Side-by-side tax comparison between Louisiana (4.25% top rate, graduated) and Mississippi (5% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Louisiana uses a graduated income tax (1.85-4.25%) while Mississippi has a graduated system (4.7-5%). On a $100K salary, Louisiana takes $2,763 in state and local taxes compared to Mississippi’s $3,250 \u2014 a difference of $488.
Both states use graduated brackets, but Mississippi’s top rate of 5% is higher than Louisiana’s 4.25%.
Louisiana wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Louisiana | Mississippi | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,215 | $33,020 | −$195 | Louisiana |
| $50K | $40,974 | $40,730 | −$244 | Louisiana |
| $60K | $48,733 | $48,440 | −$293 | Louisiana |
| $75K | $59,466 | $59,100 | −$366 | Louisiana |
| $100K | $76,363 | $75,875 | −$488 | Louisiana |
| $120K | $89,880 | $89,295 | −$585 | Louisiana |
| $150K | $109,607 | $108,876 | −$731 | Louisiana |
| $200K | $143,362 | $142,387 | −$975 | Louisiana |
| $250K | $176,358 | $175,139 | −$1,219 | Louisiana |
| $300K | $207,041 | $205,579 | −$1,463 | Louisiana |
Take-home pay only tells part of the story. Louisiana has a cost of living index of 91 while Mississippi is at 83 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $83,915 in Louisiana vs $91,416 in Mississippi. However, Mississippi actually provides better purchasing power despite Louisiana’s take-home advantage.
For a single earner at $100K filing jointly, take-home becomes $81,948 in Louisiana and $81,460 in Mississippi \u2014 a difference of $488. The gap remains similar regardless of filing status.
On paper, moving from Mississippi to Louisiana would save $488/year on a $100K salary, or $2,438 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $488/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.