Question 1

What is the Mississippi SUTA rate for new employers in 2026?

Accepted Answer

New employers in Mississippi pay 1% state unemployment tax on the first $14,000.00 of each employee's wages. 1.0% in year one, 1.1% in year two, 1.2% in year three and later until an experience rate applies. Established employers receive an annual rate notice based on their history.

Question 2

What is the Mississippi unemployment tax wage base for 2026?

Accepted Answer

Mississippi taxes the first $14,000.00 of each employee's wages for unemployment insurance. Unchanged from 2025. Wages above that amount are not subject to SUTA.

Question 3

How much does it cost to hire an employee in Mississippi?

Accepted Answer

Using a typical scenario — a $60,000 salary, Mississippi's new employer SUTA rate, office workers' comp, $500/month health insurance and a 3% retirement match — the total annual cost comes to about $72,722.00, or 1.21 times the salary. Use the calculator above with your own numbers.

Question 4

Does Mississippi have paid family leave contributions?

Accepted Answer

No, Mississippi does not currently run a state paid family and medical leave insurance program, so there is no mandatory PFML payroll contribution.

Question 5

Do employers in Mississippi pay state income tax on employee wages?

Accepted Answer

Mississippi has a state income tax on wages, but it is withheld from the employee's pay — it is not an employer cost. Employers are responsible for withholding and remitting it correctly.

Wages	$60,000.00
Social Security (6.2%)	$3,720.00
Medicare (1.45%)	$870.00
FUTA (federal unemployment)	$42.00
State unemployment (SUTA)	$140.00
Workers' comp	$150.00
Total annual cost	$64,922.00

New employer SUTA rate	1%1.0% in year one, 1.1% in year two, 1.2% in year three and later until an experience rate applies.
Experienced employer SUTA range	0% – 5.4%
SUTA taxable wage base	$14,000.00Unchanged from 2025.
Max SUTA per employee per year	$140.00
Paid family/medical leave program	No
State income tax on wages	Yes — employers withhold; not an employer cost
Source	Mississippi unemployment insurance agencyVerified 2026-10-11

State	New employer rate	Wage base	Max SUTA per employee
Mississippi	1%	$14,000.00	$140.00
Tennessee	2.7%	$7,000.00	$189.00
Alabama	2.7%	$8,000.00	$216.00
Louisiana	Varies	$7,000.00	Varies
Arkansas	2%	$7,000.00	$140.00

Mississippi Employee Cost Calculator (2026)

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