Mississippi state seal

MississippiSales Tax

A Complete Guide For Businesses

State Rate
7%

Local Tax
yes

State Portal
Department of Revenue

Phone
(601) 923-7700

General requirements

Mississippi is an origin-based state (sales are taxed where the seller is located).

  • Sales tax is charged on the sale of all tangible personal property (TPP) and certain services unless the law exempts the item or provides a reduced rate for the item
  • Sales Tax is based on gross proceeds of sales or gross income, depending on the type of business

Taxpayers are requested to file returns​ electronically.

Rates

The general state sales tax rate is 7%.

The state has 2 local taxes:

  • The City of Tupelo charges an additional .25% on all retail sales and services
  • The City of Jackson charges an additional 1% on certain retail sales and services

Tourism and Economic Development Taxes are common in many cities and counties typically imposed on hotels, motels, restaurants, and bars.

How food is taxed

Grocery items, as well as prepared food, are taxed at the full rate in Mississippi.

Nexus in Mississippi

Business activities that establish a minimum tax connection to the state include:

  • Ownership of business property located in Mississippi
  • Representation in the state by employees or agents of the business who service customers in Mississippi or solicit or accept orders for merchandise

Filing schedule

Generally, all retailers with an average tax liability of $300 or more per month must file monthly returns. The Department will notify you of any change in your filing frequency.

Returns are due on or before the 20th day following the end of the reporting period.

A timely filing discount of 2% up to $50 is available.

Registering to collect sales tax in Mississippi

Before making sales and collecting tax in Mississippi, the Department of Revenue requires that you have a permit or registration license.

A separate permit is required for each location. The permit does not expire and does not require renewal as long as you continue in the same business at the same location.

Penalties

If the return is late, a penalty of 10% of the tax due will be charged. Additionally, an interest of 1% per month of tax due is charged.