Key figures
Mississippi payroll
2026, with sources
Withholding
Mississippi taxes wages at 4.0% on income over $10,000 for 2026, down from 4.4% in 2025, and the rate keeps falling to 3.0% by 2030. Withholding is registered and filed through TAP, with returns due the 15th of the month after each period. W-2s go to employees and the Department of Revenue by January 31, electronically if you issue 10 or more, and Mississippi grants no extensions.
Unemployment insurance and new hires
Unemployment insurance runs through the Mississippi Department of Employment Security, which assigns each new employer its contribution rate and publishes the taxable wage base. New hires, including rehires, are reported to the State Directory of New Hires within 15 business days of the first day of work.
Information returns run through the same account
The withholding account also carries Mississippi’s information returns. W-2s are due January 31 with no extension; 1099s for personal service income of $3,000 or more, and for $600 or more of rents, royalties, interest and dividends, are due February 28 with the Form 89-140 transmittal. A company issuing 10 or more of either files them electronically through TAP.
For a startup that mixes employees and Mississippi contractors, that means two January–February deadlines on the same account, with a state threshold for contractor forms that differs from the federal one.
Workers’ comp and wage rules
Workers’ compensation is required once five employees are regularly employed. Mississippi has no state minimum wage and no state paid leave program, so the federal minimum wage and leave rules are the floor.
A Hattiesburg startup with two founders and two engineers is below the workers’ comp threshold; its fifth hire puts it over.
Deadlines
- 15th of the month after the periodWithholding return
- January 31; no extensionsW-2s to employees and the DOR
- Within 15 business days of the first day of workNew hire report
The federal baseline
This page covers what Mississippi adds. The federal rules underneath it apply here too.
Common questions
How fast do we report new hires in Mississippi?
Within 15 business days of the worker’s first day, including rehires, to the Mississippi State Directory of New Hires.
When do we need workers’ comp in Mississippi?
At five employees regularly employed. Below that, coverage is voluntary.
Payroll next door
- ALAlabama payrollAlabama payroll is state withholding at 2% to 5%, unemployment tax at 2.7% on the first $8,000 for new employers, new-hire reports within seven days, and city occupational taxes in places like Birmingham.
- ARArkansas payrollArkansas withholds at up to 3.7% in 2026, has an $11.00 minimum wage, and DWS publishes a $7,000 wage base with a 2.0% new-employer rate. No local payroll tax applies.
- LALouisiana payrollLouisiana withholds a flat 3% from 2025, has no state minimum wage or paid leave program, and taxes the first $7,000 of wages for unemployment in 2026.
- TNTennessee payrollTennessee payroll has no state income tax or local wage tax; it is unemployment premiums on the first $7,000 of wages, new-hire reports in 20 days, and workers’ comp from five employees counting officers.
How Mississippi compares
- No tax on wagesStates with no state income tax on wagesMississippi: withholds state income tax. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programMississippi: no state program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesMississippi: state-level only. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- ComplianceFirst-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
More of the Mississippi guide
- AccountingAccounting and state tax in MississippiCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in MississippiSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in MississippiPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in MississippiRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in MississippiCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- EY Tax News — Mississippi HB 1 (2025) personal income tax rate reductions
- Mississippi Department of Employment Security — Unemployment Tax
- Mississippi State Directory of New Hires — Reporting Fundamentals
- Mississippi Workers’ Compensation Commission — Workers’ Compensation Facts
- Mississippi Department of Revenue — Business Tax Frequently Asked Questions
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.