Mississippi Sales Tax Rates

Total Range for 2024

7%–8%

Missippi department of revenue logo

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:

  1. 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.
  2. 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.

Is what you’re selling taxable in Mississippi?

Now that you understand the basics of Mississippi sales tax, let’s determine if your specific products or services are subject to it.

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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:

  1. 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.
  2. 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

  1. 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.
  1. 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.
  1. Record Keeping:
  • Maintain accurate records of your sales and the sales tax you collect. This is crucial for filing your sales tax return.
  1. File and Pay Sales Tax:
  • The Mississippi Department of Revenue will determine your filing frequency (monthly, quarterly, or annually) based on your sales volume.
Example:

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:

  1. Item Price: A customer buys a shirt for $25.00.
  2. 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%.
  3. Sales Tax Calculation:
    • Multiply the sales price by the sales tax rate: $25.00 x 8% = $2.00
  4. Total Price with Tax:
    • Add the sales tax amount to the original price: $25.00 + $2.00 = $27.00

FAQs

Do you have a physical nexus in Mississippi?

A business has physical nexus in Mississippi if it has a physical presence that connects it to the state in a substantial way for tax purposes. Here are some factors that establish physical nexus in Mississippi:

  • Owning a physical location: This includes having a store, office, warehouse, or any other place of business in the state.
  • Employees or representatives: Having employees or salespeople who regularly solicit sales or service customers within Mississippi creates nexus.
  • Inventory storage: Storing inventory in a warehouse or fulfillment center located in Mississippi establishes nexus. This applies even if you use a service like Fulfillment by Amazon (FBA) and their warehouses store your products in Mississippi.
  • Regular presence at events: Having employees attend trade shows or conferences in Mississippi for more than a short duration (specific timeframe may vary) could be considered nexus.
Do you have an economic nexus in Mississippi?

In addition to physical presence, Mississippi also recognizes economic nexus. This means a seller can be obligated to collect sales tax even without a physical presence in the state, if they meet a certain sales threshold within a specific period. 

Currently, Mississippi requires out-of-state sellers to collect and remit sales tax if they have more than $250,000 in sales to Mississippi customers within the previous 12-month period.

What is use tax in Mississippi?
  • Applies to tangible personal property purchased out-of-state but used in Mississippi, on which no sales tax was paid at purchase.
  • Rate is the same as the state’s sales tax rate (currently 7%).
  • Consumers are responsible for calculating and paying use tax on their Mississippi Department of Revenue tax return.
Do you need a seller/reseller permit?

In Mississippi, the concept of a seller’s permit and a resale certificate is kind of combined into one. Here’s the breakdown:

  • Mississippi Sales Tax Permit: This acts as both a seller’s permit and a resale certificate.
  • What it means: If you have a business in Mississippi that sells taxable goods or services, you need a Mississippi Sales Tax Permit.
How to get a sales tax permit/license in Mississippi?

You can obtain a sales tax permit/license, which is combined into one document in Mississippi, by registering online through the Mississippi Department of Revenue’s Taxpayer Access Point (TAP) website.

Here’s a step-by-step guide:

  1. Register as a New Taxpayer:
    • Go to the TAP website and choose “Register for taxes“.
    • Select “New Taxpayer” and follow the prompts to create an account.
  2. Sales Tax Permit Application:
    • Once registered, navigate to the section for applying for a sales tax permit.
    • Gather and fill out the necessary information
  3. Submit the Application:
    • Once you’ve completed the application, submit it electronically through the TAP system.
When are Mississippi's 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.

How to file sales tax in Mississippi

Filing Process (Mississippi uses an online system):

  1. Access the TAP System: Go to the Mississippi Department of Revenue’s Taxpayer Access Point (TAP) website: https://tap.dor.ms.gov/_/
  2. Login: Use your TAP username and password to log in to the system.
  3. Select Sales Tax Return: Navigate to the section for filing sales tax returns. Choose the appropriate return for the filing period you need to submit.
  4. Enter Sales Information: Carefully enter your sales and sales tax data into the online form. The TAP system may prompt you for details like:
    • Gross sales
    • Taxable sales
    • Non-taxable sales (if applicable)
    • Amount of sales tax collected
  5. Review and Submit: Thoroughly review the entered information for accuracy before submitting your return electronically.
  6. Payment: You can also submit your sales tax payment electronically through the TAP system. Mississippi accepts various payment methods, including debit/credit cards and ACH transfers.
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, religious services, and certain professional services.

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