Live in Mississippi, Work in Louisiana: Which State Taxes Your Paycheck?
Answer
Expect withholding in Louisiana and a return in both. Mississippi and Louisiana hold no reciprocal agreement, so the overlap is resolved after the fact: Louisiana taxes the Louisiana-source wages, and your Mississippi resident return claims a credit for that tax against the Mississippi liability on the same income.
Last verified
Without an agreement between Mississippi and Louisiana, the overlap is handled after the fact rather than prevented. That is why the filing order matters: the Louisiana figure is an input to the Mississippi return, so completing Mississippi first means doing it twice.
A Mississippi resident taxed by another state on the same income claims the credit for taxes paid to other states on Form 80-160. The credit is capped at the Mississippi 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 · LouisianaForm IT-540B
File the Louisiana nonresident return FIRST — you need the Louisiana tax figure before you can complete Mississippi.
- 2Resident return · MississippiForm 80-160
File a Mississippi resident return reporting all income, then claim the credit for tax paid to Louisiana. The credit is capped at what Mississippi would have charged on that same income, so if Louisiana taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Mississippi | Louisiana | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — flat |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form 80-205 | Form IT-540B |
| Credit for other-state tax | Form 80-160 | Schedule G (Form IT-540) |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Mississippi Department of Revenue | Louisiana Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Louisiana and working in Mississippi 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: Mississippi → LouisianaHome state only
- 1099 contractor: Mississippi → LouisianaHome state, plus the client state if you work there
- Moved mid-year: Mississippi → LouisianaTwo part-year returns
Other Mississippi pairs
Questions people actually ask
I live in Mississippi and work in Louisiana. Which state takes the tax out of my paycheck?
Expect withholding in Louisiana and a return in both. Mississippi and Louisiana hold no reciprocal agreement, so the overlap is resolved after the fact: Louisiana taxes the Louisiana-source wages, and your Mississippi resident return claims a credit for that tax against the Mississippi liability on the same income.
Which state should my employer be withholding for?
Louisiana. The wages are sourced to Louisiana, so Louisiana withholding is correct and there is no Mississippi 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. Mississippi gives residents a credit for tax paid to Louisiana on the same income, claimed on Form 80-160. The credit is capped at the Mississippi tax on that income, so if Louisiana taxes it more heavily the excess is not refunded by either state.
How current is this?
The Mississippi and Louisiana rules on this page were last checked against Mississippi Department of Revenue and Louisiana 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.
- Mississippi Department of Revenue — individual income taxaccessed 2026-08-07
- Louisiana Department of Revenue — individual income taxaccessed 2026-08-07