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 $3,500 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.
Take-Home at Every Salary Level
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 |
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 $84,028 in Kentucky vs $90,512 in Mississippi. However, Mississippi actually provides better purchasing power despite Kentucky’s take-home advantage.
Married Filing Jointly: How It Changes the Comparison
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.
Should You Move from Mississippi to Kentucky?
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.