What’s the cost of living in Mississippi?
When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. 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.
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% lower than the national average.
According to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 1st in a list of states with the lowest to the highest cost of living.
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.
Typical Home Prices in Mississippi (Zillow Data):
Southaven - $251,450
Biloxi - $216,118
Hattiesburg - $192,348
Gulfport - $183,145
Jackson - $68,103
The average price of rental apartments nationwide is $1,702, while the monthly rent in Jackson, MS is $982, on 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.
Average Monthly Utility Costs in Mississippi:
Phone bill - $114
Energy bill - $135.31
Natural gas - $63
Streaming - $47
Internet - $30
Monthly water bill - $23
Grocery 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.
Transportation costs 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.
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.
Annual Health Expenditure in Mississippi Estimated by MIT:
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
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.
Taxation in Mississippi
Mississippi’s state income tax rate works on a graduated system, the rate ranges between 3% and 5%.
Taxes in Mississippi compared to neighboring states:
Mississippi -Income Tax Rate: 3% - 5% (Graduated Tax System)
Alabama -Income Tax Rate: 2% - 5% (Graduated Tax System)
Louisiana Income Tax Rate: 2% - 6% (Graduated Tax System)
Arkansas Income Tax Rate: 0.9% - 6.6% (Graduated Tax System)
Tennessee Income Tax Rate: 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.
Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.
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.