Alabama vs Mississippi: Tax & Cost Comparison
2026Side-by-side Alabama vs Mississippi comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. Deep South pair — both with low effective property tax; AL's 5% flat against MS's 4.4% flat (and only state taxing groceries at full rate).
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
| Tax / Cost Factor | Alabama | Mississippi |
|---|---|---|
| State income tax (top rate) | 5.00% (progressive) | 4.00% (flat) |
| State sales tax | 4.00% | 7.00% |
| Avg. effective property tax | 0.40% | 0.65% |
| Minimum wage (2026) | $7.25/hr | $7.25/hr |
| State Disability Insurance (SDI) | No | No |
| Paid Family Leave | No | No |
| Median home price (Q4 2025) | $224,000 | $175,000 |
| Foreclosure type | non-judicial | non-judicial |
| BEA Regional Price Parity (2024) | 87.9 | 86.1 |
| Median household income (2024) | $60,660 | $52,985 |
| Median 2-bedroom rent (Q4 2025) | $1,180/mo | $980/mo |
Worked example: $75,000 single filer, 2026
For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:
- Alabama: estimated state income tax ≈ $2,625, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 4.00% on consumption.
- Mississippi: estimated state income tax ≈ $2,100, plus federal $7,300, FICA $5,738, sales tax 7.00% on consumption.
Property tax depends entirely on home value. On a $400,000 home: Alabama ≈ $$1,600/year; Mississippi ≈ $$2,600/year.
Combined annual state burden (income + property on $400K + 6% of $50K consumption sales tax) — Alabama: ~$6,225; Mississippi: ~$8,200.
Why this comparison? Deep South pair — both with low effective property tax; AL's 5% flat against MS's 4.4% flat (and only state taxing groceries at full rate).
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Alabama
Frequently asked questions
Which is cheaper to live in: Alabama or Mississippi?
By BEA Regional Price Parity (2024), Alabama has a cost-of-living index of 87.9 and Mississippi is 86.1 (US average = 100). Median household income: Alabama $60,660, Mississippi $52,985. Median 2-bedroom rent: Alabama $1,180/mo, Mississippi $980/mo. Mississippi is the lower-cost state by this measure.
Does Alabama or Mississippi have lower income tax in 2026?
Mississippi has a top income-tax rate of 4.00%; Alabama has 5.00%. Mississippi is lower at the top bracket.
What about property taxes in Alabama vs Mississippi?
Alabama's average effective property tax rate is 0.40% (e.g., $1,600/year on a $400,000 home). Mississippi's rate is 0.65% ($2,600/year on $400K). Alabama has the lower property tax burden.
Where is the minimum wage higher: Alabama or Mississippi?
Alabama's 2026 minimum wage is $7.25/hour; Mississippi's is $7.25/hour. Both have the same minimum wage.