taxable income above $10,000 at a flat 4% rate for Tax Year 2026. Whether you earn $40,000 or $140,000, that same rate applies to every dollar of taxable income above that threshold. The first $10,000 of taxable income is not taxed at the state level at all.
The 4% rate applies to taxable income, not gross pay. Before the rate is applied, Mississippi allows a standard deduction and a personal exemption that depend on your filing status:
- Single filers: $2,300 standard deduction with a $6,000 personal exemption.
- Married couples filing jointly: $4,600 standard deduction and $12,000 exemption.
- Heads of family: $3,400 standard deduction and $9,500 personal exemption.
No matter your filing status, you also receive a $1,500 exemption for every dependent.
Note: The 4% rate is the current withholding rate for Tax Year 2026. If you are filing a 2025 return, the applicable rate is 4.4%. The rate is scheduled to continue declining under the Build-Up Mississippi Act (HB 1, signed March 27, 2025). In 2027, the rate is expected to drop to roughly 3.75%. Future rates are subject to change.
Mississippi does not levy a local income tax on wages. Mississippi Code §17-1-51 expressly prohibits municipalities and counties from enacting local income tax ordinances, so there is no additional city or county withholding on your wages to factor into your paycheck calculation. Keep in mind, municipalities may charge payroll deductions other than income tax, and other deductions may exist.
For full year-by-year guidance, visit the Mississippi Department of Revenue.
Mississippi flat income tax rate (phase-down schedule)
| Tax year | Flat rate (above $10,000) |
|---|---|
| 2024 | 4.7% |
| 2025 | 4.4% |
| 2026 | 4.0% |
| 2027 (scheduled) | 3.75% |
Source: Mississippi Department of Revenue. Rates apply to taxable income above $10,000 after the standard deduction and personal exemption. Future-year rates are scheduled under HB 1 and subject to legislative change.
Where does your income fall in Mississippi?
Median household income provides a useful benchmark for understanding where your earnings sit relative to other Mississippi workers.
Median household income in Mississippi
$59,127
Source: U.S. Census Bureau, 2024 American Community Survey, 1-Year Estimates
Median household income in Mississippi by household type
| Household type | Median income |
|---|---|
| Families | $76,879 |
| Married-couple families | $98,570 |
| Nonfamily households | $32,115 |
Source: U.S. Census Bureau, 2024 American Community Survey, 1-Year Estimates.
For a single filer earning the state median, EarnIn Calculator estimates suggest weekly withholdings of roughly $214, including about $98 weekly in federal income tax and around $29 in Mississippi state income tax.
That is a relatively modest state tax bill, partly because Mississippi’s standard deductions and exemptions reduce the taxable base before the rate is ever applied.
4 ways your take-home pay can change
Your gross pay sets the ceiling, but several factors determine how much of it you actually keep. Here are four areas where your choices can make a measurable difference.
W-4 and Form 89-350 selections
The exemptions and filing status you claim on both your federal W-4 and Mississippi Form 89-350 directly affect how much is withheld each pay period. Claiming fewer exemptions means more withheld upfront; claiming more means less withheld but a potentially larger balance due at filing.
Retirement contributions
Mississippi generally uses federal adjusted gross income (AGI) as a starting point, so pre-tax contributions like 401(k)s and traditional IRAs may reduce your taxable income at the state level.
Health savings and flexible spending accounts
Mississippi generally follows federal tax treatment for HSAs and FSAs. Contributions made through payroll are typically excluded from taxable income at both the federal and state level. Withdrawals used for qualified medical expenses are also typically not taxed.
Pay frequency
Whether you are paid weekly, biweekly, or monthly affects how taxes are withheld from each paycheck. More frequent pay periods generally result in smaller withholding amounts per paycheck, even though your total annual tax liability typically remains the same.
Remember, individual circumstances vary. For your specific situation, you may need to consult a qualified tax professional.
Practical Mississippi paycheck reminders
Submit Form 89-350. If you do not submit the Mississippi Employee's Withholding Exemption Certificate, your employer defaults to the highest withholding rate with no exemptions, which may result in more tax withheld than necessary.
Review your pay stubs regularly. Confirm that both federal and state withholding amounts reflect your current Form W-4 and Form 89-350 elections.
Update your forms after life events. Marriage, divorce, having a child, or taking a second job may all change how much you should have withheld each period.
Watch the phase-down schedule. Mississippi's flat rate is set to continue declining through the next several years under the Build-Up Mississippi Act. Reviewing your withholding each year may keep your elections current with the changing rate.
Why does take-home pay feel different in Mississippi?
Mississippi’s flat state income tax keeps one part of your paycheck math simple. But the rate by itself doesn’t capture everything you owe — the standard deduction, personal exemption, and dependent exemptions all reduce the taxable base before the flat rate ever applies. That is why two workers earning the same gross pay can see meaningfully different state withholding depending on filing status and dependents.
For a single filer earning $60,000, the combined withholding picture looks roughly like this:
- FICA: 7.65% of gross wages = approximately $4,590
- Mississippi income tax: Approximately $1,908 after the standard deduction and personal exemption
- Federal income tax: Varies by W-4 selections
On top of taxes, Mississippi’s cost of living is among the lowest in the country — which can make take-home pay stretch further than the headline numbers suggest. Average rent in Jackson sits well below larger metros, and gas and groceries typically run cheaper than coastal markets.
Budget around your Mississippi paycheck with our financial calculators
EarnIn’s financial calculators1 can help you estimate how your Mississippi paycheck may cover rent and bills, whether in Jackson or Gulfport.
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Mississippi paycheck vs. other states
The table below puts Mississippi’s paycheck picture alongside one state with no income tax and one with a progressive income tax structure. The data is presented as context only. Cost-of-living figures vary by city and change over time.
- State income tax: 1%–12.3% (progressive)
- Est. state tax on $60K (single): ~$1,953
Typical metro costs (Los Angeles):
- 1-bedroom rent (724 sq ft): ~$2,532/month
- Monthly transit pass: ~$100
- Gas (per gallon): ~$4.90
- Dozen eggs: ~$7.07
- State income tax: 4% in 2026 / 4.4% in 2025 (flat, above $10,000)
- Est. state tax on $60K (single): ~$1,908
Typical metro costs (Jackson):
- 1-bedroom rent (674 sq ft): ~$983/month
- Monthly transit pass: car-dependent; no standard pass
- Gas (per gallon): ~$3.16
- Dozen eggs: ~$4.22
- No state income tax
- Est. state tax on $60K: $0
Typical metro costs (Dallas):
- 1-bedroom rent (721 sq ft): ~$1,406/month
- Monthly transit pass: ~$126
- Gas (per gallon): ~$3.02
- Dozen eggs: ~$4.61
Frequently asked questions
What income is taxable in Mississippi?
Does Mississippi have a flat income tax?
What percentage of my Mississippi paycheck goes to state income tax?
Does Mississippi tax retirement income?
What happens if I don’t file Form 89-350?
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
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¹The calculations provided are based on estimates and should be used for informational purposes only. Please be aware that comparisons may not be 100% accurate. The insights and data presented do not constitute financial advice, and we recommend consulting with a qualified financial advisor for personalized guidance.
