Cost of Living in Mississippi
Things cost about ▼ 13% less in Mississippi than the national average.
What Things Cost in Mississippi
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Mississippi is the cheapest state in America by most measures, with a cost of living roughly 15% below the national average and housing an astonishing 37% below. The median home price of about $140,800 is less than a third of what you would pay in California. For someone with a fixed income, a remote salary, or retirement savings, the sheer purchasing power of a dollar in Mississippi is remarkable. Jackson is the largest city but has struggled economically. The DeSoto County suburbs (Southaven, Olive Branch) benefit from the Memphis metro economy. Oxford, home to Ole Miss, is a charming college town.
Mississippi at a Glance
Taxes in Mississippi
Mississippi's state income tax tops out at 5% flat. The combined sales tax averages 7%. Property taxes run about 0.75% of home value, which on a $140,800 median home means roughly $1,056/year.
Cities in Mississippi
Ranked from least to most expensive. Index 100 = national average.
Explore Mississippi
FAQ About Mississippi
Yes, by most measures. Mississippi's cost of living is about 15% below the national average, the lowest of any state. Housing is the standout at roughly 37% below average with a median home price of about $140,800. A household earning $45,000 in Mississippi has purchasing power comparable to earning roughly $53,000 in an average-cost state.
Jackson is one of the most affordable state capitals in America. The median home price is under $150,000, rents average under $900 per month, and the overall cost of living is about 18% below the national average. The city has challenges with infrastructure and crime in some areas, but the cost of entry for housing and daily expenses is remarkably low.
Mississippi has been reducing its income tax, with the first $10,000 exempt and a 5% rate above that. The state sales tax is 7%. Property taxes are low at about 0.63%. Social Security is not taxed. The overall tax burden is moderate, and when combined with the lowest cost of living in the nation, take-home purchasing power can be surprisingly strong.