Tax Benefits & Cost of Living
Mississippi offers some of the most favorable tax policies in the nation, especially for retirees, military families, and working professionals.
Income Tax
Phasing to 0%Mississippi signed the Build-Up Mississippi Act in March 2025, phasing out the individual income tax. The rate drops 0.25% annually to 3% by 2030, with triggers to reach 0% by 2040.
Source: National Taxpayers Union Foundation, April 2025
Property Tax
Low with ExemptionsStandard homestead exemption covers up to $7,500 in assessed value. Seniors 65+ and disabled individuals qualify for enhanced exemptions that can eliminate property tax entirely.
Source: MS State University Extension
Military Pensions
100% ExemptMilitary retired pay is completely exempt from Mississippi state income tax, making the Gulf Coast ideal for veterans and military retirees.
Source: MyArmyBenefits, April 2025
Social Security
100% ExemptMississippi does not tax Social Security benefits. Taxpayers 65+ can also exclude up to $65,000 of qualified retirement income from state taxes.
Source: Kiplinger, February 2026
Sales Tax
7% (Groceries 5%)The state sales tax rate is 7%, but grocery tax was reduced to 5% effective July 2025, lowering the cost of everyday essentials.
Source: Sales Tax Institute, 2025
Cost of Living
10-15% Below AvgMississippi's cost of living is roughly 10-15% lower than the national average. Biloxi is approximately 18.9% cheaper than Gulf Shores, Alabama.
Source: BestPlaces.net