Overview
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.
State Income Tax (SIT)
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.
| Tax Structure | 4% flat rate on income above $10,000 |
| State Withholding Form | Form 89-350 |
| Filing Statuses | S, M1, M2, H |
| Standard Deduction (Single) | $2,300 |
| Standard Deduction (Head of Family) | $3,400 |
| Standard Deduction (Married) | $4,600 |
Supplemental Wages
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.
Employer State Unemployment Tax (SUTA)
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%.
| Tax Type | Employer-paid only |
| Default New Employer Rate | 1.0% |
| Rate Assignment | Experience-rated; assigned annually by the state |
Other Taxes & Obligations
Mississippi does not currently impose significant additional state-level payroll taxes beyond SIT and SUTA. This keeps payroll relatively streamlined compared to states with multiple layers of tax obligations.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Netchex does not provide tax or legal guidance and makes no representations regarding the accuracy or applicability of this information. Laws and regulations may change. The information on this page reflects payroll tax guidelines as of March 2026. For the most current requirements, please refer to:
Official reference: Mississippi Department of Revenue
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