Maryland vs Mississippi:
Take-Home Pay Comparison
Side-by-side tax comparison between Maryland (6.5% top rate, graduated) 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: Maryland vs Mississippi
Maryland uses a graduated income tax (2-6.5% + local) while Mississippi has a flat system (4% flat). On a $100K salary, Maryland takes $7,438 in state and local taxes compared to Mississippi’s $3,268 \u2014 a difference of $4,170.
Because Maryland has graduated brackets while Mississippi is flat, the gap between them changes at different income levels. Maryland’s rates increase with income, so high earners feel the difference more acutely.
Maryland also has local income taxes (estimated at $2,900/year on $100K), which Mississippi does not. This widens the gap beyond just state rates.
Take-Home at Every Salary Level
Mississippi wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Maryland | Mississippi | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,532 | $33,452 | +$1,920 | Mississippi |
| $50K | $38,792 | $41,087 | +$2,295 | Mississippi |
| $60K | $46,052 | $48,722 | +$2,670 | Mississippi |
| $75K | $56,037 | $59,270 | +$3,232 | Mississippi |
| $100K | $71,687 | $75,857 | +$4,170 | Mississippi |
| $120K | $84,166 | $89,127 | +$4,962 | Mississippi |
| $150K | $102,267 | $108,483 | +$6,216 | Mississippi |
| $200K | $133,162 | $141,619 | +$8,457 | Mississippi |
| $250K | $163,289 | $173,996 | +$10,707 | Mississippi |
| $300K | $190,987 | $204,061 | +$13,074 | Mississippi |
Cost of Living: Maryland (112) vs Mississippi (83)
Take-home pay only tells part of the story. Maryland has a cost of living index of 112 while Mississippi is at 83 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in Maryland has purchasing power of $64,006 compared to $91,394 in Mississippi. Mississippi wins on both raw take-home and cost-adjusted purchasing power, making it the clear winner for a $100K earner.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $77,532 in Maryland and $81,774 in Mississippi \u2014 a difference of $4,242. The gap widens under married filing, making the state choice even more impactful for married filers.
Should You Move from Maryland to Mississippi?
On paper, moving from Maryland to Mississippi would save $4,170/year on a $100K salary, or $20,849 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $4,170/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.