Mississippi Payroll Compliance
Every rate, wage base, and threshold Mississippi employers need for 2026 — sourced from the Dept. of Revenue and MDES — including the state's phased march toward eliminating income tax entirely, and a new-employer SUI rate that climbs for three years before leveling off.
Minimum Wage & Hours
Mississippi has no minimum wage law of its own — one of only five states nationwide (with Alabama, Louisiana, South Carolina, and Tennessee) without one. The federal FLSA floor of $7.25/hour applies wherever the business is covered.
| Item | 2026 Value | Notes |
|---|---|---|
| Effective minimum wage | $7.25/hr | Federal FLSA controls entirely; no state minimum wage law exists |
| Overtime rule | 40 hrs/week | Federal FLSA; no separate state overtime statute |
| Local wage ordinances | None | No Mississippi city or county sets its own minimum wage |
State Income Tax Withholding
Mississippi’s income tax dropped to a flat 4.0% on income above $10,000 for 2026, down from 4.4% in 2025 — part of the Build-Up Mississippi Act's phased march toward a 3% rate by 2030. No Mississippi city imposes an additional local income tax.
| Item | 2026 Value | Notes |
|---|---|---|
| Flat tax rate | 4.0% | On taxable income above $10,000; down from 4.4% in 2025 |
| Exempt threshold | First $10,000 | Taxed at 0%, regardless of total income |
| Standard deduction | $2,300 single / $4,600 married | Head of Family: $3,400 |
| Required certificate | Form 89-350 | Uses a total exemption amount rather than a number of allowances |
| Supplemental wages | Aggregation method | No separate flat supplemental rate; combined with regular wages |
| 2030 target rate | 3.0% | Per the Build-Up Mississippi Act's multi-year phase-down schedule |
| Local income tax | None | No Mississippi city or county imposes one |
Unemployment Insurance (SUI)
Mississippi uses a distinctive graduated new-employer rate that climbs over an employer’s first three years of liability — 1.0% in year one, 1.1% in year two, 1.2% from year three onward — before the standard experience-rating system takes over. Most states assign a single flat new-employer rate instead.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $14,000 | Per employee, per year |
| New employer rate, year 1 | 1.0% | Start-up businesses in their first year of liability |
| New employer rate, year 2 | 1.1% | Second year of liability |
| New employer rate, year 3+ | 1.2% | Third year onward, until experience rating begins |
| Experienced employer range | 0.0% – 5.4% | Based on claims history once experience-rated |
| Administering agency | MDES | Mississippi Dept. of Employment Security; quarterly filing |