Retiring in Mississippi: what taxes actually cost you
The short answer
On $80,000 of retirement income, Mississippi costs about $5,110 a year across state income, property and sales tax. That ranks 10 of 51, or $1,525 below the median state. State income tax alone is $400, which is 0.5% of gross income.
Run it on your own numbers
The figures above use a reference profile. Change them and every number on this page moves, including the ranking.
How Mississippi treats retirement income
Mississippi uses a flat 4% income tax, so the rate is the same on the first dollar and the last.
Social Security
Not taxed
Pension income
Not taxed
401(k) and IRA withdrawals
Not taxed
Capital gains
Taxed as ordinary income
Property tax
Averages 0.81% of assessed value, so $3,240 a year on a $400K home.
Sales tax
State rate of 7%, before any local addition.
Worth knowing: All retirement income exempt! Flat 4% rate for 2026 (phasing to 3% by 2030).
Where Mississippi sits against the rest
The spread across all 51 runs from $3,280 in Wyoming to $14,004 in Connecticut, a difference of $10,724 a year on the same income.
Five cheapest on these numbers
| State | Total tax |
|---|---|
| Wyoming | $3,280 |
| Nevada | $3,639 |
| Colorado | $4,009 |
| Tennessee | $4,310 |
| Louisiana | $4,678 |
Five most expensive on these numbers
| State | Total tax |
|---|---|
| Connecticut | $14,004 |
| New Jersey | $12,953 |
| Vermont | $12,755 |
| Kansas | $11,108 |
| Minnesota | $10,888 |
Worth keeping in proportion. The gap between the best and worst state here is real money, but it is smaller than the gap between two housing markets, and it is far smaller than the effect of your withdrawal rate. Safe withdrawal rate covers that one.
Common questions
Does Mississippi tax Social Security?
No. Mississippi does not tax Social Security benefits at the state level. Federal tax on benefits still applies depending on your combined income.
How much tax would a retiree pay in Mississippi?
On $80,000 of retirement income with a $400,000 home and $70,000 of annual spending, Mississippi works out at roughly $5,110 a year across income, property and sales tax. That ranks 10 of 51, against a median of $6,635.
Does Mississippi tax 401(k) and IRA withdrawals?
No. Withdrawals from 401(k)s and IRAs are not taxed by Mississippi.
Is Mississippi a good state to retire in for taxes?
Cheaper than most states. On the reference profile it costs $1,525 less than the median state, and $1,830 more than Wyoming, which is the cheapest. Tax is one input though. Cost of living, housing and proximity to family usually move a retirement budget further than the tax code does.
Retirement taxes in another state
Related: Taxes in retirement, Withdrawal order, Roth conversions, All 51 states.