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How Much Does It Cost to Hire an Employee in Mississippi? (2026)

State-specific payroll taxes, workers' comp, and total employer costs in Mississippi.

No signup No tracking Last updated March 2026
Data current as of March 2026 Sources: IRS Publication 15, SSA COLA notices, State Workforce Agencies

Hiring a $60,000/year employee in Mississippi costs employers approximately $65,490 total in 2026, including $5,490 in mandatory payroll taxes and workers' comp. That's a 1.09x multiplier on base salary.

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Total Cost at $60K Salary

$65,490

Cost multiplier: 1.09x

SUTA Rate (Mid)

1.2%

Wage base: $14,000

Workers' Comp Rate

1.15%

Has state income tax

Key Insight

For a $60,000 salary in Mississippi, employers pay $5,490 in mandatory taxes — a 1.09x cost multiplier. Mississippi's SUTA rate (1.2%) is below the national average of 1.70%.

Model your specific hire

Use our interactive calculator pre-loaded with Mississippi's tax rates. Adjust salary, benefits, and overhead to get your true cost.

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Mississippi Employer Tax Details

State-specific payroll obligations for employers

SUTA Rate Range 0.1% – 5.4%
SUTA New Employer Rate (typical) 1.2%
SUTA Wage Base $14,000
Workers' Compensation (avg) 1.15% of payroll
State Income Tax Yes

Example Employer Costs in Mississippi

Mandatory employer taxes only (no benefits or overhead)

Component $40,000 Salary $60,000 Salary $80,000 Salary
Social Security (6.2%) $2,480 $3,720 $4,960
Medicare (1.45%) $580 $870 $1,160
FUTA $42 $42 $42
SUTA (MS) $168 $168 $168
Workers' Comp $460 $690 $920
Total Employer Taxes $3,730 $5,490 $7,250
Total Cost (salary + taxes) $43,730 (1.09x) $65,490 (1.09x) $87,250 (1.09x)

These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.

Tax rates sourced from IRS Publication 15, SSA COLA notices, and Mississippi Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.

How Mississippi Compares

Mississippi's typical SUTA rate of 1.2% is below the national average of ~1.70%.

Workers' compensation at 1.15% of payroll is below the national average of ~1.20%.

Mississippi Employer Environment

Below-average employer costs
  • State income tax applies — factor into total compensation packages
  • SUTA rate 1.2% (wage base $14,000) — in line with national average
  • Workers' comp rate 1.15% — near national average, varies by industry classification

Mississippi's overall employer tax burden is broadly in line with the national average. Review SUTA and workers' comp rates relative to your industry classification for a more precise picture.

MS

Mississippi Employment Profile

Mississippi has a $14,000 SUTA wage base and very low workers' compensation rates, making it one of the lowest employer-cost states in the South.

Top Industries

gaming & hospitality, poultry & catfish processing, auto manufacturing

Employer Note

Mississippi's low cost of living and minimal employer mandates have attracted Nissan and Toyota plants; the state actively recruits manufacturers with tailored tax incentives.

Cost at Different Salary Levels in Mississippi

Total employer cost including all mandatory payroll taxes

Salary Total Cost Multiplier
$30,000 $32,850 1.1x
$40,000 $43,730 1.09x
$50,000 $54,610 1.09x
$60,000 $65,490 1.09x
$75,000 $81,810 1.09x
$100,000 $109,010 1.09x
$125,000 $136,210 1.09x
$150,000 $163,410 1.09x

Compare Mississippi With

vs California vs Texas vs New York vs Florida vs Illinois vs Georgia

Hiring Cost by Industry in Mississippi

Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.

Restaurant WC 2.88% of payroll Retail WC 1.5% of payroll Technology WC 0.29% of payroll Healthcare WC 1.61% of payroll Construction WC 4.6% of payroll Manufacturing WC 3.45% of payroll Professional Services WC 0.32% of payroll

Average Wages by Occupation in Mississippi

BLS OEWS 2024

Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.

Occupation Group Median Annual Employed
Management $85,840 53,520
Architecture and Engineering $82,280 13,910
Computer and Mathematical $68,140 16,520
Healthcare Practitioners and Technical $64,960 84,500
Life, Physical, and Social Science $63,680 7,570
Business and Financial Operations $63,420 45,280
Legal $60,990 6,110
Installation, Maintenance, and Repair $48,840 57,790
At the median computer and mathematical salary of $68,140, total employer cost in Mississippi is approximately $74,346 — about 9% above base salary.
See all occupations in Mississippi →

States With Similar Hiring Costs

These states have SUTA rates close to Mississippi's 1.2% — good for cost benchmarking.

Nebraska
SUTA 1.25%
Ohio
SUTA 1.3%
Wyoming
SUTA 1.07%
North Dakota
SUTA 1.06%
Iowa
SUTA 1.0%

Mississippi Business Resources

Employee Cost Calculator

Pre-filled for Mississippi — customize salary and benefits

1099 vs W-2 Calculator

Is a contractor cheaper than a W-2 employee? Find the break-even rate.

Salary to Hourly in Mississippi

Convert annual salary to hourly with Mississippi payroll taxes

Form an LLC in Mississippi

Step-by-step LLC formation guide

Specialized Calculators for Mississippi Employers

Running a specific type of business? These tools go deeper on costs by industry and location.

Food Truck Startup Costs

foodtruckcost.com — ZIP-level startup cost data

Daycare Cost Calculator

daycarecalc.com — childcare cost benchmarks by ZIP

Elder Care Cost Calculator

eldercarecost.com — senior care facility costs by ZIP

Franchise Budget Calculator

franchisebudget.com — franchise startup cost estimator

Simplify Payroll in Mississippi

These providers handle tax calculations, filings, and compliance automatically.

Gusto Payroll

All-in-one payroll, benefits, and HR. Automatically calculates and files federal, state, and local payroll taxes.
ADP Payroll

Payroll and tax filing for businesses of all sizes with built-in state-specific compliance.
Paychex HR & Payroll

Payroll, HR, and benefits in one platform. Handles multi-state employment and tax filings.

Some links may be affiliate links. CostCrunch may earn a commission at no extra cost to you.

Compare all 8 payroll software options →

Get notified when Mississippi tax rates change

We monitor SUTA, workers' comp, and payroll tax rates across all 50 states. Free updates, no spam.

Calculate Your Exact Employee Cost

Use our interactive calculator with your specific salary, state, and benefits to get an exact number.

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Estimates only. These results are based on publicly available data and standard formulas. Actual costs may vary based on your specific circumstances. This calculator does not constitute financial, tax, or legal advice. Consult a qualified professional for advice on your situation.

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