Live in Georgia, Work in Mississippi: Which State Taxes Your Paycheck?
Answer
Two returns, one credit. Mississippi has the first claim on wages earned inside the state and withholds accordingly. Georgia then taxes you as a resident on everything and gives credit for what Mississippi already took, capped at what Georgia would have charged on that same income.
Last verified
Two states can lawfully tax the same wages: Mississippi because the work happened there, Georgia because you live there. Nothing prevents the overlap in advance — it is unwound afterwards, on the Georgia return, through the credit for taxes paid to another state.
A Georgia resident taxed by another state on the same income claims the credit for taxes paid to other states on Form 500 Schedule 2. The credit is capped at the Georgia tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
What you file
- 1Nonresident return · MississippiForm 80-205
File the Mississippi nonresident return FIRST — you need the Mississippi tax figure before you can complete Georgia.
- 2Resident return · GeorgiaForm 500 Schedule 2
File a Georgia resident return reporting all income, then claim the credit for tax paid to Mississippi. The credit is capped at what Georgia would have charged on that same income, so if Mississippi taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Georgia | Mississippi | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — flat |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form 500 with Schedule 3 | Form 80-205 |
| Credit for other-state tax | Form 500 Schedule 2 | Form 80-160 |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Georgia Department of Revenue | Mississippi Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Mississippi and working in Georgia gives:Both states — credit offsets the double tax.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: Georgia → MississippiHome state only
- 1099 contractor: Georgia → MississippiHome state, plus the client state if you work there
- Moved mid-year: Georgia → MississippiTwo part-year returns
Other Georgia pairs
Questions people actually ask
I live in Georgia and work in Mississippi. Which state takes the tax out of my paycheck?
Two returns, one credit. Mississippi has the first claim on wages earned inside the state and withholds accordingly. Georgia then taxes you as a resident on everything and gives credit for what Mississippi already took, capped at what Georgia would have charged on that same income.
Which state should my employer be withholding for?
Mississippi. The wages are sourced to Mississippi, so Mississippi withholding is correct and there is no Georgia withholding to set up.
Will I end up paying tax twice on the same income?
Not twice over, but you will pay the higher of the two rates. Georgia gives residents a credit for tax paid to Mississippi on the same income, claimed on Form 500 Schedule 2. The credit is capped at the Georgia tax on that income, so if Mississippi taxes it more heavily the excess is not refunded by either state.
How current is this?
The Georgia and Mississippi rules on this page were last checked against Georgia Department of Revenue and Mississippi Department of Revenue on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Georgia Department of Revenue — individual income taxaccessed 2026-08-07
- Mississippi Department of Revenue — individual income taxaccessed 2026-08-07