Mississippi Wage and Payroll Tax Facts

February 02, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Mississippi.

Mississippi Minimum Wage Rates
Mississippi State Income Tax (SIT) Rates
Mississippi State Unemployment Insurance (SUI) Rates
Mississippi State Disability Insurance (SDI) Rates
Miscellaneous Mississippi Tax Information
Mississippi Employer Registration
Additional Mississippi Payroll Tax Resources

Mississippi is one of the few states without a specific minimum wage requirement or laws. Instead, it applies the rates required by the federal government in the Fair Labor Standards Act (FLSA) where appropriate.

When it comes to processing payroll, Mississippi-based organizations must handle the following taxes in addition to those required by the federal government:

Personal Income (a.k.a. State Income Tax)
State Unemployment Insurance (SUI)

The below information was last updated January 30, 2024. It is not intended as legal or tax advice.

Mississippi Minimum Wage Rates

Wage Type	Mississippi Rates*	Federal Rates
Minimum Wage	N/A	$7.25
Tipped Minimum Wage	N/A	$2.13
Actual Tip Credit	N/A	$5.12

*The state doesn't have a minimum wage law, so the federal rates under the FLSA are used when applicable.

Mississippi State Income Tax (SIT) Rates

Mississippi's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax.

Income Tax Bracket [Over X] - [But not over Y]	2024 Income Tax Rates
$0 - $10,000	0.00%
$10,000 or greater	4.70%

Additional Mississippi SIT Details
Supplemental Withholding Computation	Varies based on when the supplemental wages were received. If they're received at the same time as regular wages, the two wage types are combined and taxed at the appropriate rate listed above. If they're received after regular wages: and the regular wages haven't been taxed yet, the two wage types are combined and taxed at the appropriate rate listed above and the regular wages have already been taxed, the two wage types are combined and the appropriate rate listed above is applied. The already withheld tax amount is deducted from the result and the remaining amount is what's owed
Valid Filing Statuses	S = Single M = Married H = Head of Household
Exemptions (rates)	Dollar amount of employee's allowance
Exemptions (individuals)	Services by domestics in homes, college clubs, fraternities, or sororities Farm workers Work not done for an employer's business Ministers or members of religious orders Native Americans living and working on an Indian Reservation within the state Low-income persons Nonresident spouses of military personnel Domestic help in the home (e.g., a babysitter) Interstate carrier employees
Form W-4	Form 89-350
Reconciliation Frequency	Annual

Mississippi State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Mississippi SUI Tax Details
Taxable Wage Base	$14,000
Employee Subject to Tax	No
Rates for Experienced Employers	0.00% – 5.40%
Rates for New Employers	1.00% in the first year of business 1.10% in the second year of business 1.20% in the third year of business
Effective Period	Calendar Year
Voluntary Contributions Allowed	No
Workforce Development Fund	0.20%

Mississippi State Disability Insurance (SDI) Rates

SDI benefits are normally funded by employees through mandatory payroll deductions from each paycheck. Mississippi, however, doesn't require employers to collect an SDI tax.

Miscellaneous Mississippi Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Mississippi currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in Mississippi pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL) Taxes

The state of Mississippi doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.

Paid Family and Medical Leave (PFML) Taxes

The state of Mississippi doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.

Mississippi Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Department of Employment Security for unemployment tax topics.

Registration Details	Department of Revenue	Department of Employment Security
Phone	(601) 923-7700	(601) 321-6000
Online Registration	Department of Revenue Homepage	MDES Employer Registration
Registration Instructions	Online registration is required. Account numbers will be issued during the online process.
Employer Self-Service Login	Department of Revenue Homepage	MDES Login Page

Additional Mississippi Payroll Tax Resources

This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.

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