Mississippi is an origin-based state (sales are taxed where the seller is located).
Taxpayers are requested to file returns electronically.
The general state sales tax rate is 7%.
The state has 2 local taxes:
Tourism and Economic Development Taxes are common in many cities and counties typically imposed on hotels, motels, restaurants, and bars.
Grocery items, as well as prepared food, are taxed at the full rate in Mississippi.
Business activities that establish a minimum tax connection to the state include:
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.
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.
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.