Mississippi Income Tax Withholding and Payroll Information

Compliance with state taxes is required for every employer. Learn about relevant rates, exemptions, deductions, and automation below.

December, 17th 2024

Every state in the country has a unique paradigm for income tax and state unemployment insurance rates. Below are relevant rates and compliance information for Mississippi in 2025.

Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates.

Alternatively, employers can automatically calculate payroll withholding information by using ezPaycheck.

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Mississippi Tax Information

General Information
State Abbreviation	MS
State Tax Withholding State Code	28
Acceptable Exemption Form	89-350-98-1
Basis For Withholding	Federal marital status and number of state exemptions
Acceptable Exemption Data	S, M / Number of Exemptions
TSP Deferred	Yes
Special Coding	Determine the Total Number of Allowances field as follows: Divide the dollar amount in Item 6 of the state certificate by 100, then multiply by 2. For example: - $6,000 ÷ 100 = 60; 60 × 2 = 120 - $9,500 ÷ 100 = 95; 95 × 2 = 190 - $12,000 ÷ 100 = 120; 120 × 2 = 240 If no exemptions are claimed, enter 000.
Additional Information	Use the above method to determine total allowances.

How to Calculate Mississippi Taxes (2025)

Determine the employee’s filing status and applicable exemptions using the Mississippi Exemption Chart (see Deductions section).
Sum all applicable personal and dependent exemptions to find the total exemption amount.
Determine whether to use the standard deduction (based on filing status) or itemize. Choose the method that provides the greater tax benefit.
Calculate the employee’s taxable income:
- Start with gross annual wages.
- Subtract the total exemption amount (based on filing status and dependents).
- Subtract either the standard deduction or the total itemized deductions (excluding state income tax paid to Mississippi).
Apply the Mississippi tax rates for 2025:
- 0% on the first $10,000 of taxable income
- 4.4% on the remaining taxable income over $10,000
If filing a combined return (both spouses work), each spouse may calculate their tax liability separately and then add the results.
Divide the calculated annual tax by the number of pay periods in the year (e.g., 26 for biweekly) to determine the per-pay-period withholding.

Following these steps ensures accurate Mississippi tax withholding. For automation, consider using ezPaycheck.

Exemptions and Deductions

Mississippi allows various exemptions and deductions based on filing status, age, blindness, and dependents.

Exemption Amounts

Mississippi Exemption Amounts
Filing Status / Condition	Exemption Amount
Married Filing Joint or Combined	$12,000
Married Spouse Deceased	$12,000
Married Filing Separate	$6,000
Head of Family (with at least 1 dependent)	$8,000
Single	$6,000
Each Dependent (other than self or spouse)	$1,500
Taxpayer over 65	$1,500
Spouse over 65	$1,500
Taxpayer blind	$1,500
Spouse blind	$1,500

*Note: For Married Filing Joint or Combined returns, the $12,000 exemption may be divided between spouses as they choose. For Married Filing Separate, any unused portion of one spouse’s $6,000 exemption cannot be transferred to the other spouse.

Standard Deduction Amounts

Mississippi Standard Deductions
Filing Status	Standard Deduction
Married Filing Joint or Combined	$4,600
Married Spouse Deceased	$4,600
Married Filing Separate	$2,300
Head of Family	$3,400
Single	$2,300

*Note: For Married Filing Joint or Combined returns, the $4,600 standard deduction or the chosen itemized deduction amount may be divided between spouses. For Married Filing Separate, any unused portion cannot be transferred to the other spouse.

You may itemize deductions (based on federal itemized deductions, excluding Mississippi income taxes) if it results in a lower tax than the standard deduction.

Tax Chart

For the 2025 tax year, Mississippi’s tax rate is applied as follows:

0% on the first $10,000 of taxable income
4.4% on all taxable income over $10,000

If filing a combined return (both spouses work), each spouse may calculate their tax liability separately based on their respective taxable income, then add the results.

Example (2025):

John is single with taxable income of $23,000.

First $10,000 @0% = $0
Remaining $13,000 @4.4% = $13,000 × 0.044 = $572
Total Tax = $572

If John is married to Mary, who has taxable income of $40,000, and they choose to file a combined return and calculate separately:

John: $23,000 in taxable income
Mary: $40,000 in taxable income
John’s tax: First $10,000 @0% + $13,000 @4.4% = $572
Mary’s tax: First $10,000 @0% + $30,000 @4.4% = $1,320
Total Tax: $572 + $1,320 = $1,892

(This example is simplified; actual computation depends on allowable exemptions and deductions.)

Automate Payroll with ezPaycheck

ezPaycheck is an easy-to-use payroll software designed with small businesses in mind: simple, reliable, and affordable. It can help you automatically calculate Mississippi state taxes, print paychecks for employees & contractors, generate reports, and print tax forms. No internet connection needed.

Try it free for 30 days with no obligation and no credit card needed. ezPaycheck is available for both Windows and Mac computers.

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