2026 tax year · Mississippi
Delivery and rideshare driver taxes in Mississippi
DoorDash, Uber, Lyft and the rest report your gross and withhold nothing. The gap between that and what you are taxed on is mileage, in Mississippi that gap is worth $3,786 in tax.
Take a driver who grossed $42,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the delivery and rideshare driver page $14,505 comes off and $27,495 is left as taxable profit. That profit is what Mississippi and the IRS charge against.
What that leaves you owing in Mississippi
Mississippi taxes income at a flat 4% for 2026, applied on top of federal income tax and self-employment tax.
| Self-employment tax | $3,885 |
| Federal income tax | $756 |
| Mississippi income tax | $1,022 |
| Total tax | $5,663 |
| Effective rate on gross | 13.5% |
Earning more in Mississippi
A single filer taking the standard deduction, standard mileage method, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Mississippi tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time, a few evenings | $15,000 | $4,826 | $10,174 | $378 | $1,816 | 12.1% |
| Steady side income | $42,000 | $13,365 | $28,635 | $1,064 | $5,951 | 14.2% |
| Full-time dashing | $68,000 | $22,275 | $45,725 | $1,700 | $10,446 | 15.4% |
Mississippi specifics that change the number
On the 2026 rate itself: phasing down toward 0% if revenue triggers met.
Driving across a Mississippi line
Driving income is sourced to where the wheels were, not where you live. Take a fare or a delivery that ends in the next state and that state can claim the income earned inside it. Most drivers near a border never file the second return, the amounts are small and the platforms do not split earnings by state. But the obligation exists, and it is the state you drove INTO that would come asking.
On $27,495 of profit, what the states around Mississippi would charge:
| State | Its tax | vs Mississippi |
|---|---|---|
| Tennessee | No income tax | −$1,100 |
| Louisiana | $425 | −$675 |
| Arkansas | $995 | −$105 |
| Alabama | $1,335 | +$235 |
- Tennessee has no income tax at all, so the same work done there costs $1,100 less in state tax than it does in Mississippi.
- Louisiana would take $675 less, $425 against Mississippi's $1,100.
- Arkansas would take $105 less, $995 against Mississippi's $1,100.
- Alabama would take $235 more, $1,335 against Mississippi's $1,100.
Delivery and rideshare driver tax questions in Mississippi
How much should a Mississippi driver set aside?
About 13.5% of gross on the $42,000 example, $5,663 across self-employment tax, federal income tax and $1,022 to Mississippi. In practice that means moving about $135 of every $1,000 payout into a separate account the day it lands, and sending roughly $1,416 to the IRS each quarter, no platform withholds any of this for you. Set aside from each payout rather than finding it in April.
Does the $42,000 on my 1099-NEC match what Mississippi taxes?
No. Mississippi taxes profit, not gross. After $14,505 of deductions the taxable figure is $27,495, so the Mississippi bill is $1,022 rather than what gross alone would suggest. The form reports what the platform paid out, it knows nothing about your costs, and no one subtracts them for you. On this example 35% of the gross never becomes taxable income, but only for the driver who kept the records to prove it.