How is Mississippi for retirement?

If you are looking for a warm state with southern charm, Mississippi might be worth considering. While the Magnolia state may not be as popular as Florida when ranking retirement destinations, it is a secret gem for retirees looking for an affordable state to stretch their retirement dollars.

Mississippi ranks among the best states to retire due to its low cost of living, retiree-friendly taxes, natural beauty, good food, warm weather, and rural lifestyle. The state exempts all retirement incomes from state income taxes, including Social Security, pension income, and distributions from retirement savings plans like 401(k), 403(b), IRA, and SEP IRAs.

Is Mississippi a tax-friendly state for retirement?

Mississippi is one of the most tax-friendly states for retirement. The state exempts all retirement incomes from state income taxes, including Social Security retirement income, pension income, IRA distributions, 401(k) distributions, etc.

Other incomes exempted from state income taxes include withdrawals from 457(b), SEP IRAs, and 403(b) plans. However, if you plan to work in retirement, the employment income you earn will be subject to state income taxes.

How much are sales taxes in Mississippi?

Mississippi has a sales tax rate of 7%, which is collected across all cities and counties. However, residents in Jackson, the state capital, pay an additional 1% in sales taxes. The sales tax is levied on all tangible goods and services purchased across the state, including groceries. However, prescription drugs are exempt from the state sales taxes.

How much are property taxes in Mississippi?

Mississippi has a below-average property tax rate, and it is based on the rates and assessed property values during the preceding year. For residential properties, the assessed value is 10% of market value.

The median property tax rate across the state is $1,097, which is one of the lowest tax rates in the nation. Also, home values in Mississippi are relatively low, and the median home value is approximately half of the national average.

If you own and use your home as your primary residence, you will be eligible for the Mississippi homestead exemption. This exemption offers a credit of up to $300 in property taxes, based on the first $7,500 of the home value. If you are age 65 or older, you may be eligible for the seniors' exemption, which exempts the first $7,500 in home value from property taxes.

Pros of retiring in Mississippi

Low cost of living

Mississippi has one of the lowest cost of living in the United States, and you will pay less for groceries, utilities, gas, and transportation. Mississippians also enjoy the cheapest housing costs, with home prices being priced 40% less than the national median home prices. A single-family home costs about $140,818, while the cost of renting a two-bedroom apartment is just $777.

Good food

Mississippi has some of the most satisfying comfort foods, and it is popular for fried foods like fried chicken, fried okra, and fried pork. If you a fan of carb-heavy foods, you will have plenty of options, including cornbread, macaroni and cheese, and mashed potatoes. Also, as one of the states on the Gulf Coast of Mexico, you will find plenty of seafood, including oysters and shrimp.

Southern hospitality

Mississippians are friendly and generally welcoming, and this makes the state feel homely. When you meet the locals, you will experience a mix of politeness, warmth, charm, and kindness. Southern hospitality explains why the state is sometimes known as "The Hospitality State."

Natural beauty

The state offers a variety of landscapes, from millions of acres of lush forests, scenic rivers, beautiful beaches along the 62 miles of shoreline, and geologic rock formations. The natural beauty provides plenty of outdoor recreation opportunities.

Rural countryside

At least half of Mississippi’s population lives in rural areas, and the state is ranked as the 4^th most rural state in the country. The most populous city in the state is Jackson with a little over 100, 000 people, followed by Gulfport with about 50,000 people. The rest of the towns are mainly rural, and they have some of the lowest population densities per square mile.

Historic sites

If you want to dig into America’s past, there are plenty of sites to learn history. You can visit the Vicksburg National Military Park, to explore the preserves of Civil War battlefields. You can also explore antebellum architecture in the state; an example is Stanton Hall in downtown Natchez.

Cons of retiring in Mississippi

Hot and humid summers

During summer, Mississippi ranks as one of the hottest and most humid states, with temperatures reaching highs of 90 degrees Fahrenheit from June to August. In some days, temperatures of 100 degrees Fahrenheit are not uncommon.

Prone to natural disasters

Although Mississippi does not lie on the tornado alley, it is still a high-risk area for tornadoes. The state registers more than 40 tornadoes per year, but still below the 140 tornadoes that Texas registers every year. Also, its location on the Gulf Coast makes it susceptible to hurricanes; the state has recorded eight major hurricanes over time.

Poverty

Mississippi has one of the highest poverty rates in the country, with 21% of the residents living below the poverty line. The state has one of the lowest average incomes across all states at $21,000 and the lowest median household income at $39,000.

Poor healthcare

Mississippi ranks as one of the worst states for healthcare, and it ranks last in access to healthcare, healthcare costs, average emergency room wait time, life expectancy, and quality of healthcare. Also, the state ranks last for exercising and worst for obesity, likely due to its love for fried foods like chicken and pork.

Limited entertainment options

As a mostly rural state, you will have fewer entertainment options in the state. If you are seeking a wide range of entertainment options like theatres, museums, and nightlife, you will need to travel long distances to access these options.

Best places to retire in Mississippi

Jackson

Jackson is the capital city of Mississippi, and it is an ideal place to retire for retirees seeking big-city amenities with a small-town feel. It has a vibrant art scene, and you can find art galleries and theatres. The city is also popular for its historical landmarks.

Hattiesburg

If you want to retire in a college town with a vibrant arts scene, Hattiesburg is a good option. The city hosts the University of Southern Mississippi, which has over 15,000 students. Residents are treated to hundreds of dance, performing arts, and musical performances every year. If you are a sports fan, you will enjoy supporting the university’s football, baseball, and basketball teams.

Meridian

Meridian is one of the most affordable places to retire in Mississippi, and it has some of the lowest property values. The median home value in 2022 was only $136,900. You can explore the hall of the famous musicians, Mississippi's Arts + Entertainment Experience, and the Bonita Lakes Park. It is also popular for its architectural masterpieces.

Oxford

Oxford offers a small-town feel, with a population of under 26,000. It is home to the University of Mississippi, and it offers some tuition-free courses for seniors interested in life-long learning opportunities. The city has public places for walks and picnics, and other amenities for families.

Pearl

Pearl is a suburb of Jackson, the capital city of Mississippi, and it has one of the lowest cost of living. It has many popular historical sites and museums such as the Mississippi Museum of Natural Science. You will find many dining options, nightlife, and art galleries.