Mississippi Tax Guide for Employers (2026) 

Mississippi recently simplified its tax system. The state now applies a flat rate on income above a certain threshold, replacing the former multi-bracket system. The rate applies only to income above $10,000. 

Mississippi imposes a flat rate of 4% on all taxable income above $10,000 for 2026. Income below $10,000 is not subject to withholding. The state uses Form 89-350, which includes a total exemption amount (rather than a number of allowances) that reduces taxable income. Standard deductions vary by filing status: $2,300 for Single, $3,400 for Head of Family, and $4,600 for Married. 

Mississippi supports the following supplemental calculation methods. Mississippi does not have a separate flat supplemental tax rate. Supplemental wages are calculated using the aggregation method along with regular wages. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 1.0%. 

Follow these steps to begin withholding Mississippi payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Mississippi Department of Revenue at dor.ms.gov
3. Register for SUTA with the Mississippi Department of Employment Security at mdes.ms.gov
4. Submit a Netchex tax team request to enable Mississippi SIT and SUTA
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Mississippi payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Mississippi payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Mississippi Department of Revenue. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Mississippi Department of Revenue at https://www.dor.ms.gov/business/withholding-tax.

The following official resources will help you stay current on Mississippi payroll tax requirements: 

• Mississippi Department of Revenue
• Mississippi DOR Withholding Tax

What is Mississippi’s current income tax rate? 

Mississippi’s income tax is transitioning to a flat 4.0% by 2026. Check current rates at dor.ms.gov. 

What form do Mississippi employees complete? 

Employees complete Mississippi Form 89-350, the Employee’s Withholding Exemption Certificate. 

What is Mississippi’s SUTA wage base? 

Mississippi’s SUTA wage base is $14,000 per employee per year. Verify at mdes.ms.gov. 

Does Mississippi have local payroll taxes? 

No. Mississippi does not impose local payroll taxes. 

What is Mississippi’s supplemental withholding rate? 

Mississippi uses the employee’s regular withholding rate for supplemental wages.