Income Reality in Mississippi — Taxes, Housing & Salary

Lowest cost of living in the nation, very affordable

Data: 2026-Q2 · BLS · HUD · KFF
Cost of Living Index
83
Median Household Income
$59,127
State Income Tax
4.40% top rate
Median Rent
$1,400/mo

Income tax overview

4.4% flat rate effective 2025 (Tax Foundation; reduced to 4.0% in 2026)

Housing snapshot

Median 1BR rent in Jackson is approximately $750-$850. Homeownership is accessible at even modest income levels.

Cost of living summary

At an index of 83, Mississippi is about 17% cheaper than the national average of 100.

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.

Salary reality examples

$40-60k

Very comfortable. Mississippi's extremely low costs make this salary stretch significantly.

$60-80k

Excellent purchasing power. Homeownership is easily accessible at this range.

$80-100k

Outstanding flexibility. Mississippi provides the highest real income relative to nominal salary in the country.

FAQ

FAQ — Income Reality in Mississippi

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%.

Related tools

City Comparison Salary Equivalency

Cost of Living Index from C2ER. This is a picture, not a verdict.

Income Reality Check is an educational tool, not financial advice. Your situation has more dimensions than any tool can capture.