Kentucky vs Mississippi:
Take-Home Pay Comparison
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.
Tax Structure: Kentucky vs Mississippi
Kentucky uses a flat income tax (3.5% flat) while Mississippi has a flat system (4% flat). On a $100K salary, Kentucky takes $3,382 in state and local taxes compared to Mississippi’s $3,268 \u2014 a difference of $114.
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.
Take-Home at Every Salary Level
Mississippi wins at 6 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Kentucky | Mississippi | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,038 | $33,452 | +$414 | Mississippi |
| $50K | $40,723 | $41,087 | +$364 | Mississippi |
| $60K | $48,408 | $48,722 | +$314 | Mississippi |
| $75K | $59,030 | $59,270 | +$239 | Mississippi |
| $100K | $75,743 | $75,857 | +$114 | Mississippi |
| $120K | $89,113 | $89,127 | +$14 | Mississippi |
| $150K | $108,619 | $108,483 | −$136 | Kentucky |
| $200K | $142,005 | $141,619 | −$386 | Kentucky |
| $250K | $174,632 | $173,996 | −$636 | Kentucky |
| $300K | $204,946 | $204,061 | −$886 | Kentucky |
Cost of Living: Kentucky (90) vs Mississippi (83)
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 $84,158 in Kentucky vs $91,394 in Mississippi. The take-home winner also wins on purchasing power.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $81,445 in Kentucky and $81,774 in Mississippi \u2014 a difference of $329. The gap widens under married filing, making the state choice even more impactful for married filers.
Should You Move from Kentucky to Mississippi?
On paper, moving from Kentucky to Mississippi would save $114/year on a $100K salary, or $572 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $114/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.