How Much Taxes Does Mississippi Take Out of Your Paycheck?

When you receive your paycheck, the amount you take home is often less than your gross earnings due to various deductions. These deductions are not arbitrary; they represent contributions to different government programs and tax obligations. Understanding these components can provide clarity on how your net pay is determined each pay period.

Common Paycheck Deductions

A typical U.S. paycheck includes several mandatory deductions that reduce your gross wages. These usually consist of federal income tax, state income tax, and contributions for Social Security and Medicare, collectively known as FICA taxes. Each of these deductions serves a distinct purpose, funding different levels of government services and social welfare programs. These categories generally appear on most pay stubs.

Mississippi State Income Tax

Mississippi imposes an individual income tax on its residents, and the amount withheld from a paycheck depends on the state’s progressive tax structure. For the 2025 tax year, the first $10,000 of taxable income is not taxed. Taxable income exceeding $10,000 is subject to a rate of 4.4%. This updated rate for 2025 reflects a decrease from the 4.7% rate applied to income over $10,000 for the 2024 tax year.

To determine your taxable income for Mississippi, you first calculate your gross income and then subtract any applicable deductions and exemptions. The state provides specific standard deduction amounts for taxpayers. For the 2024 tax year, the standard deduction is $2,300 for single filers and those married filing separately. Married individuals filing jointly can claim a standard deduction of $4,600, while heads of household can claim $3,400. Taxpayers can choose between the standard deduction or itemized deductions, selecting the option that results in a lower taxable income.

Mississippi also offers personal exemptions that further reduce your taxable income. For a single individual, the personal exemption is $6,000. Married couples filing jointly are allowed a combined exemption of $12,000.

Taxpayers can claim an exemption of $1,500 for each qualified dependent. Exemptions of $1,500 are also available for taxpayers or spouses who are age 65 or older, or who are blind. These deductions and exemptions are subtracted from your gross income to arrive at your net taxable income, which is then subject to Mississippi’s graduated income tax rates.

Federal Income Tax and FICA Contributions

Federal income tax is another substantial deduction from your paycheck, calculated based on the information you provide on your Form W-4 to your employer. This tax operates under a progressive system, meaning higher income levels are taxed at higher marginal rates. Your employer uses your W-4 entries, which reflect your filing status, dependents, and any additional adjustments, to estimate your annual tax liability and withhold a proportionate amount from each paycheck. This withholding ensures you pay your federal income tax obligation throughout the year, rather than as a single lump sum.

Beyond federal income tax, your paycheck also includes contributions for FICA, the Federal Insurance Contributions Act. These taxes fund Social Security and Medicare, providing benefits for retirees, disabled individuals, and healthcare for eligible citizens. Both employees and employers contribute to FICA, with a combined total rate of 15.3% of wages.

For Social Security, the employee portion is 6.2% of wages. There is a wage base limit for Social Security taxes, meaning earnings above this threshold are not subject to the tax. For 2025, this limit is $176,100. Once an individual’s cumulative earnings for the year exceed this amount, Social Security tax withholding ceases.

Medicare tax does not have a wage base limit, meaning all covered wages are subject to this tax. The employee’s share for Medicare is 1.45% of all earnings. High-income earners are subject to an extra 0.9% Medicare tax, known as the Additional Medicare Tax. This additional tax applies to wages exceeding $200,000 for single filers, $250,000 for married couples filing jointly, and $125,000 for those married filing separately. Employers are responsible for withholding this additional tax but do not match the employee’s contribution for this specific portion.

Factors Affecting Your Withholding

Several variables can influence the precise amount of taxes withheld from an individual’s paycheck, even beyond the standard tax rates. The most direct influence comes from the information an employee provides on their W-4 form. Adjustments made on this form, such as claiming dependents or requesting additional withholding amounts, directly impact the federal income tax deducted. Many states, including Mississippi, use similar W-4 information or a state-specific equivalent to determine state income tax withholding.

Contributions to pre-tax accounts also reduce the amount of income subject to taxation, thereby affecting withholding. For instance, funds contributed to a 401(k) retirement plan, health savings accounts (HSAs), or flexible spending accounts (FSAs) are deducted from gross pay before taxes are calculated. This lowers your taxable income for federal and often state income tax purposes, resulting in less tax withheld from each paycheck. The frequency of your paychecks also plays a role in how your annual tax liability is distributed and withheld.