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Taxes
Mississippi Payroll Taxes 2026: Complete Overview for Employers
Mississippi graduated 0%–5% income tax, SUI on the first $14,000, and all employer tax obligations explained.
Practical guides on MS payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Mississippi’s income tax exempts the first $10,000 of income and applies graduated rates up to 5% on income above that threshold.
Mississippi has no state minimum wage law, so the federal minimum of $7.25/hr applies across the state.
With a $14,000 wage base and relatively low rates, Mississippi’s unemployment insurance costs remain moderate for employers.
Mississippi graduated 0%–5% income tax, SUI on the first $14,000, and all employer tax obligations explained.
Get your EIN, register with Mississippi, set up withholding, new hire reporting — the complete checklist.
New employer rate 1.0%, experienced range 0.20%–5.40%, wage base $14,000.
Mississippi minimum wage $7.25/hr. Mississippi has no state minimum wage law; the federal minimum of $7.25/hr applies statewide.
IRS classification rules, Mississippi-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Mississippi small businesses.