Mississippi has a flat 4.7% income tax on wages — and fully exempts Social Security and retirement income, making it one of the South's most retiree-friendly states.
Mississippi's standard deduction is $2,300 (single) / $4,600 (married) plus a $6,000 personal exemption for single filers ($12,000 married). Combined, single filers deduct $8,300 before the 4.7% rate applies. All Social Security income is exempt. Pensions, 401(k) distributions, and IRA withdrawals are fully exempt from Mississippi income tax. No MS city levies a local income tax on wages.
Mississippi has one of the lowest costs of living in the United States, and its income tax structure reflects a state economy where typical household incomes are below the national average. The flat 4.7% rate is straightforward to plan around. Mississippi's primary competitive advantage for retirees is the comprehensive exemption of retirement income: Social Security, pension income, 401(k) distributions, and IRA withdrawals are all fully exempt from Mississippi state income tax. A retiree pulling $40,000 from a 401(k) and $25,000 in Social Security pays zero Mississippi state income tax on either amount.
Mississippi's major employers include the military and healthcare. Keesler Air Force Base (Biloxi), Columbus AFB, and Camp Shelby employ large numbers of active-duty and civilian workers. The Gulf Coast economy (Biloxi, Gulfport, Pascagoula) includes the Port of Pascagoula, Ingalls Shipbuilding (one of the largest naval shipbuilders in the US), and casino hospitality. Jackson, the capital, is dominated by state government and healthcare. Ridgeland and Madison — northern suburbs of Jackson — have attracted insurance companies, banks, and regional headquarters operations.
Mississippi vs. Alabama: two comparable Southern states. Both Mississippi and Alabama have flat or near-flat income tax rates around 4.7–5%. Alabama allows a federal income tax deduction that lowers its effective rate; Mississippi has a more comprehensive retirement income exemption. Neither state has city income taxes. Both states have low costs of living. For workers comparing the two, the choice often comes down to job availability and personal preference rather than income tax differences.
Mississippi's personal exemption of $6,000 (single) is significantly more generous than its $2,300 standard deduction. Combined ($8,300), this effectively exempts the first $8,300 of income from state tax. For a minimum-wage worker earning $25,000, Mississippi's effective state tax rate is closer to 3.2% — the flat rate only kicks in above the deduction threshold.
Estimates only. MS: 4.7% flat, std deduction $2,300 (single) / $4,600 (married) + $6,000/$12,000 personal exemption. Consult a tax professional for advice.
| Gross Pay (this check) | $0.00 |
| Federal Income Tax | −$0.00 |
| Mississippi State Tax (flat 4.7%) | −$0.00 |
| Social Security (6.2%) | −$0.00 |
| Medicare (1.45%) | −$0.00 |
| Net Take-Home Pay | $0.00 |
Mississippi has a flat 4.7% income tax rate for 2026. The standard deduction is $2,300 (single) / $4,600 (married), plus a $6,000 personal exemption for single filers ($12,000 married). Combined deductions of $8,300 (single) / $16,600 (married) mean the 4.7% rate applies only above those thresholds.
No to both. Mississippi fully exempts Social Security benefits from state income tax for all recipients. Mississippi also fully exempts pension income, 401(k) distributions, IRA withdrawals, and most other retirement income. A retiree in Mississippi collecting both Social Security and pension income typically owes zero Mississippi state income tax on either source.
No. Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, and all other Mississippi municipalities do not levy local income taxes on wages. Mississippi workers pay only the flat 4.7% state rate with no city surcharge.
Tennessee has no income tax on wages — the best outcome. Alabama has a similar top rate (5%) but allows a federal income tax deduction that lowers the effective state rate. Mississippi at 4.7% is slightly lower than Alabama's 5% top rate, with a generous retirement income exemption. For wage earners, Mississippi and Alabama are comparable; for retirees, Mississippi's comprehensive retirement income exemption gives it an edge over Alabama.
On $55,000 (single, biweekly), Mississippi withholds approximately $88–$95 per paycheck in state income tax — roughly $2,250–$2,450 annually. After the $8,300 combined standard deduction and personal exemption, taxable income is about $46,700. At 4.7% flat, the annual state tax is roughly $2,195.
Active duty military pay earned while stationed in Mississippi is exempt from Mississippi income tax under federal law (Servicemembers Civil Relief Act). Mississippi also exempts military retirement pay from state income tax — retirees from Keesler AFB, Columbus AFB, Camp Shelby, or any other installation pay no Mississippi state tax on their military pension.
Mississippi taxes overtime and tips as ordinary income at the 4.7% flat rate. The federal exemptions under the One Big Beautiful Bill cover only federal income tax — Mississippi has not enacted state-level equivalents. Casino workers on the Gulf Coast who receive significant tip income should note that Mississippi taxes those tips while the federal exemption (up to $25,000) reduces only the federal portion. See our Tips Tax Calculator for the federal savings.
Yes — Mississippi is consistently ranked among the most tax-friendly states for retirees. Social Security is fully exempt. All pension and retirement distributions are fully exempt. The flat 4.7% rate on wages is moderate. Mississippi's low cost of living (consistently one of the lowest in the US) amplifies purchasing power. The primary drawbacks are lower average wages and the economic challenges that come with Mississippi's lower median household income.