Louisiana vs Mississippi: Tax & Cost Comparison

2026

Side-by-side Louisiana vs Mississippi comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. Adjacent Deep South states — LA's 4.25% top + 9.55% combined sales tax (highest avg in country) against MS's 4.4% flat + 7% grocery tax (only state taxing groceries fully).

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 Louisiana Mississippi
State income tax (top rate) 3.00% (flat) 4.00% (flat)
State sales tax 5.00% 7.00%
Avg. effective property tax 0.55% 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) $220,000 $175,000
Foreclosure type judicial non-judicial
BEA Regional Price Parity (2024) 92.7 86.1
Median household income (2024) $58,400 $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:

  • Louisiana: estimated state income tax ≈ $1,575, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 5.00% 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: Louisiana ≈ $$2,200/year; Mississippi ≈ $$2,600/year.

Combined annual state burden (income + property on $400K + 6% of $50K consumption sales tax) — Louisiana: ~$6,275; Mississippi: ~$8,200.

Why this comparison? Adjacent Deep South states — LA's 4.25% top + 9.55% combined sales tax (highest avg in country) against MS's 4.4% flat + 7% grocery tax (only state taxing groceries fully).

Frequently asked questions

Which is cheaper to live in: Louisiana or Mississippi?

By BEA Regional Price Parity (2024), Louisiana has a cost-of-living index of 92.7 and Mississippi is 86.1 (US average = 100). Median household income: Louisiana $58,400, Mississippi $52,985. Median 2-bedroom rent: Louisiana $1,180/mo, Mississippi $980/mo. Mississippi is the lower-cost state by this measure.

Does Louisiana or Mississippi have lower income tax in 2026?

Louisiana has a top income-tax rate of 3.00%; Mississippi has 4.00%. Louisiana is lower at the top bracket.

What about property taxes in Louisiana vs Mississippi?

Louisiana's average effective property tax rate is 0.55% (e.g., $2,200/year on a $400,000 home). Mississippi's rate is 0.65% ($2,600/year on $400K). Louisiana has the lower property tax burden.

Where is the minimum wage higher: Louisiana or Mississippi?

Louisiana's 2026 minimum wage is $7.25/hour; Mississippi's is $7.25/hour. Both have the same minimum wage.