United States
Cost of living in Mississippi
Cost of living in Mississippi comes in at an RPP of 87.0, second lowest in the country and 13 percent below the US average, ranking 50th out of 51. Despite being one of the two least expensive states, Mississippi's income tax is not the lowest: a progressive structure taxes the first $10,000 of taxable income at zero and then applies 4.4 percent above that threshold, with the rate scheduled to phase down in future years. Sales tax is 7 percent at the state level, with groceries taxed at a reduced 5 percent rate that took effect July 1, 2025. The 7 percent rate on general purchases is high relative to where Mississippi sits in the price rankings and represents a cost that falls proportionally harder on lower-income households. Housing is the primary reason the state's overall price level is so far below average.
Price level
87
US = 100
National rank
50th
of 51, dearest first
Income tax
4.4%
top rate
Sales tax
7%
state base rate
What your salary is worth in Mississippi
Because prices here sit at 87 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in Mississippi to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $52,200 | $87,000 |
| California (dearest) | $47,154 | $78,591 |
| Arkansas (cheapest) | $60,069 | $100,115 |
Compare Mississippi with anywhere in the US
To live the same in California you need
$89,069
to match $70,000 in Mississippi
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
Mississippi in context
Mississippi's cost advantage is concentrated in housing and property. Median home prices in Jackson, Gulfport, and Hattiesburg are among the lowest for any urban market in the country. Rural counties are cheaper again and account for much of the state's below-average price index. The 7 percent general sales tax is a structural offset to the low price level, effectively adding a meaningful surcharge to everyday purchases that erodes part of the housing savings for renters or buyers of goods. The income tax zero bracket on the first $10,000 shields low earners from state tax, but above that threshold the 4.4 percent rate applies without a large standard deduction to reduce the base. The state suits households primarily interested in housing affordability, particularly buyers purchasing property, where the upfront savings are substantial compared with virtually any other state.
The closest state above Mississippi on price is Oklahoma at 87.8. Just below sits Arkansas at 86.9.
Frequently asked questions
Is Mississippi expensive to live in?
Mississippi sits at a price level of 87 where the US average is 100, so a typical basket of goods and services costs about 13% less than the national norm. That ranks it 50th most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in Mississippi?
To match the buying power of $60,000 earned at the US average, you would need about $52,200 in Mississippi. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does Mississippi charge?
Mississippi applies a top state income-tax rate of 4.4% and a base state sales tax of 7%. Progressive for 2025: first $10,000 of taxable income is exempt (0%), 4.4% above $10,000; rate phasing down in future years. No standard deduction in the conventional sense (Mississippi uses a standard deduction of $2,300 single plus exemptions; treated as exemption-based). State sales tax 7% (grocery rate cut to 5% effective July 1, 2025). Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.