Total Range for 2025
| Base state sales tax rate | 7% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-1% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 7%-8% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 20th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Mississippi is 7%, but since the local rates range from 0-1% the total sales tax range is 7-8%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
Let’s say you’re running a small clothing store in Jackson, Mississippi. Here’s an example of how to calculate the sales tax on a purchase:
- Item Price: A customer buys a shirt for $25.00.
- Sales Tax Rate: Jackson has a 1% local sales tax on top of the 7% state rate, for a combined rate of 7% + 1% = 8%.
- Sales Tax Calculation: Multiply the sales price by the sales tax rate: $25.00 x 8% = $2.00
- Total Price with Tax: Add the sales tax amount to the original price: $25.00 + $2.00 = $27.00
Nexus: Why do you need to collect sales tax in Mississippi?
If you’re selling goods and services in Mississippi then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Mississippi, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within Mississippi exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
Services
Generally, sales of services are not taxable unless they are specifically listed as taxable services. Common taxable services in Mississippi include:
- Repairs to tangible personal property
- Rental or lease of tangible personal property (e.g., vehicles, equipment)
- Admissions to amusements, sports, or recreation
Goods
- Most sales of tangible personal property are taxable unless they are specifically exempt. This includes: furniture, appliances, building materials, etc.
Freight/Shipping
- Shipping and freight charges are generally not taxable unless they are separately stated as a taxable service on the invoice.
Clothing
- Clothing in Mississippi is taxable unless it is being used in the production of motion pictures – then it is exempt
Electronics
- Electronics are taxable in Mississippi
SaaS
- SaaS is not taxable in Mississippi.
Digital Products
- Specified digital products, including digital photographs, are generally subject to Mississippi sales and use tax.
- Digital codes that enable the purchaser to access a digital product are taxed in the same way as the digital product itself.
Software
- Pre-written software is generally considered tangible personal property and therefore taxable.
- Custom software development services may be exempt.
How to register for sales tax in Mississippi
You can register for a sales tax permit in Mississippi online through the Mississippi Department of Revenue’s Taxpayer Access Point (TAP) website: https://tap.dor.ms.gov/_/
Here’s a breakdown of the process:
- Register as a New Taxpayer: On the TAP website, choose the link titled “Register for taxes“. Then, select the “New Taxpayer” button at the bottom of the page. Follow the prompts to create an account with the state.
- Sales Tax Permit Application: Once registered, navigate to the section for applying for a sales tax permit. You’ll need to provide information about your business, including:
- Business name, address, and contact information
- Federal Employer Identification Number (EIN)
- Date business activities began or will begin
- Projected monthly sales and taxable sales
- Products or services you sell
Submit the Application: Once you’ve completed the application, submit it electronically through the TAP system.
How to collect sales tax in Mississippi
- Charge the Correct Tax:
- Once you know the combined tax rate for your location, add that percentage to the sales price of your taxable goods and services.
- Most Point-of-Sale (POS) systems can be programmed to automatically calculate and add the sales tax.
- Collect the Tax:
- Clearly display the sales tax amount separately on your receipts or invoices.
- You collect the sales tax from your customer at the time of sale.
- Record Keeping:
- Maintain accurate records of your sales and the sales tax you collect. This is crucial for filing your sales tax return.
- File and Pay Sales Tax:
- The Mississippi Department of Revenue will determine your filing frequency (monthly, quarterly, or annually) based on your sales volume.
How to get a sales tax permit/license in Mississippi?
Once registered, you need to apply for a sales tax permit with the Mississippi Department of Revenue. This can be done online through the Mississippi Taxpayer Access Point (TAP).
During the application process, you’ll provide details such as your business name, address, Federal Employer Identification Number (FEIN) or Social Security Number (SSN), and the nature of your business. After processing your application, you will receive your Mississippi sales tax permit.
When are Mississippi’s sales tax returns due?
Mississippi sales tax returns are due by the 20th of the month following the reporting period. This applies to all filing frequencies, whether monthly, quarterly, or annually.
Is anyone exempt from sales tax in Mississippi?
Exempt Entities:
- Federal Government: Purchases made by the federal government are exempt from Mississippi sales tax.
- State and Local Governments: Purchases by the state of Mississippi and local governments within the state are generally exempt.
- Certain Non-Profit Organizations: Qualifying non-profit organizations may be exempt from sales tax on purchases used exclusively for exempt purposes. This typically requires a valid exemption certificate from the organization.
- Public Schools & Private Non-Profit Schools: Public schools and some private non-profit schools are exempt from sales tax on qualified purchases.
Exempt Purchases:
- Most Groceries: Mississippi exempts most non-prepared food items from sales tax. There are some exceptions, such as prepared foods, candy, and soft drinks.
- Prescription Drugs and Medical Equipment: Prescription drugs and certain medical equipment are exempt from sales tax.
- Certain Services: Mississippi exempts some services from sales tax, such as educational services, SaaS, religious services, and certain professional services.
