How Mississippi withholds on a bonus
Mississippi withholds a separately paid bonus at its flat rate, 4% for 2026 after the January cut from 4.4%. On a $10,000 bonus the percentage method withholds $2,200 federal, $620 Social Security, $145 Medicare and $400 Mississippi, leaving $6,635. There are no local income taxes in Mississippi. The rate is scheduled to fall to 3.75% in 2027 and 3.5% in 2028 under HB 1, and the supplemental rate falls with it.
Because the rate is flat above $10,000 of taxable income, the aggregate method leaves Mississippi's line almost unchanged and raises the federal line to about $2,700 for a $60,000 earner paid every two weeks. The $10,000 zero bracket, $2,300 deduction and $6,000 exemption have been used up by salary, so a bonus is taxed at the full 4% on the return and the state withholding settles even.
What the withholding means for your Mississippi return
Any refund on a Mississippi bonus is federal: a $60,000 single filer's marginal federal rate is 12% up to $50,400 of taxable income and 22% above, so a $10,000 bonus is really taxed at about $1,450 federal against $2,200 withheld, and roughly $750 returns. Tennessee residents who earn a bonus for work in Mississippi are withheld for Mississippi on it. The Mississippi paycheck calculator shows the marginal rates for any salary. Exemptions on Mississippi Form 89-350 do not reduce the flat 4% withheld from a separately paid bonus; they apply only under the aggregate method, where the bonus is combined with the period's regular wages.