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Mississippi is on a path to eliminating its income tax entirely. Top rate 4.7% in 2024, reducing to 4.0% in 2026, with further reductions planned. Low SUTA, no state PFL, right-to-work. Rippling handles MS DOR and MDES filings.
Mississippi is a Gulf Coast economy with strengths in agriculture, manufacturing, energy, and defense (Northrop Grumman shipbuilding in Pascagoula). Mississippi is progressively eliminating its income tax — top rate 4.7% in 2024, targeting full elimination over the coming decade. Mississippi is a right-to-work state with no state-mandated paid leave and a competitive SUTA profile.
Rippling’s Mississippi payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| MS SUI (MDES) | New employer 1.0% | On first $14,000 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Required for 5+ employees |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Mississippi State Income Tax | 0%–4.7% | Flat rate of 4.7% on income above $10,000 (2024); reducing to 4.4% (2025) and 4.0% (2026) |
| Mississippi Income | MS Rate |
|---|---|
| Up to $10,000 | 0% |
| Above $10,000 | 4.7% (2024); 4.4% (2025); 4.0% (2026) |
MS withholding remitted to MS DOR. Annual 89-140 reconciliation. Mississippi is reducing toward full income tax elimination.
Final Pay: Mississippi requires final pay on the next regular payday. Accrued vacation payout governed by employer written policy — a written forfeiture policy is generally enforceable in Mississippi.
Mississippi is phasing out its income tax on the first $10,000 of income and reducing its flat rate: 4.7% on income above $10,000 (2024) → 4.4% (2025) → 4.0% (2026) → eventually eliminating the tax entirely (timeline depends on revenue). Mississippi is on a path to becoming a no-income-tax state alongside Tennessee, Texas, and Florida. Rippling updates MS withholding annually.
Mississippi requires workers’ comp for employers with 5 or more employees (excluding domestic workers, certain agricultural workers). Coverage through private insurers. The Mississippi Workers’ Compensation Commission administers claims.
Mississippi’s minimum wage is $7.25/hour — matching the federal minimum. Mississippi has not enacted a state minimum above the federal floor and has preempted local minimum wage ordinances.
Mississippi’s new employer SUI rate is 1.0% on the first $14,000 of wages — very competitive nationally. Combined with the reducing income tax trajectory, Mississippi is positioning itself as one of the most employer-friendly payroll states in the Southeast.
