Get MS DoR 89-142 2010-2023

The withholding formula uses the flat 5% income tax rate. In 2022, the formula used two brackets of 4% and 5%.

Form 89-350​​ - Withholding Exemption Certificate Completed by employee; retained by employer.

There is a single, statewide sales tax of 7% in Mississippi. It is the same everywhere in the state, with a few exceptions. The city of Jackson, Mississippi's state capital, collects its own additional sales tax of 1%. This means the total sales tax there is 8%.

Yes, a resident of Mississippi is subject to Mississippi income tax on all of his/her wages whether he/she works in Mississippi or in another state. If the other state has an income tax, the Mississippi resident will have to file a non-resident return in the other state and pay income tax to that other state.

Mississippi has a flat income tax rate of 5 percent. The employer must withhold an amount equal to that percentage from each paycheck after subtracting the employee's pretax deductions, such as health insurance or retirement plans. The employer must also match what it withholds from employee paychecks.

Net of Taxes = Gross Amount – Amount of Taxes The amount net of tax can be calculated by subtracting the amount of taxes from the gross value.

Employers must withhold Mississippi income tax from all wages earned by non-resident employees for services performed in Mississippi unless their Mississippi earnings for the year will be less than their standard deduction amount for their filing status.

Mississippi's 2023 withholding formula was released by the state revenue department and is the first to use a flat tax rate. Legislation passed in 2022 (H.B. 531) introduced a flat 5% tax rate on annual income over $10,000 starting in 2023.