Side-by-side tax comparison between Kentucky (3.5% top rate, flat) and Mississippi (4% top rate, flat). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Kentucky uses a flat income tax (3.5% flat) while Mississippi has a flat system (4% flat). On a $100K salary, Kentucky takes $3,500 in state and local taxes compared to Mississippi’s $4,000 \u2014 a difference of $500.
Both states use flat brackets, but Mississippi’s top rate of 4% is higher than Kentucky’s 3.5%.
Kentucky also has local income taxes (estimated at $0/year on $100K), which Mississippi does not. This widens the gap beyond just state rates.
Kentucky wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Kentucky | Mississippi | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,920 | $32,720 | −$200 | Kentucky |
| $50K | $40,605 | $40,355 | −$250 | Kentucky |
| $60K | $48,290 | $47,990 | −$300 | Kentucky |
| $75K | $58,913 | $58,538 | −$375 | Kentucky |
| $100K | $75,625 | $75,125 | −$500 | Kentucky |
| $120K | $88,995 | $88,395 | −$600 | Kentucky |
| $150K | $108,501 | $107,751 | −$750 | Kentucky |
| $200K | $141,887 | $140,887 | −$1,000 | Kentucky |
| $250K | $174,514 | $173,264 | −$1,250 | Kentucky |
| $300K | $204,829 | $203,329 | −$1,500 | Kentucky |
Take-home pay only tells part of the story. Kentucky has a cost of living index of 90 while Mississippi is at 83 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $84,028 in Kentucky vs $90,512 in Mississippi. However, Mississippi actually provides better purchasing power despite Kentucky’s take-home advantage.
For a single earner at $100K filing jointly, take-home becomes $81,210 in Kentucky and $80,710 in Mississippi \u2014 a difference of $500. The gap remains similar regardless of filing status.
On paper, moving from Mississippi to Kentucky would save $500/year on a $100K salary, or $2,500 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $500/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.