Mississippi Income
Tax Rates & Rules

Mississippi taxes the first $10,000 of individual taxable income at 0 percent in 2026 and taxes taxable income above $10,000 at 4 percent. The state calculation is based on Mississippi taxable income after the deductions and exemptions that apply, not simply on gross wages or federal adjusted gross income.

Mississippi's 2026 Individual Income Tax Rate Is 4 Percent Above $10,000

For tax year 2026, Mississippi applies a 0 percent rate to the first $10,000 of taxable income and a 4 percent rate to taxable income above $10,000. The 2026 rate continues the phased reductions enacted before 2026, while later legislation schedules a 3.75 percent rate for taxable income above $10,000 in 2027.

For a combined return where both spouses have taxable income, Mississippi can calculate the tax for each spouse separately before combining the result. This means the $10,000 zero-rate band can apply separately to each spouse's taxable income when the state return is prepared under the applicable combined-return rules.

How Mississippi Taxable Income Is Calculated

Mississippi taxable income is determined after state deductions and exemptions are applied. The process begins with income that must be reported to Mississippi, then subtracts either the Mississippi standard deduction or allowable itemized deductions plus the exemptions that fit the taxpayer's filing status.

Mississippi Standard Deductions and Exemptions

Mississippi uses its own standard deduction and exemption amounts. These amounts are much smaller than the federal standard deduction, so taxpayers should not copy the federal deduction directly into the Mississippi calculation.

Mississippi also allows $1,500 for each qualifying dependent. Additional $1,500 exemptions can apply for a taxpayer or spouse who is age 65 or older or blind. A Head of Family filer must have a qualifying dependent, which is why the practical exemption for that status begins with the $8,000 base plus the required dependent amount.

Who Must File a Mississippi Income Tax Return?

Mississippi filing requirements depend on residency, gross income, withholding plus Mississippi-source income. A taxpayer should also file when Mississippi income tax was withheld and a refund may be due.

• A single Mississippi resident generally files when gross income exceeds $8,300 plus $1,500 for each dependent.
• A married resident return is generally required when combined gross income exceeds $16,600 plus $1,500 for each dependent.
• A nonresident or part-year resident with income taxed by Mississippi can have a filing requirement.
• A Mississippi resident working outside the state generally reports total gross income on the Mississippi resident return.
• A taxpayer with Mississippi income tax withheld may need to file to reconcile the withholding or claim a refund.

Residents, Part-Year Residents and Nonresidents Are Taxed Differently

A Mississippi resident generally reports income from all sources. A part-year resident reports income received while a Mississippi resident plus Mississippi-source income received while a nonresident. A nonresident reports income sourced to Mississippi.

Part-year residents and nonresidents use Form 80-205. Their deductions and exemptions are prorated using the relationship between Mississippi income and total income from all sources, so the state tax cannot be estimated correctly by looking only at a gross wage figure.

Does Mississippi Tax Remote Workers?

Mississippi generally taxes a nonresident employee on wages for services physically performed in Mississippi. When services are performed partly inside and partly outside the state, only the wages attributable to the Mississippi services are subject to Mississippi income tax.

A Mississippi resident who works remotely for an employer in another state generally remains subject to Mississippi tax on income because Mississippi residents report income from all sources. If the other state also taxes the same income, a credit for income tax paid to the other state may be available based on the other state's actual tax liability.

Mississippi Withholding Uses Form 89-350

Employers use Mississippi Form 89-350 and the current withholding tables to determine state income tax withholding from wages. The 2026 payroll formula annualizes wages, subtracts the applicable standard deduction and exemptions, then applies 0 percent to the first $10,000 of taxable income and 4 percent above that amount.

Withholding is only a prepayment toward annual tax. An employee can receive a refund when withholding exceeds final liability or owe additional tax when the amount withheld during the year is too low.

For a pay-period estimate rather than an annual return calculation, use the Mississippi paycheck calculator with the employee's actual pay frequency and withholding information.

Mississippi Generally Exempts Qualified Retirement Income

Mississippi generally does not tax retirement income, pensions or annuities when the recipient has satisfied the retirement plan requirements. This can make a major difference between federal taxable income and Mississippi taxable income for retirees.

The exclusion is not a reason to assume that every payment from a financial account is tax-free. A withdrawal should fit the state's retirement-income treatment. Taxpayers should confirm the character of the payment in the current Mississippi instructions.

Mississippi Residents Can Claim Credit for Tax Paid to Another State

A Mississippi resident who earns income in another state and pays income tax there can be eligible for a Mississippi credit for tax paid to that state. The credit is based on the other state's actual tax liability, not merely the amount withheld on a W-2.

The taxpayer generally needs to include a copy of the other state's return to support the credit. The credit is designed to reduce double taxation of the same income, but it is limited by Mississippi's rules and should be calculated from the annual return instructions.

Estimated Tax Can Matter When Wages Are Not Fully Withheld

Self-employed taxpayers, investors and people with substantial nonwage income may need to plan for Mississippi tax even when no employer is withholding from payments. Mississippi estimated payment requirements depend on the taxpayer's expected liability and current state rules.

The practical goal is to compare expected annual Mississippi tax with withholding and other payments already made. Taxpayers should use current Mississippi forms rather than treating a 4 percent rate as the entire estimated-tax calculation.

Payroll Records Help Reconcile Mississippi Income Tax

Pay stubs can help employees track Mississippi withholding, current wages and year-to-date totals, but they do not replace the annual Mississippi income tax return. Year-end Forms W-2 and other tax documents should be reconciled with payroll records before filing.

After genuine wages and deductions are verified, the Mississippi pay stub generator can organize payroll details into a clear employee record. The main paystub maker is intended for lawful payroll, business and recordkeeping use.