2025 Tax Year

Mississippi Side Hustle Tax Calculator

Calculate your Mississippi state tax (4.40%), federal tax, and self-employment tax on 1099 income.

MS4.40%

3 million residents

No signup required

2025 rates

Always free

Last updated: January 2026 · Data from IRS Rev Proc 2024-40

Filing Status

State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Mississippi side hustlers benefit from one of the simplest and lowest tax systems in the South. The Magnolia State has a flat 4.4% tax rate on income over $10,000 for 2025, with no tax at all on your first $10,000. Mississippi is on a path to potentially eliminate income tax entirely by 2040.

Mississippi Tax Guide

How Side Hustle Taxes Work in Mississippi

Mississippi uses a simple flat tax structure:

**Mississippi state tax (2025):** - 0% on the first $10,000 of taxable income - 4.4% flat rate on income over $10,000

**No local income taxes:** - Jackson and all Mississippi cities have no income taxes - Only the state rate applies

**Future reductions:** - Rate scheduled to drop to 4.0% in 2026 - Legislation aims for full elimination by 2040

Example

What Mississippi Side Hustlers Owe

Let's say you're a single filer in Jackson with a $45,000 W-2 job and $12,000 in side hustle income from selling handmade goods, with $1,500 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $10,500 - Federal SE tax (15.3% of 92.35%): ~$1,485 - Federal income tax on side income: ~$2,310 (22% bracket) - Mississippi state tax (4.4% on amount over $10k): ~$462 - **Total additional tax: ~$4,257**

Your effective tax rate on the side hustle is about 41%.

Important Dates

Mississippi Tax Deadlines 2025

Mississippi estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 15, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use Mississippi Form 80-106 for state estimated tax payments.

Save Money

Common Deductions for Mississippi Freelancers

Mississippi freelancers benefit from a $10,000 zero-bracket plus low 4.4% rate. **Home office expenses**: Claim dedicated business space using simplified ($5/sq ft) or actual expense method. **Business mileage**: 67 cents/mile for 2025; important for those serving clients in Jackson, Gulfport, or across the state. **Equipment and supplies**: Computers, cameras, tools, and office supplies are deductible. **Professional services**: Accounting, legal, and tax preparation fees are fully deductible. **Health insurance premiums**: Self-employed individuals can deduct 100% of health insurance costs. **Retirement contributions**: SEP-IRAs and Solo 401(k)s reduce federal AGI, which Mississippi uses as its starting point. **Marketing expenses**: Website costs, business cards, and promotional materials are deductible. Mississippi's $10,000 zero-bracket means your first $10,000 of taxable income is tax-free at the state level—a built-in benefit for side hustlers. All Schedule C deductions reduce your MS taxable income, potentially keeping more income in the zero bracket.

Common Questions

Mississippi Side Hustle Tax FAQ

What is Mississippi's tax rate?

Mississippi has a 4.4% flat rate on income over $10,000. The first $10,000 of taxable income is tax-free.

Is Mississippi eliminating its income tax?

Mississippi is on a path to potentially eliminate income tax by 2040. The rate drops to 4.0% in 2026, then 3% by 2030.

Does Mississippi have local income taxes?

No, Mississippi has no local or city income taxes. The state rate is your only Mississippi income tax.

Do I need to register my side hustle in Mississippi?

Sole proprietors using their legal name don't need state registration. If using a trade name (DBA), register with the Secretary of State. LLCs must register with the Mississippi Secretary of State. Sellers may need a Sales Tax Permit.

How does the $10,000 zero-bracket work?

Mississippi doesn't tax the first $10,000 of taxable income. Only income above $10,000 is taxed at 4.4%. This provides automatic relief for lower-income side hustlers and those with significant deductions.