Mississippi, known as the "Magnolia State", is the most affordable state in America with the lowest housing costs nationwide. Here is everything you need to know about the cost of living in the Magnolia State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Mississippi for a single person earning the median income of $46,500/year:
Each category shows how Mississippi compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Mississippi.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Mississippi.
The most popular cities for residents and newcomers in Mississippi:
Housing is the single biggest expense in Mississippi, as it is everywhere. The median home price in Mississippi is $175,000, and the median rent for a one-bedroom apartment is $750/month. With a housing cost index of 58, Mississippi housing is 42% cheaper than the national average.
Housing in Mississippi is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
Mississippi has a state income tax rate of 5%. On the median household income of $46,500, you will pay approximately $2,325/year in state income tax ($194/month). This is below the national average — a tax advantage for Mississippi residents.
The average single person in Mississippi spends approximately $355/month on groceries. A family of four can expect to spend $888-$1,065/month. The food cost index of 93 means groceries in Mississippi are 7% below the national average.
Gas prices in Mississippi average $2.85/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,710/year in fuel costs.
Mississippi healthcare costs are 13% below the national average (index: 87). The average annual healthcare cost per person in Mississippi is approximately $5,220 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Mississippi averages $650/month ($7,800/year). This is below the national average, making Mississippi more family-friendly from a financial perspective. Many families in Mississippi find that one parent staying home is more cost-effective when two or more children need daycare.
Mississippi is an excellent choice for anyone prioritizing affordability. Your dollar stretches 17% further here than the national average. The trade-off may include fewer big-city amenities in some areas, but cities like Jackson and Gulfport offer a good balance of affordability and quality of life.
See all Mississippi financial calculators:
Mississippi (MS) has a cost of living index of 83, meaning it is 17% cheaper than the US average. Housing is the biggest factor with an index of 58. The median rent is $750/month and the median home price is $175,000. Mississippi ranks #1 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Mississippi is approximately $60,450/year ($5,038/month). For a family of four, aim for $102,300/year. This covers housing at 30% of income, groceries ($355/mo), transportation, healthcare, and a 15% savings rate. The median household income in Mississippi is $46,500.
The median rent for a one-bedroom apartment in Mississippi is approximately $750/month. A two-bedroom averages $1,013/month. Rent varies significantly by city: Jackson, Gulfport, Southaven are the most popular metro areas. Housing in Mississippi is affordable compared to the national average.
Mississippi is an excellent choice for affordability. With a cost of living 17% below the national average and median rent of just $750/month, your money goes significantly further here. Top cities include Jackson, Gulfport, Southaven.
The most affordable areas in Mississippi are typically smaller cities and rural areas away from the major metros. Within Mississippi, costs can vary 20-40% between the most expensive city (Jackson metro) and more affordable areas. Biloxi and Hattiesburg tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Mississippi for a single person is approximately $355 ($888 for a family of four). Mississippi food costs are 7% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Mississippi is approximately $140. Total utilities (electric, gas, water, internet) average $308/month. Mississippi utilities are 4% below the national average. Utility costs are manageable for most households.
Mississippi has a state income tax rate of 5%. On the median household income of $46,500, that is approximately $2,325/year in state income tax. This is below the national average — a tax advantage.