What’s the cost of living in Mississippi?
This article summarizes everything you need to know about the average cost of living in Mississippi, from tax rates to healthcare costs.
If you’re planning a move to Mississippi, here are some current statistics related to the cost of living in the state that could help you make up your mind.
Summary
Mississippi has the lowest cost of living in the US. According to research, the cost of living in Mississippi is 15 percent lower than the national average.
As of March 2023, the average home value in Mississippi is estimated to be around $162,292.
Mississippi has a flat income tax rate of 5 percent.
Utility costs play a significant role in Mississippi's overall cost of living; the average monthly cost is around $412.
Food and grocery costs per month are approximately $420. However, this will change from place to place.
According to MIT, a single adult with no children can expect to pay upwards of $5,400 on transportation in a year.
What is the average cost of living in Mississippi?
Mississippi is home to over 2.9 million people.
The state has the lowest cost of living in the US. According to research, the cost of living in Mississippi is 15 percent lower than the national average.
According to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks first in a list of states with the lowest to the highest cost of living.
What are the average housing costs in Mississippi?
As of March 2023, the average home value in Mississippi is estimated to be around $162,292, according to the Zillow Home Value Index as of March 2023.
It’s important to note that housing prices can significantly differ across various regions within the state. Here are some examples of typical home prices based on Zillow's data:
| City | Average Home Value |
|---|---|
| Jackson | $68,103 |
| Gulfport | $183,145 |
| Southaven | $251,450 |
| Hattiesburg | $192,348 |
| Biloxi | $216,118 |
The average price of rental apartments nationwide is $1,702, while the monthly rent in Jackson, MS is $982, on average. Understanding these costs in relation to the average salary in Mississippi is crucial for realistic budgeting.
If you’re considering moving to Mississippi or currently live in the state and want to understand your finances better, the best thing you can do is speak to a qualified financial advisor. A financial advisor works with you to create a unique financial plan based on your needs and goals. Finding a financial advisor is simple. By answering just a few questions, we'll connect you to an SEC-regulated financial advisor.
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What are the average utility costs in Mississippi?
Utility costs play a significant role in Mississippi's overall cost of living. According to Forbes, the average monthly cost is around $412.
| Utility | Average cost in MIssissippi |
|---|---|
| Energy bill | $135.31 |
| Monthly water bill | $23 |
| Internet | $30 |
| Natural gas | $63 |
| Phone bill | $114 |
| Streaming | $47 |
How much do groceries and food costs in Mississippi?
When it comes to groceries and food costs, Mississippi generally aligns with prices found elsewhere in the United States.
According to Zippia, those in Jackson pay over $423 on average each month. This is one of the highest grocery bills in the country.
According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.
How much does transportation cost in Mississippi?
Transportation costs, including gas prices and vehicle maintenance, impact Mississippi's overall cost of living.
According to MIT, a single adult with no children can expect to pay upwards of $5,400.
Gas prices in Mississippi are typically in and around the national average. At the time of writing, Mississippi was below the national average. These prices fluctuate over time.
It is also worth noting that prices can vary across different regions within the state.
What are the average healthcare costs in Mississippi?
Understanding healthcare expenses is crucial when considering the cost of living.
The specific healthcare costs in Mississippi can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates.
MIT estimates:
| Scenario | Annual healthcare expenditure |
|---|---|
| One adult, no children | $3,150 |
| One adult, one child | $9,384 |
| One adult, two children | $9,394 |
| Two adults (one working), no children | $7,033 |
| Two adults (one working), one child | $9,394 |
| Two adults (one working), two children | $9,319 |
| Two adults (two working), no children | $7,033 |
| Two adults (two working), one child | $9,394 |
| Two adults (two working), two children | $9,319 |
What are the average childcare costs in Mississippi?
Families in Mississippi currently pay around $5,937 per year for childcare for one child. This figure doubles for two children.
However, it's important to note that this figure can vary across the state.
How much tax will I pay if I live in Mississippi?
Mississippi’s has a flat 5 percent state income tax rate.
Here's a comparison of income tax rates among some neighboring states:
| State | Income Tax Rates |
|---|---|
| Mississippi | 5% |
| Alabama | 2% - 5% (Graduated Tax System) |
| Louisiana | 2% - 6% (Graduated Tax System) |
| Arkansas | 0.9% - 6.6% (Graduated Tax System) |
| Tennessee | No state income tax |
The sales tax rate in Mississippi is 7% for most tangible personal property and some services. However, there are certain categories and localities that may have additional sales taxes, which can vary.
The bottom line
The amount of money needed to live comfortably in Mississippi can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Mississippi. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning.
Get expert financial advice and learn more about the cost of living and how to manage it with an SEC-regulated advisor. Let Unbiased match you with the best financial advisor for your needs.
Writer
Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.