Mississippi Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

Remote Workers and Multi-State Taxation

Living in Mississippi, Working for an Out-of-State Employer

As a Mississippi resident, you owe Mississippi income tax on all income, regardless of where your employer is located. Employer location does not determine state tax obligation.

What this means:

• A Mississippi resident working remotely for a company headquartered in New York, California, or any other state owes Mississippi income tax on that income.
• Your employer may be required to withhold Mississippi income tax even though it is located in another state.
• You file a Mississippi resident return (Form 80-105) and report all income from all sources.

Source: https://www.dor.ms.gov/general-information

Working in Mississippi, Living in Another State

Non-residents who perform work physically in Mississippi owe Mississippi income tax on income earned from Mississippi sources.

Mississippi applies a physical presence rule: income is sourced to Mississippi based on where work is physically performed, not where the employer is located.

Source: https://www.dor.ms.gov/individual

⚠️ Interstate Tax Risk Indicator

Mississippi residents working remotely for employers in certain states may encounter dual-taxation complications:

• New York — Applies the “convenience of the employer” rule; if your NY employer considers your remote work arrangement to be for your personal convenience (rather than a business necessity), NY may tax your income even if you never set foot in New York.
• California — Known for aggressive residency audits and broad-based income sourcing rules for income connected to California-based businesses.
• Pennsylvania — Has 200+ local income tax jurisdictions that may apply separate withholding requirements.
• Connecticut — Has a complex credit system for taxes paid to other states.

In all these cases, Mississippi will tax you as a resident on all income. File the appropriate non-resident returns in states where you physically worked, and claim a credit on your Mississippi return for taxes paid to those other states (Form 80-160).

Source: https://www.dor.ms.gov/individual; IRS Publication 505

“Convenience of the Employer” Rule

Mississippi does not apply a “convenience of the employer” rule. Non-residents are taxed by Mississippi only on income from work physically performed in Mississippi.

Source: https://www.dor.ms.gov/individual

Reciprocal Agreements

Mississippi does not have reciprocal agreements with any other states. There are no reciprocity exemptions available. Mississippi residents who work in other states must file non-resident returns in those states (if required) and claim a credit for taxes paid to other states on their Mississippi resident return.

Source: https://www.dor.ms.gov/individual

Multi-State Tax Filing

When earning income in multiple states as a Mississippi resident:

1. File a resident return in Mississippi (Form 80-105) reporting all income from all sources
2. File non-resident returns in other states where income was physically earned (as required by those states)
3. Claim a credit on your Mississippi return (Form 80-160) for income taxes paid to other states to prevent double taxation

Forms required:

• Form 80-160 — Credit for Tax Paid Another State (one per other state, attached to Form 80-105)
• The credit is limited to the lesser of: (a) the actual tax paid to the other state, or (b) the Mississippi tax on the same income

Source: https://www.dor.ms.gov/individual/individual-income-tax-forms
Miss. Code Ann. §27-7-77