Cost of Living in Mississippi — Housing, Taxes & Everyday Expenses
Lowest cost of living in the nation, very affordable
Data: 2026-Q2 · BLS · HUD · KFFOverview
Mississippi consistently has the lowest cost of living index in the United States. Housing is extremely affordable, and everyday expenses are well below the national average.
Housing costs
Median 1BR rent in Jackson is approximately $750-$850. Homeownership is accessible at even modest income levels.
Tax reality
4.4% flat rate effective 2025 (Tax Foundation; reduced to 4.0% in 2026)
Everyday expenses
At a cost of living index of 83, Mississippi is about 17% cheaper than the national average of 100. A $50,000 salary in Mississippi provides purchasing power equivalent to roughly $75,000-$85,000 in an average-cost state.
Salary reality in Mississippi
Cost of Living in Mississippi — FAQ
Is Mississippi the cheapest state to live in?
Yes. Mississippi consistently ranks as the lowest cost of living state with a COL index of approximately 83, about 17% below the national average.
What is Mississippi's income tax rate?
Mississippi has a flat income tax rate of 5%.