Living in Mississippi is less expensive than it is on average across the U.S. as a whole. According to data from the Bureau of Economic Analysis, goods and services in the state cost 14.0% less than they do on average nationwide. Compared with all other states, Mississippi has the second lowest overall cost of living.
In general, living in dense, urban metro areas is more expensive than living in more rural areas. Mississippi is home to three metropolitan areas. The most expensive in the state is the Jackson metro area, where the cost of goods and services is 10.8% lower than the national average and 3.2% higher than the statewide average.
Mississippi Housing Costs
Housing is one of the largest components of cost of living. In Mississippi, the typical home is worth $114,500, $90,400 less than the national median home value of $204,900. Across the state, the median price of a home built in 1939 or earlier is $102,800, while the median value of a home built in 2014 or later is $190,400.
The typical renter in Mississippi spends $762 a month on housing, $261 less than the $1,023 national median monthly rent. Monthly rent for a one-bedroom in the state is $600, while the typical rent for a unit with five or more bedrooms is $899.
Across the state, 31.8% of occupied homes are rented, less than the 36.2% national average and the 16th lowest renter rate of any state.
Mississippi Transportation Costs
Transportation can also be a significant component of cost of living. In Mississippi, 94.5% of commuters drive to work, compared to 85.5% of commuters nationwide. On average, the typical motorist in the state drives 13,673 miles a year. Taking into account average fuel economy and the average cost of gas -- regular fuel cost an average of $1.88 a gallon in Mississippi in mid-2020 -- the average motorist in the state can expect to spend $1,062 on gas alone in one year.
Other transportation costs, like car insurance premiums, can vary by state. In Mississippi, the average car insurance premium is $912, less than the $1,517 national average, according to data from Insure.com. And according to data from the EPI, the average single adult in the state spends $10,527 a year on transportation.
Mississippi Health Care Costs
Out-of-pocket costs and insurance premiums for health care -- assuming at least a basic level of health insurance coverage -- are in line with the national average in Mississippi. Average health care costs for a single adult in the state total $4,217 per year, compared to the national average of $4,266. For a family of four, average annual health care costs total $12,674 -- $275 less than the comparable national average of $12,950.
Mississippi Food Costs
Food is another every day expense that has a significant impact on the overall cost of living in an area. Data from the U.S. Department of Agriculture shows that the cost of food varies from state to state.
In Mississippi, a single adult spends an average of $3,202 on food annually, and a family of four spends $9,248 on average. For context, the nationwide average annual food expenditure is $3,240 for a single adult and $9,354 for a family of four. These estimates are calculated for a nutritionally adequate diet of food purchased at a grocery store for at home preparation.
Mississippi Child Care Costs
For families, child care adds thousands of dollars to overall annual spending. The average annual cost of child care for a 4 year old child in Mississippi is $3,723, well below the national average of $8,903. Similarly, it costs an average of $5,784 to care for a 4 year old child and an 8 year old child per year in Mississippi compared to the national average of $15,853.
Few expenses vary as much from state to state as taxes. Accounting for state and federal income taxes, as well as Social Security contributions and Medicare payroll, the average adult working in Mississippi pays $5,784 annually in taxes -- below the national average of $6,542.
Excluding federal taxes and incorporating state and local taxes such as property and sales taxes -- the state and local tax burden in Mississippi is lower than the average across the U.S. as a whole. Per capita state tax collections in Mississippi come out to $2,642 per year, compared to the $3,151 average across all states.
Cost of Living by County or County Equivalent
Just as cost of living varies from state to state, it also varies from place to place within states. In Mississippi, Madison County, home to the city of Madison, has the highest overall cost of living for a family of four at $76,606 per year, well above the statewide average of $65,454 per year.
Meanwhile, Scott County is the least expensive place in Mississippi. The average annual cost of living for a family of four in the area is just $57,196, $8,259 less than it is across the state as a whole. Forest is the most populous community in Scott County.
Note that monetary figures are rounded to the nearest dollar and calculated differences may not always add up perfectly to the nearest dollar.
Read More About Cost of Living
24/7 Wall St. has published detailed cost of living analysis for all 50 states and nearly 30,000 cities across the country. Search for a city or state to view here:See a list of all available cities in Mississippi by clicking here.
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