Cost of Living in Mississippi 2026 — Housing, Income & Taxes

📊 Mississippi at a Glance — 2026

Cost of Living Index

US average = 100 · Below Average

Median Household Income

$47,000

Source: U.S. Census Bureau ACS

Average 1BR Rent

$850/mo

Source: Zillow Observed Rent Index

State Income Tax

4.7%

Check official state rates

Average Home Price

$165,000

Source: Zillow Home Value Index

Salary Needed (30% rule)

$34,000

To keep housing under 30% of income

📈 Mississippi vs the National Average

Cost of Living

Mississippi runs 18% below the national average (index 82 vs. the U.S. baseline of 100). Mississippi consistently has the lowest cost of living in the country, driven by low land costs and a construction market with minimal demand pressure. On the tax side, Mississippi applies phasing toward eliminating its income tax entirely over the coming years.

💡 What Salary Do You Need in Mississippi?

Using the 50/30/20 budget rule, housing should cost no more than 30% of your gross income. With average rent at $850/month in Mississippi, you need roughly $34,000/year to live comfortably without being housing-cost-burdened.

Find out exactly how much you take home after Mississippi taxes

💰 Calculate Mississippi Take-Home Pay → 🏡 See How Much Home You Can Afford →

Is Mississippi expensive to live in?

Mississippi's cost of living index is 82, where 100 is the U.S. average — that's 18% below the national average. Mississippi consistently has the lowest cost of living in the country, driven by low land costs and a construction market with minimal demand pressure. The biggest local industries are agriculture, shipbuilding along the Gulf Coast, and manufacturing, centered around Jackson.

What is the average rent in Mississippi in 2026?

A 1-bedroom apartment in Mississippi averages $850/month as of 2026 (Zillow Observed Rent Index). That's set against a median household income of $47,000/year, so rent alone runs roughly 22% of the typical household's pre-tax income.

What salary do you need to live in Mississippi?

Following the standard 30%-of-income guideline for housing, you'd want roughly $34,000/year to cover Mississippi's average rent comfortably. That's a general rule of thumb, not a hard rule — your real number depends on debt, family size, and where in Mississippi you're looking. Our free paycheck calculator shows your actual take-home pay after Mississippi taxes.

Does Mississippi have a state income tax?

Mississippi applies phasing toward eliminating its income tax entirely over the coming years. The listed rate is 4.7%. Use our free paycheck calculator to see exactly how that affects your specific take-home pay.

🔗 More Free Tools

💰 PayCalc Pro — See your take-home pay after Mississippi taxes 🏡 HomeBuy Calc — How much home can you afford in Mississippi? 📊 Compare All 50 States — Cost of Living by State 2026

Cost of Living in Mississippi 2026 — Full Guide

Mississippi's cost of living index sits at 82, meaning it runs 18% below the national average. Mississippi consistently has the lowest cost of living in the country, driven by low land costs and a construction market with minimal demand pressure.

Mississippi's Economy

Mississippi's economy centers on agriculture, shipbuilding along the Gulf Coast, and manufacturing, with most of that activity concentrated around Jackson. That local economic base shapes everything from job availability to how quickly housing supply responds to demand — a state built around a few large employers behaves very differently, cost-wise, than one with a diversified metro economy.

Housing Costs in Mississippi

The average rent for a 1-bedroom apartment in Mississippi is approximately $850 per month in 2026. Average home values sit around $165,000. Mississippi consistently has the lowest cost of living in the country, driven by low land costs and a construction market with minimal demand pressure.

Taxes in Mississippi

Mississippi applies phasing toward eliminating its income tax entirely over the coming years. The current listed rate is 4.7%. Combined with federal taxes, this determines your real take-home pay — use our free paycheck calculator to see the exact impact on your specific salary rather than relying on a statewide average.

Data Sources

Cost of living index data is based on the Council for Community and Economic Research (C2ER) methodology. Income figures are from the U.S. Census Bureau American Community Survey (ACS). Rent data is sourced from the Zillow Observed Rent Index. All figures represent approximations and should be verified with official sources for financial planning.

All data is for informational purposes only and is not financial or legal advice.

Cost of Living inMississippi 2026