Retiring in Mississippi: how your income is taxed
Mississippi is very tax-friendly for retirees. On a typical retirement income it ranks tied for #1 of 51 with 18 other states for the lowest state income tax.
The rules in Mississippi
- Social Security: Social Security is fully exempt.
- Pensions: Public and private pensions are exempt once the recipient meets the plan's retirement requirements (age or years of service). Early distributions are taxable.
- 401(k), 403(b) and IRA withdrawals: IRA, 401(k), 403(b) and 457(b) payouts are exempt once they count as retirement distributions (generally at 59½ or older). Early withdrawals are taxed.
- At 65 and older: Each filer 65 or older gets an extra $1,500 exemption.
Calculate your Mississippi retirement taxes
State income tax in Mississippi: $0 a year
In Mississippi, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Mississippi you'd pay about $0 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,664 (6.2% total).
Mississippi ranks tied for #1 of 51 with 18 other states for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Mississippi
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $0 | $0 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Mississippi's main exclusions and may differ for income-tested credits.
Moving to Mississippi in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Mississippi come from (IRS migration data, 2022–2023).
- Tennessee to Mississippi
- Louisiana to Mississippi
- Texas to Mississippi
- Alabama to Mississippi
- Florida to Mississippi
- Georgia to Mississippi
Frequently asked questions
Does Mississippi tax Social Security?
Not taxed. Social Security is fully exempt.
Does Mississippi tax pensions?
Not taxed. Public and private pensions are exempt once the recipient meets the plan's retirement requirements (age or years of service). Early distributions are taxable.
Does Mississippi tax 401(k) and IRA withdrawals?
Not taxed. IRA, 401(k), 403(b) and 457(b) payouts are exempt once they count as retirement distributions (generally at 59½ or older). Early withdrawals are taxed.
Is Mississippi a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Mississippi charges about $0 in state income tax, ranking tied for #1 of 51 with 18 other states (lowest tax first).
Related
Sources: dor.ms.gov. Rules reviewed .