Mississippi Income Tax Calculator 2026 โ€” Flat 4% Above $10K

Calculate your 2026 Mississippi state income tax: flat 4% on income above $10,000. Standard deduction $2,300/$4,600, personal exemption $6,000/$12,000. Old 3-bracket vs new flat savings comparison.

$
= $4,583 / month
Common salaries:
$0
Mississippi State Tax (2026)
0%
MS Effective Rate
$0
Savings vs Old System
$0
Est. Annual Take-Home

Mississippi Tax Calculation Breakdown (2026)

Mississippi Income Tax 2026 โ€” Flat Rate Reform

Mississippi's 2026 flat tax applies 4% only to income above $10,000 (after deductions and exemptions). The $10,000 threshold, combined with the standard deduction and personal exemption, means a single filer must earn more than $18,300 before paying any Mississippi income tax.

Calculation Formula

MS Taxable Income = Gross โˆ’ Standard Deduction ($2,300/$4,600) โˆ’ Personal Exemption ($6,000/$12,000) โˆ’ Dependent Exemptions ($1,500 each)
Tax-free threshold: first $10,000 of taxable income = 0%
MS Tax = max(0, MS Taxable Income โˆ’ $10,000) ร— 4%

Example: Single filer, $55,000, 0 dependents

MS Taxable: $55,000 โˆ’ $2,300 โˆ’ $6,000 = $46,700
Above $10,000 threshold: $46,700 โˆ’ $10,000 = $36,700
MS Tax: $36,700 ร— 4% = $1,468 | Effective rate: 2.67%
Extended

Old 3-Bracket vs New Flat Rate Savings

Exactly how much did Mississippi's 2026 flat tax reform save at your income level?

Under Mississippi's old 3-bracket system (used until 2026), income was taxed at 3% ($1โ€“$5K), 4% ($5Kโ€“$20K), and 5% (above $20K). The 2026 flat rate eliminates the 5% bracket entirely. Here's the comparison at your income level.

SystemYearTop RateMS State TaxSavings (2026)

Old Bracket Detail (pre-2026)

Bracket (Old)RateIncome in BracketTax

Old system uses same deductions/exemptions as 2026 for a like-for-like rate comparison. The savings shown reflect only the rate structure change.

Frequently Asked Questions

What is Mississippi's income tax rate for 2026?
Mississippi transitioned to a flat 4% income tax rate on all income above $10,000 effective 2026. Income up to $10,000 is tax-free. This replaced the old 3-bracket system (3%, 4%, 5%). Mississippi is on a continued glide path to eventually eliminate the income tax entirely, subject to revenue triggers.
What is the Mississippi standard deduction and personal exemption?
Mississippi has its own standard deduction of $2,300 for single filers and $4,600 for married filing jointly. Personal exemptions are $6,000 for single filers and $12,000 for married filing jointly. These are separate from federal amounts. Combined, a single filer gets $8,300 in deductions/exemptions before the 4% rate applies above $10,000.
How much did the 2026 flat tax save compared to the old system?
Under the old system, income from $5,001โ€“$10,000 was taxed at 3%, $10,001โ€“$20,000 at 4%, and above $20,000 at 5%. Under the 2026 flat system, only income above $10,000 is taxed, all at 4%. For a single filer earning $60,000, the old system produced roughly $2,405 in tax vs approximately $1,668 under the new flat system โ€” savings of about $737.
Is Mississippi planning to eliminate its income tax?
Yes. Mississippi's HB 531 (2022) put the state on a path to reduce and eventually eliminate the income tax. The 4% rate for 2026 is a milestone on this path. Further reductions are scheduled contingent on revenue performance, with some projections showing elimination possible in the 2030s. However, the timeline depends on state budget conditions.
Does Mississippi tax retirement income?
Mississippi is one of the most retirement-friendly states in the South. It exempts all retirement income including Social Security, public pensions (PERS), private pensions, 401(k) distributions, and IRA withdrawals for residents aged 59ยฝ and older. This makes the effective tax rate for retirees essentially 0% on most retirement income sources.