The short version
- Social Security taxed?
- No
- Income tax
- Flat 4.0% and falling
- Property tax on a $300,000 home
- ≈ $1,740 / yr ($145 / mo)
- Everyday cost index (U.S. = 100)
- 87
- January / July high
- 57°F / 92°F
- Sales tax (state + local avg)
- 7.06%
Retiring in Mississippi
The lowest cost of living in America and zero tax on any retirement income. Watch out: rural healthcare and public services are thin.
How Mississippi taxes your retirement income
Social Security: not taxed at all.
Pensions: All retirement income exempt — pensions, 401(k)s, and IRAs.
401(k) and IRA withdrawals: 401(k)/IRA withdrawals fully exempt.
The setup: Flat 4.0% and falling.
Property tax & senior breaks
The average effective property tax rate is about 0.58% — roughly $1,740 a year ($145 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Extra homestead exemption for homeowners 65+.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 13% below the U.S. average. The combined state and average local sales tax is 7.06%.
Weather
January days top out around 57°F and July days around 92°F, with roughly 215 sunny days a year. Watch out for: Hurricanes on the coast, tornadoes inland, humid summers.
Healthcare
UMMC in Jackson is the anchor; rural healthcare access is a real weakness.