Income Reality in Mississippi — Taxes, Housing & Salary
Lowest cost of living in the nation, very affordable
Data: 2026-Q2 · BLS · HUD · KFFIncome tax overview
4.4% flat rate effective 2025 (Tax Foundation; reduced to 4.0% in 2026)
Housing snapshot
Median 1BR rent in Jackson is approximately $750-$850. Homeownership is accessible at even modest income levels.
Cost of living summary
At an index of 83, Mississippi is about 17% cheaper than the national average of 100.
Mississippi consistently has the lowest cost of living index in the United States. Housing is extremely affordable, and everyday expenses are well below the national average.
Salary reality examples
Very comfortable. Mississippi's extremely low costs make this salary stretch significantly.
Excellent purchasing power. Homeownership is easily accessible at this range.
Outstanding flexibility. Mississippi provides the highest real income relative to nominal salary in the country.
FAQ — Income Reality in Mississippi
Is Mississippi the cheapest state to live in?
Yes. Mississippi consistently ranks as the lowest cost of living state with a COL index of approximately 83, about 17% below the national average.
What is Mississippi's income tax rate?
Mississippi has a flat income tax rate of 5%.
Related tools
Cost of Living Index from C2ER. This is a picture, not a verdict.