July 21st 2025
By Ari Parker
Discover why Mississippi is emerging as an excellent retirement destination—with affordable living, mild climate, welcoming communities, and top-rated tax advantages for retirees.
Kiplinger ranks Mississippi as one of the most tax-friendly states for retirees, thanks to the state’s low property taxes. In addition to being an affordable place to live, many retirees also enjoy the mild climate and outdoor activities that Mississippi offers.
Mississippi is affordable, with a lower cost of living and tax-friendly policies for seniors.
There is a shortage of healthcare professionals in the state, which can make it difficult to access healthcare services, especially in rural areas.
Mississippi can be prone to natural disasters like hurricanes and tropical storms.
If you’re someone who doesn’t enjoy the cold, then Mississippi might appeal to you. While summers can be hot and humid, winters tend to be mild across the state. If you’re a gardener, this also offers you a long growing season.
The Gulf Coast and the Mississippi River offer you a chance to be near the water. You can simply enjoy the scenery or take on a popular activity like fishing, boating, or kayaking. If you’re a hiker, there are also scenic hikes through forests and wetlands, with plenty of opportunity to birdwatch. The golf in Mississippi is also great, with many courses being open year-round.
Mississippi’s rich history provides plenty to do. History buffs might enjoy a trip to the Mississippi Civil Rights Museum or Vicksburg National Military Park. And music lovers might want to check out the Delta Blues Museum or take in some live blues, gospel, or jazz, offered in many areas throughout the state.
With a slower pace of living and Southern hospitality, it’s only natural that Southern comfort food is popular: think gumbo, fried catfish, barbecue, and biscuits and gravy. And, you can’t forget dessert! Popular sweets in the South include pecan pie, peach cobbler, and Mississippi mud pie.
In this section, we’ll take a look at some more specific pros and cons to consider if you’re thinking about retiring in Mississippi.
Mississippi has a lower cost of living, with affordable housing and senior-friendly tax policies.
Mississippi’s smaller towns offer a close-knit community feel with a slower pace of life.
For those who don’t enjoy the cold, Mississippi’s winters are milder.
Summers can be hot and humid, which can be unpleasant if you don’t enjoy the heat.
Mississippi is prone to natural disasters, like hurricanes and tropical storms.
It can be difficult to access healthcare services, especially in rural areas.
Mississippi is a tax-friendly state for seniors. Here are some more details about how retirement taxes work in Mississippi.
No Social Security tax: Mississippi doesn’t tax Social Security income.
Retirement income exemptions: All retirement income is exempt from taxes in Mississippi, including IRA, 401(K), and pension income.
Homestead Exemption: The Homestead Exemption offers individuals who are 65 years or older an exemption on the first $75,000 of true value of their home.
Estate and inheritance taxes: There are no state or inheritance taxes in Mississippi.
Low property taxes: The average effective property tax rate is 0.76%. The median annual property tax payment is $1,145.
The cost of living in Mississippi is 10% lower than the national average and housing is 26% lower than the national average. This means that the average cost of a home is about $189,000, and the average rent is $1,500.
While the housing costs in Mississippi are well below the national average, there are some more expensive areas. In a city like Madison, the median home cost is about $403,000, whereas the median home cost in a mid-sized city like Meridian is about $108,000.
Like housing costs, utilities are significantly below the national average. Food costs are slightly below the national average.
The sales tax in Mississippi is 7%. Prescription drugs and medicines are not taxed.
While Mississippi, Tennessee, and Louisiana all offer warm weather and a lower cost of living, Mississippi tends to be the most affordable and tax-friendly. If you’re looking for a slower, quieter pace of life, then Mississippi might be a good fit. But, if you’re looking for more cultural activities to keep you busy, then Tennessee or Louisiana might be a better fit.
It’s also important to note that it can be more difficult to access healthcare facilities in Mississippi. If you have particular health needs, then you’ll want to research this before moving.
Although Mississippi is a more affordable state, there are some more luxurious cities to retire in, including:
Madison: A suburb of Jackson, with gated communities and country clubs.
Oxford: A college town that is home to Ole Miss. Has a small-town feel with bookstores and boutiques.
Pass Christian: A beachfront community with waterfront homes. Local businesses like antique shops, seafood restaurants, and cafes are easy to visit.
If you’re looking for a more affordable place to live while still enjoying the Mississippi lifestyle, you might consider:
Greenville: Located on the Mississippi River, Greenville offers a slower pace of life with gorgeous views.
Vicksburg: Overlooking the Mississippi River, Vicksburg has a significant history and is home to monuments like Vicksburg National Military Park.
Hattiesburg: A more urban affordable town with two universities and a hospital network.
Biloxi: An affordable waterfront location with a strong arts community and 26 miles of white sand beaches.
Some retirees enjoy the amenities and built-in social community that a retirement community offers. Some popular options include:
St. Catherine’s Village: Located in Madison, St. Catherine’s Village has over 160 acres of woods and rolling hills. There’s a large heated indoor pool, outdoor walking trails, a stocked 15-acre lake, and a regulation croquet course. There are several dining options, and assisted living, skilled nursing care, and memory care are also available.
The Preserve at Meridian: The Preserve is a pet-friendly community with a focus on social connection. You can play games in the game room, paint in the art room, or get a fresh haircut in the salon. Restaurant-style dining is offered. Assisted living and memory care are also available.
Olive Grove Terrace: Olive Grove Terrace offers restaurant-style dining and lots to do, including bingo and pet therapy visits. Assisted living and memory care are available.
Mississippi is ranked as the least healthy state in America’s Health Rankings’ Senior Report. A shortage of healthcare providers in the state can make it difficult to access healthcare services, especially for those living in rural areas.
Mississippi is part of the “Stroke Belt”, meaning that there is a higher incidence of stroke in these states. Preventive factors, like not smoking, eating a healthy diet, exercising, and managing high blood pressure, can help reduce the risk of stroke. Individuals living in more rural areas may also be more prone to loneliness, which can increase the risk of mental health conditions like depression. Ensuring that you are part of an active social community and seeking emotional and medical support when needed can help with this.
Although there is a shortage of healthcare professionals in Mississippi, there are some notable healthcare facilities, particularly in the more urban areas. These include the University of Mississippi Medical Center, Baptist Memorial Hospital, and North Mississippi Medical Center. These facilities offer specialized care.
Although healthcare can be difficult to access in the area, there are programs in place to address these concerns. The Mississippi Access to Care Network can help you find services like arthritis care and support, home-delivered meals, and home health aide.
There are about 643,000 Medicare beneficiaries in Mississippi, which makes up about 21% of the state’s population. Of these beneficiaries, about 57% are on Original Medicare, whereas 43% have switched to Mississippi Medicare Advantage plans.
If you want to learn more about Medicare in Mississippi, you can speak with a Chapter Medicare Advisor. Call us at (855) 900-2427 or schedule a free consultation.
If you enjoy a more relaxed pace of life, with plenty of outdoor activities, then Mississippi can be a good fit for you. Many retirees also enjoy the affordability that Mississippi offers.
