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The Mississippi Paycheck Calculator estimates your take-home pay after federal income taxes, Mississippi state income tax, and FICA contributions. Mississippi recently simplified its income tax structure for 2024, exempting the first $10,000 of taxable income entirely and applying a flat 4.7% rate on taxable income above that threshold. This replaces the previous graduated system that had rates of 0%, 3%, 4%, and 5%. The simplification makes Mississippi one of the more straightforward states for paycheck calculation. Mississippi provides a standard deduction of $2,300 for single filers and $4,600 for married filing jointly. Personal exemptions of $6,000 for single filers and $12,000 for married filing jointly further reduce taxable income significantly. Combined with the $10,000 exemption on the first portion of taxable income, Mississippi effectively shields a substantial amount of income from state tax, particularly benefiting lower and middle-income earners. Mississippi does not impose any local or city income taxes. The state also has no additional payroll taxes beyond the standard federal FICA contributions. Mississippi is one of the lowest-cost-of-living states in the nation, and the moderate income tax structure further enhances purchasing power for workers. The state does not tax Social Security benefits or qualified retirement income up to certain limits. This calculator serves employees across Mississippi's economy including manufacturing (automotive plants for Toyota, Nissan), military (Keesler Air Force Base, Camp Shelby, Naval Construction Battalion Center), healthcare, agriculture, gaming (Gulf Coast casinos), shipbuilding (Ingalls Shipbuilding in Pascagoula), and education. The combination of no local taxes, generous exemptions, and a simplified rate structure makes Mississippi one of the more tax-friendly states for workers.
Net Pay = Gross Pay - Federal Tax - Mississippi State Tax (4.7% on income over $10K after deductions) - FICA Mississippi State Tax (2024): First $10,000 of taxable income: 0% (exempt) Over $10,000: 4.7% Standard Deduction: $2,300 single | $4,600 MFJ Personal Exemption: $6,000 single | $12,000 MFJ Dependent Exemption: $1,500 each FICA: 6.2% SS + 1.45% Medicare + 0.9% over $200K
- 1Enter your gross pay and pay frequency. Mississippi's economy includes automotive manufacturing (Toyota in Blue Springs, Nissan in Canton), military installations (Keesler AFB in Biloxi, Camp Shelby, Stennis Space Center), shipbuilding (Ingalls Shipbuilding in Pascagoula), gaming and tourism (Gulf Coast), agriculture, and healthcare. The state has the lowest cost of living in the nation, making take-home pay stretch further.
- 2Federal income tax is calculated based on W-4 elections using 2024 federal brackets from 10% to 37%. Pre-tax deductions such as 401(k) contributions and health insurance premiums reduce federal taxable income.
- 3Mississippi state income tax is calculated by first applying the standard deduction ($2,300 single) and personal exemption ($6,000 single), then exempting the first $10,000 of remaining taxable income. The 4.7% rate applies only to taxable income above $10,000. For a single filer earning $50,000, Mississippi taxable income after deductions and exemptions is approximately $41,700, of which the first $10,000 is exempt, leaving $31,700 taxed at 4.7% for approximately $1,490.
- 4FICA taxes are calculated at standard federal rates: 6.2% for Social Security on wages up to $168,600 and 1.45% for Medicare on all wages, plus 0.9% additional Medicare on wages over $200,000.
- 5The calculator totals all deductions. Mississippi does not impose any local income taxes, city taxes, or additional state payroll taxes. The state tax plus FICA are the only paycheck deductions beyond federal tax.
- 6Review results noting Mississippi's effective low tax burden. The combination of the $10,000 exemption, generous personal exemptions ($6,000 single), and the 4.7% rate means that the effective Mississippi tax rate for most workers is well below 4.7%. A single filer earning $60,000 pays approximately $1,961 in state tax, an effective rate of about 3.3%.
- 7Verify withholding using Mississippi Form 89-350. Mississippi updates its withholding tables to reflect the simplified rate structure. Workers should ensure their withholding form accurately reflects their filing status and exemptions.
Gross biweekly: $2,769.23. Federal withholding: ~$248. Mississippi tax: after $2,300 deduction and $6,000 exemption, taxable $63,700. First $10K exempt, remaining $53,700 x 4.7% = $2,524/yr or $97.08/period. FICA: $171.69 + $40.15 = $211.84. Total deductions: ~$556.92. Net pay: ~$2,212.31.
Gross biweekly: $1,461.54. Federal withholding: ~$56. Mississippi tax: after deductions, taxable $29,700. First $10K exempt, $19,700 x 4.7% = $926/yr or $35.62/period. FICA: $90.62 + $21.19 = $111.81. Total deductions: ~$203.43. Net pay: ~$1,258.11.
Gross biweekly: $2,230.77. Federal withholding: ~$50. Mississippi tax: after $4,600 deduction, $12,000 exemption, $3,000 dependents, taxable $38,400. First $10K exempt, $28,400 x 4.7% = $1,335/yr or $51.35/period. FICA: $138.31 + $32.35 = $170.66. Total deductions: ~$272.01. Net pay: ~$1,958.76.
Gross biweekly: $2,500. Federal withholding: ~$215. Mississippi tax: after deductions, taxable $56,700. First $10K exempt, $46,700 x 4.7% = $2,195/yr or $84.42/period. FICA: $155 + $36.25 = $191.25. Total deductions: ~$490.67. Net pay: ~$2,009.33.
