Mississippi Bonus Tax Calculator 2026
Mississippi adds the bonus to regular pay and withholds the difference; under the 2026 formula that is 4.0% of the bonus once your annualized taxable pay is over $10,000.
Bonus check calculator
Aggregation, by instruction
Pub 89-700, the Department of Revenue's Withholding Income Tax Tables and Employer Instructions, gives two procedures for a bonus paid at a different time from regular wages. If no tax was withheld from regular wages, the employer adds the bonus to the current or last regular payroll and withholds on the total. If tax was withheld, the employer may add the bonus to that payroll, figure the tax on the combined amount, subtract what was already withheld and take the rest from the bonus. There is no flat supplemental rate.
The 2026 computer payroll formula
The Department's flowchart for periods in 2026 annualizes gross pay, subtracts the exemption amount from Form 89-350 and a standard deduction ($2,300 single or married with both spouses employed, $3,400 head of family, $4,600 married with one spouse employed), and taxes taxable income above $10,000 at 4.0%. The result is rounded to whole dollars each period. For the standard example the bonus adds $200.00; for a low-paid worker on $400 every two weeks, whose regular pay sits under the $10,000 threshold, it adds $197.00.
A safety valve for over-withholding
Pub 89-700 adds that if these procedures "result in substantial over withholding," the employer may compute withholding "at the percent corresponding to the highest tax bracket the employee is expected to reach" on the annual return.
| Rule | Aggregate: 4.0% of annualized taxable income above $10,000 |
|---|---|
| Valid through | December 31, 2026 |
| Documents | Pub 89-700 Withholding Income Tax Tables and Employer Instructions; Computer Payroll Accounting flowchart for periods in 2026 (Pub 89-700-25-1 revised 1/13/2026; flowchart revised 8/13/25) |
| Agency | Mississippi Department of Revenue |
| Federal income tax | −$1,100.00 |
| Social Security | −$310.00 |
| Medicare | −$72.50 |
| Mississippi income tax | −$200.00 |
| Net | $3,317.50 |