Mississippi variant. This is a Mississippi-specific version of the Payroll Tax Estimator (Flat Rate), using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Payroll Tax Estimator (Flat Rate).
Mississippi employers owe federal payroll taxes (Social Security, Medicare, FUTA) plus state obligations (state income tax withholding and SUTA).
Payroll tax obligations in Mississippi
Employers match the 6.2% Social Security and 1.45% Medicare withheld from employees, and pay FUTA (0.6% on the first $7,000 after credits) plus state unemployment insurance.
Mississippi also requires state income tax withholding (Flat 4.7% (down from 5%, decreasing further)).
About taxes and housing in Mississippi
Mississippi has moved to a flat income tax and exempts the first portion of income from taxation.
Mississippi has the lowest median home prices in the country along with below-average property taxes.
Mississippi has one of the lowest costs of living in the nation, with an economy based on agriculture, manufacturing, and casino tourism along the Gulf Coast.
Worked example: employer cost on $52,985
On a $52,985 salary, the employer's FICA match alone is 7.65% = $4,053, before FUTA and Mississippi unemployment insurance.
Quick reference
- State income tax: Flat 4.7% (down from 5%, decreasing further)
- State sales tax: 7% (plus 0.06% avg local)
- Median home value: $175,000
- Median household income: $52,985
- Effective property tax rate: 0.65%
- Avg auto insurance: $1,773/yr
Frequently Asked Questions
What payroll taxes do Mississippi employers pay?
Employer FICA match (7.65%), FUTA, state unemployment, and state income tax withholding.
What is the employer FICA match?
Employers match 6.2% Social Security + 1.45% Medicare = 7.65% of wages.