Automotive manufacturing workers at the Toyota plant in Blue Springs and the Nissan plant in Canton use this calculator to estimate take-home pay. Mississippi actively recruited these manufacturers with tax incentives, and the plants employ thousands of workers at competitive wages. The state's low tax burden combined with the lowest cost of living in the nation means these workers enjoy significant purchasing power.
Military personnel and civilian employees at Keesler Air Force Base in Biloxi, Camp Shelby near Hattiesburg, the Naval Construction Battalion Center in Gulfport, and Stennis Space Center use this calculator to understand Mississippi's tax obligations. Mississippi exempts military retirement pay from state tax, making it an attractive retirement destination for veterans.
Gulf Coast gaming and tourism workers at casinos in Biloxi, Gulfport, and Tunica use this calculator. The casino industry is a major employer on the Mississippi Gulf Coast and in the Delta region. Many casino workers earn moderate wages where the $10,000 exemption and generous personal exemptions result in minimal state tax liability.
Shipbuilding workers at Ingalls Shipbuilding in Pascagoula, which builds Navy destroyers and amphibious assault ships, use this calculator. Ingalls is one of Mississippi's largest private employers, and its workers earn competitive industrial wages. The simplified tax structure makes paycheck estimation straightforward for these workers.
Gulf Coast Casino Workers and Tips
Mississippi's Gulf Coast casinos in Biloxi, Gulfport, and the Tunica region employ thousands of workers, many of whom receive tips as a significant portion of their income. All tips must be reported as income for both federal and Mississippi tax purposes. Casino workers should include their total compensation including tips when estimating their paycheck, as unreported tips can lead to tax liability surprises at filing time.
Cross-Border Workers with Tennessee and Alabama
Workers living in Mississippi but working in Tennessee enjoy the fact that Tennessee has no income tax on wages. However, they still owe Mississippi tax on all their income as Mississippi residents. Workers living in Mississippi and working in Alabama must file in both states. Mississippi provides a credit for taxes paid to other states to prevent double taxation. The reciprocal credit typically results in paying the higher of the two states' rates.
Agricultural and Seasonal Workers
Mississippi's agriculture sector (poultry, catfish, cotton, soybeans) creates seasonal income patterns for many workers. The $10,000 exemption and generous personal exemptions mean that many seasonal agricultural workers with lower annual incomes owe minimal Mississippi state tax. A seasonal worker earning $25,000 annually would owe approximately $207 in Mississippi state tax after all deductions and exemptions.
| Component | Amount / Rate | Notes |
|---|---|---|
| First $10,000 Taxable Income | 0% (Exempt) | After deductions and personal exemptions |
| Income Over $10,000 | 4.7% | Flat rate on remaining taxable income |
| Standard Deduction (Single) | $2,300 | Reduces gross income |
| Standard Deduction (MFJ) | $4,600 | Reduces gross income |
| Personal Exemption (Single) | $6,000 | Per filer |
| Personal Exemption (MFJ) | $12,000 | Combined for both spouses |
| Dependent Exemption | $1,500 each | Per qualifying dependent |
How does Mississippi's new tax system work?
For 2024, Mississippi exempts the first $10,000 of taxable income (after deductions and personal exemptions) from state tax entirely. Income above $10,000 is taxed at a flat 4.7% rate. This replaced the previous graduated system. The state is phasing toward further simplification and potential rate reductions in future years.
Does Mississippi have local income taxes?
No. Mississippi does not impose any local, city, or county income taxes. The state tax is the only income tax on your paycheck. This simplifies the calculation compared to states with local taxes.
Does Mississippi tax Social Security benefits?
No. Mississippi fully exempts Social Security benefits from state income tax. This applies regardless of your total income level.
Does Mississippi tax retirement income?
Mississippi exempts Social Security, Railroad Retirement, and income from qualified retirement plans (401(k), IRA, pensions) from state tax to a significant degree. The state is one of the most retirement-friendly in the nation for tax purposes.
How does Mississippi compare to neighboring states?
Mississippi's effective tax rate is lower than Alabama's (which has rates up to 5% plus local occupational taxes), Louisiana's (1.85-4.25%), and Arkansas's (2-4.4%). Tennessee has no income tax on wages, making it more favorable, but Mississippi's extremely low cost of living often offsets the difference in total financial impact.
Is the $10,000 exemption per person or per return?
The $10,000 exemption is per return, not per person. Both single filers and married couples filing jointly receive the same $10,000 exemption on taxable income. However, MFJ filers benefit from doubled standard deductions and personal exemptions, which reduce taxable income before the $10,000 exemption applies.
Pro Tip
Take full advantage of Mississippi's generous exemption structure. A single filer gets $2,300 standard deduction + $6,000 personal exemption + $10,000 income exemption = $18,300 of income completely shielded from Mississippi tax. A married couple filing jointly with two children gets $4,600 + $12,000 + $3,000 (dependents) + $10,000 = $29,600 shielded. If your income is below these thresholds, you may owe zero Mississippi state tax. Even above these thresholds, the effective rate is significantly lower than the headline 4.7% rate. Mississippi's low taxes combined with the nation's lowest cost of living create strong purchasing power.
Did you know?
Mississippi is the number one catfish-producing state in America, and the Delta region is home to most of the nation's catfish farms. The catfish industry generates over $200 million annually and employs thousands of workers in farming, processing, and distribution. Mississippi is also the only state where the state legislature has set a legal definition for what can be called 'catfish,' protecting its signature industry from imported competition. These agricultural and food processing workers benefit from Mississippi's generous exemptions, with many lower-wage workers paying little or no state income tax.
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