State profile
Mississippi Cost of Living Comparison
Mississippi's 2024 price level is 86.953, second-lowest of 51 jurisdictions, but the discount is almost entirely in rents (56.456); goods, at 96.219, rank only 19th-lowest.
Updated
86.953Mississippi all-items price level, U.S. = 100 · rank 2 of 51, lowest first
| Measure | Mississippi | Arkansas | First − second |
|---|---|---|---|
| All-items price level | 86.953 | 86.937 | +0.016 points |
| Rent price level | 56.456 | 58.203 | −1.747 points |
| Home value | $169,800±$1,198 | $188,000±$1,754 | −$18,200 |
| Two-bedroom gross rent | $913±$13 | $907±$8 | +$6 |
| Household income | $56,447±$539 | $60,773±$467 | −$4,326 |
| Real estate taxes paid | $1,215±$12 | $1,040±$13 | +$175 |
$4,000 of monthly spending in Mississippi scales to $3,999 in Arkansas at the 2024 all-items price ratio.
BEA 2024 and ACS 2020–2024; ± marks the Census 90% margin. How to read a gap
Mississippi: the lowest incomes, and rents that are not cheap enough
Rents are the whole story of Mississippi's low price level. The rent parity is 43.54% below the national level, second-lowest anywhere, while goods are just 3.78% below. A household that rents will feel the difference; one whose budget is mostly goods and services will feel much less of it.
Incomes are the lowest in the country on both measures. The median household income of $56,447 ranks 51st, and real per capita personal income, which already accounts for Mississippi's prices, is $48,465, also rank 51. Low prices do not close the gap: renters still spend 30.7% of income on gross rent, rank 17, even with a two-bedroom median of $913.
Ownership is inexpensive: only West Virginia has a lower median home value than Mississippi's $169,800, and owners carrying a mortgage typically spend $1,394 a month including taxes, insurance and utilities.
Sales tax carries the state. General sales supplied 49.4% of fiscal 2025 collections, $1,831 per resident, and other selective sales a further 14.0%. Mississippi's general sales rate is 7%, and groceries eligible for SNAP are taxed at 5%, so food is not exempt. The income tax is 4% above the first $10,000 for 2026. Total collections were $3,707 per resident, rank 34.
The price level edged up from 85.583 in 2020 to 86.953 in 2024. Among neighbours, Arkansas (86.937) is almost identical and Louisiana (88.207) and Alabama (88.823) close; Tennessee (91.870) is the dearest, with a two-bedroom median of $1,143.
Category price levels in Mississippi
| Category | Parity | Rank, low first | vs U.S. |
|---|---|---|---|
| All items | 86.953 | 2 | 13.05% below |
| Goods | 96.219 | 19 | 3.78% below |
| Housing (rents) | 56.456 | 2 | 43.54% below |
| Utilities | 78.415 | 11 | 21.58% below |
| Other services | 96.090 | 11 | 3.91% below |
| Real income per person, 2017 $ | $48,465 | 51 | U.S. $59,195 |
All items by year: 2020 85.583 · 2021 86.222 · 2022 87.336 · 2023 86.792 · 2024 86.953 (+1.370 since 2020). How to read categories and trends
Monthly housing costs
- Owners with a mortgage
- $1,394±$10 · rank 49, high first
- Owners without a mortgage
- $432±$4 · rank 50
- Renters: gross rent / income
- 30.7%±0.5 · rank 17
Mississippi state tax collections, FY2025
$10.95 billion in total, $3,707 per resident. Scope of these figures
| Tax | FY2025 | Share | Per resident |
|---|---|---|---|
| Individual income | $2.37 billion | 21.7% | $803 |
| General sales | $5.41 billion | 49.4% | $1,831 |
| Property | $30.2 million | 0.3% | $10 |
| Motor fuel | $458.3 million | 4.2% | $155 |
| Other selective sales | $1.54 billion | 14.0% | $520 |
| Corporate income | $504.1 million | 4.6% | $171 |
| Licenses | $597.6 million | 5.5% | $202 |
| Severance | $43.2 million | 0.4% | $15 |
| Other taxes | $0.0 million | 0.0% | $0 |
Mississippi income tax on wages
Mississippi exempts the first $10,000 of taxable income and taxes the rest at 4% for tax year 2026, down from 4.4% in 2025, with 3.75% scheduled for 2027, according to the Mississippi Department of Revenue. Married couples filing jointly apply the $10,000 exemption to each spouse's taxable income.
Read : Mississippi Department of Revenue: individual income tax general information. Price parities exclude income taxes.
Mississippi sales tax
Mississippi's sales tax is 7% of gross proceeds on retail sales of tangible personal property, while groceries, defined as food and drink eligible for purchase with SNAP benefits, are taxed at 5%, according to the Department of Revenue's rate table under Mississippi Code sections 27-65-17, 27-65-20 and 27-65-25.
Mississippi beside its neighbours
Before you budget a move
Mississippi has one of the lowest all-items price levels in the verified BEA release. The index is a useful broad comparison, but a household still needs an actual lease, compensation offer and travel plan. Lower population prices do not guarantee that relocation cash or personal expenses will fall by the same percentage.
For Jackson or another destination, specify the same dwelling size and utility responsibilities used in the origin budget. If the proposed job changes hours or health coverage, include that change independently. Do not replace an unknown employer offer with the historical median income of households across the state.
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