Mississippi employers withhold state income tax under Department of Revenue rules and pay unemployment insurance on the first $14,000 of each employee's wages. Mississippi has no local earned-income taxes, and federal FLSA rules set the wage-and-hour baseline.
Mississippi is in the process of reducing its individual income tax under the Build Up Mississippi Act (HB 1, 2025). Employers must continue to withhold state income tax per Mississippi Department of Revenue (DOR) guidance until statutory rate changes take effect. Employers also pay state unemployment insurance (SUI) on a state taxable wage base and follow federal FLSA rules for minimum wage, overtime, child labor and other wage-and-hour items where Mississippi does not have a contrary law.
State tax requirements
| Requirement |
What Mississippi employers must do |
| Individual income tax |
Administered by the Mississippi Department of Revenue. HB 1, the Build Up Mississippi Act (2025), reduces and phases down the individual income tax — monitor DOR guidance for exact effective withholding rates and dates. |
| Withholding |
Register for and remit Mississippi withholding tax and follow the DOR employer withholding tables and instructions. DOR employer withholding publications cover formulas, deposit schedules, electronic filing through TAP, and annual reporting requirements including W-2 submission rules. |
| SUI taxable wage base |
$14,000 per employee. |
| SUI rates |
New-employer and experience-rated employer rates vary by experience class. MDES publishes rate ranges and instructions, including minimum, maximum and new-employer schedules. |
| Employee SUI withholding |
None. SUI contributions are paid by the employer; no employee portion is withheld in Mississippi. |
| New-hire reporting |
Report new hire and rehire information to the Mississippi new-hire registry (MDES) within the timeframe specified by MDES. Employer resources and forms are available from MDES. |
Local tax requirements
Mississippi does not have local earned-income taxes. There are no local wage taxes comparable to those in some other states. Municipal taxes and business license requirements vary by locality, so check municipal websites when operating within a city or county.
Wage and hour compliance
| Topic |
Mississippi rule |
| Overtime |
Mississippi follows the federal Fair Labor Standards Act (FLSA). Non-exempt employees must be paid time-and-one-half for hours worked over 40 in a workweek, unless an FLSA exemption applies. Mississippi has no separate, more restrictive state overtime statute. |
| Tipped employees |
Tip rules and tip credits are governed by the FLSA and employer practices. Mississippi has no separate state tip-credit law, so follow federal rules for recordkeeping, tip credits and the minimum cash wage for tipped workers. |
| Rest and meal breaks |
No state law requires private-sector meal or rest breaks. If an employer provides breaks, short breaks (generally around 20 minutes) are compensable under the FLSA. Unpaid meal periods (typically 30 minutes or more) are non-compensable only if the employee is relieved of all duties. |
| Final pay |
Mississippi has no statewide statute dictating the timing of final paychecks. Pay final wages by the next regular scheduled payday and follow company policy and federal rules. |
| Pay frequency |
Follow normal payroll practices and DOL guidance on pay frequency. Some industry and school statutes set specific schedules, such as school payroll provisions. |
| Wage deductions and garnishments |
Comply with federal garnishment law and Mississippi statutes for garnishments and wage assignments. Voluntary deductions require proper written authorization. |
| Unclaimed wages |
Follow Mississippi Treasury unclaimed property (escheat) reporting rules for uncashed or unclaimed wages. Holders must report and remit unclaimed property per state guidance. |
| Recordkeeping and notices |
Maintain payroll, tax and time records per the FLSA and Mississippi statutory guidance where applicable. Display required federal and state posters, and make sure withholding, SUI reporting, new-hire reporting and W-2 processes comply with state filing and format rules. |
Leave and retirement
- Paid sick leave / PTO: Mississippi does not currently require private employers to provide a statewide paid-sick-leave benefit. Paid sick leave and PTO are generally employer-provided. State government and many state agencies do provide accrued sick and personal leave for state employees under state personnel rules. Employers should also follow applicable federal leave laws such as FMLA.
- State-mandated retirement: Mississippi has no statewide mandatory private-sector retirement or automatic-enrollment program. Public-sector retirement systems (PERS and other state plans) exist for state and local employees, and 2025 legislation included changes to public retirement tiers. Employers with no retirement offering should monitor federal incentives under the SECURE Act and any state legislative developments.
2025 compliance updates
- HB 1, Build Up Mississippi Act: enacted in 2025, it phases in income-tax rate reductions. Employers must monitor DOR for withholding guidance and effective rate dates.
- Sick and safe leave proposals: SB 2022 (2025) was introduced, proposing a Mississippi Sick & Safe Leave Act. Monitor its status — a bill is not law until enacted.
Important: Do not presume a statewide paid-sick mandate applies in Mississippi until MDES or DOR publish final rules.
Resources and references
- Mississippi Department of Revenue — individual tax rates and employer withholding guidance.
- Mississippi Department of Employment Security (MDES) — unemployment tax (SUI) rates, taxable wage base, new-hire reporting and employer resources.
- Mississippi Governor's Office / HB 1 bill text — Build Up Mississippi Act (2025 legislative action and press release).
- U.S. Department of Labor — FLSA, overtime, minimum wage and child-labor guidance (federal baseline rules).
- Mississippi State Treasury — unclaimed property (holder reporting and unclaimed wages).
Note: This overview reflects state guidance as of 09/15/2025. Confirm current rates, wage bases and deadlines with the agencies above before running payroll.
Frequently asked questions
What is the Mississippi unemployment insurance taxable wage base?
Mississippi's SUI taxable wage base is $14,000 per employee. Employers pay the SUI contributions themselves; no employee portion is withheld in Mississippi.
Is Mississippi's individual income tax changing?
Yes. The Build Up Mississippi Act (HB 1, enacted in 2025) reduces and phases down the individual income tax. Employers must continue to withhold state income tax under Mississippi Department of Revenue guidance until the statutory rate changes take effect, so watch DOR for the exact withholding rates and effective dates.
Does Mississippi have local income taxes?
No. Mississippi does not impose local earned-income taxes. Municipal taxes and business license requirements still vary by locality, so check municipal websites when operating inside a city or county.
Does Mississippi require employers to give paid sick leave?
No. Mississippi does not currently require private employers to provide a statewide paid-sick-leave benefit, so paid sick time and PTO are generally employer-provided. A Sick and Safe Leave Act was introduced as SB 2022 in 2025, but it is not law unless enacted.
What overtime rules apply in Mississippi?
Mississippi follows the federal Fair Labor Standards Act for overtime, so non-exempt employees must be paid time-and-one-half for hours worked over 40 in a workweek unless an FLSA exemption applies. Mississippi has no separate, more restrictive state overtime statute.
