2026 tax year · Mississippi
RSU tax in Mississippi
A $60,000 vest costs $2,400 in Mississippi tax on top of the federal bill. And the federal share withheld is $2,970 short.
What a $60,000 vest actually costs in Mississippi
A single filer already earning $180,000 in salary. The vest stacks on top of that, so it fills the highest brackets rather than starting at the bottom:
| Withheld by your employer at 22.0% | $13,200 |
| Federal tax the vest actually costs | $16,170 |
| Federal shortfall, owed in April | $2,970 |
| Mississippi income tax on the vest | $2,400 |
| Total still to find | $5,370 |
The withholding rate is flat, 22.0% below $1 million of supplemental pay. And takes no account of your salary. That is why the gap grows the more you earn.
The gap widens with salary
| Salary | Withheld | Actually owed | Shortfall | Mississippi tax |
|---|---|---|---|---|
| $90,000 | $13,200 | $13,764 | $564 | $2,400 |
| $160,000 | $13,200 | $14,570 | $1,370 | $2,400 |
| $260,000 | $13,200 | $20,630 | $7,430 | $2,400 |
How Mississippi treats a vest
Mississippi taxes a vest as ordinary income like any other wages, adding $2,400 on top of the federal bill for $60,000 of vesting stock.
If you moved during the vesting period, the income is split between the states you worked in across it: Days worked in each state / total days in vesting period x RSU income = each state's allocation That is worked out day by day, not by where you lived on the vesting date.
Mississippi specifics that change the number
On the 2026 rate itself: phasing down toward 0% if revenue triggers met.
What the same vest costs around Mississippi
Total income of $240,000 in the states Mississippi borders:
| State | Its tax | vs Mississippi |
|---|---|---|
| Tennessee | No income tax | −$9,600 |
| Louisiana | $6,575 | −$3,025 |
| Arkansas | $9,283 | −$318 |
| Alabama | $11,960 | +$2,360 |
- Tennessee has no income tax at all, so the same work done there costs $9,600 less in state tax than it does in Mississippi.
- Louisiana would take $3,025 less, $6,575 against Mississippi's $9,600.
- Arkansas would take $318 less, $9,283 against Mississippi's $9,600.
- Alabama would take $2,360 more, $11,960 against Mississippi's $9,600.
RSU questions in Mississippi
Should I sell at vest?
Selling immediately raises the cash for the $5,370 you still owe and leaves no capital gain, because the sale price equals the price you were already taxed on. Holding turns it into an investment decision, any further gain is a capital gain, and any fall is a loss you take on shares you were already taxed on at the higher value.
I moved to Mississippi mid-vest, who taxes it?
Both states, split by workdays. The income is allocated across the vesting period, not assigned to wherever you happened to live on the vesting date. The state you left can still claim its share, and California, New York and Massachusetts pursue it hardest.