Mississippi tips tax calculator and federal tipped wage

Mississippi taxes tips like any other wages, whether they come from customers or through the employer, and — with no state minimum wage law — the federal $2.13 cash wage is the floor.

Your Mississippi tips

State where you work Qualified tips this year

Voluntary cash and card tips on your W-2, 1099 or Form 4137 — not service charges.

Tax year

2025202620272028

Filing status Other income in your AGI

Wages without the tips, plus any other income (both spouses if filing jointly).

Your occupation The 71 Treasury Tipped Occupation Codes in the final rule (TD 10044).

How you are paid

Employee (W-2) Self-employed (1099)

More options

Itemized deductions (if larger than the standard deduction)

State marginal rate override (%) Leave blank to use the state’s published rate for your bracket.

Federal income tax saved in 2026Deduction $18,000 at 12% $2,160

$18,000 of the $25,000 cap used (72%)

Qualified tips	$18,000
After the $25,000 cap	$18,000
Income phase-out (MAGI $48,000)	$0
Tips deduction	$18,000
Federal tax before → after	$3,580 → $1,420
Social Security & Medicare still due on tips	$1,377
Mississippi 2026: Tips stay taxable in this state	$0
Total income tax saved	$2,160

What the estimate leaves out

Tips on the Mississippi return

The Department of Revenue’s FAQ answers that tips and gratuities are subject to Mississippi income tax and withholding, and Mississippi computes its own taxable income rather than starting from the federal deduction. No Mississippi tips exclusion had been enacted for 2025 or 2026 when we checked, so a Biloxi casino dealer’s tips stay in state income.

Mississippi figures

Cash wage / minimum	$2.13 / $7.25
In force	July 1, 2026
Next change	none scheduled
Tipped threshold	More than $30 a month in tips
Tips on the 2025 return	tips stay taxable in this state. The Department’s FAQ answers that tips and gratuities are subject to Mississippi income tax and withholding. Source: Mississippi Department of Revenue
Tips on the 2026 return	tips stay taxable in this state. No Mississippi tips exclusion had been enacted when we checked. Source: Mississippi Department of Revenue

When the FLSA is the only law

Mississippi has never enacted a minimum wage. Employers covered by the FLSA may pay $2.13 in cash and take a $5.12 tip credit, but must make up any shortfall to $7.25 for each workweek; complaints go to the U.S. Department of Labor.

A Biloxi casino dealer

Gambling dealers are Treasury code 201, so $26,000 of tokes qualify up to the cap: a $25,000 deduction saving $2,810 federally. Mississippi taxes them. A 36-hour week with $260 of tips already exceeds $261, so no make-up is due.

Check a Mississippi workweek

Employer make-up owed$2.13 cash wage + tips must reach $7.25 an hour. $14

Minimum for the hours	$232
Cash wage paid	$68
Tips counted toward the minimum	$150
Your effective hourly pay	$7.25

How the make-up rule works

Where these figures come from

Federal rules: how the deduction works. Nearby: Tennessee, Alabama, Louisiana, Arkansas.

Figures verified against primary sources on October 5, 2026