Request a Demo

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.

Select a state or federal tax guide
Skip to end of table of contents

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:

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.

011002000110a-taxservices-fullwidth

Get Taxes Done Right, Without the Stress

We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.

Payroll Tax Services