Mississippi vs Tennessee:
Take-Home Pay Comparison
Side-by-side tax comparison between Mississippi (4% top rate, flat) and Tennessee (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Tax Structure: Mississippi vs Tennessee
Tennessee has no state income tax, while Mississippi uses a flat system with rates of 4% flat. On a $100K salary, this creates a state tax difference of $4,000/year that Tennessee residents simply don’t pay.
Mississippi’s flat 4% rate means the gap scales linearly with income. At $200K, you’d save $8,000 by being in Tennessee instead.
Take-Home at Every Salary Level
Tennessee wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Mississippi | Tennessee | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,720 | $34,320 | +$1,600 | Tennessee |
| $50K | $40,355 | $42,355 | +$2,000 | Tennessee |
| $60K | $47,990 | $50,390 | +$2,400 | Tennessee |
| $75K | $58,538 | $61,538 | +$3,000 | Tennessee |
| $100K | $75,125 | $79,125 | +$4,000 | Tennessee |
| $120K | $88,395 | $93,195 | +$4,800 | Tennessee |
| $150K | $107,751 | $113,751 | +$6,000 | Tennessee |
| $200K | $140,887 | $148,887 | +$8,000 | Tennessee |
| $250K | $173,264 | $183,264 | +$10,000 | Tennessee |
| $300K | $203,329 | $215,329 | +$12,000 | Tennessee |
Cost of Living: Mississippi (83) vs Tennessee (90)
Take-home pay only tells part of the story. Mississippi has a cost of living index of 83 while Tennessee is at 90 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $90,512 in Mississippi vs $87,917 in Tennessee. However, Mississippi actually provides better purchasing power despite Tennessee’s take-home advantage.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $80,710 in Mississippi and $84,710 in Tennessee \u2014 a difference of $4,000. The gap remains similar regardless of filing status.
Should You Move from Mississippi to Tennessee?
On paper, moving from Mississippi to Tennessee would save $4,000/year on a $100K salary, or $20,000 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $4,000/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.