Mississippi Sales Tax Guide 2025: Standards, Rules, Taxes

Get a clear understanding of Mississippi's sales tax structure with this guide, covering rates, exemptions, and filing deadlines. Ensure your business operates smoothly and remains compliant.

Mississippi Sales Tax

Sales tax in Mississippi was introduced in 1930, making it one of the first states to adopt this tax system. Governed by Mississippi sales tax law, it applies to most goods and services, while Mississippi sales and use tax rules ensure compliance for in-state and out-of-state transactions.

Mississippi Sales Tax Rate

Jurisdiction	Sales tax rate
State tax	7.0%
Local tax	1.0%
Combined Tax	7.0% - 8.0%

Learn more and check out the city-based tax rates in Mississippi.

Mississippi Sales Tax Calculator

A Mississippi sales tax calculator helps retailers accurately determine the sales tax due on taxable items by applying the correct tax rate to the purchase price. The state’s base sales tax rate is 7%, but certain areas may impose additional special taxes.

Example: A retailer in Mississippi sells a taxable item, such as a backpack, for $80. To calculate the sales tax:

1. Determine the Tax Rate Use the state’s base rate of 7%.
2. Multiply the Price by the Sales Tax Rate $80 × 0.07 = $5.60 (sales tax).
3. Add the Sales Tax to the Item Price $80 (item price) + $5.60 (sales tax) = $85.60.

The total price, including sales tax, is $85.60.

Using a calculator simplifies this process, ensuring retailers collect the correct amount and remain compliant with Mississippi laws. Automation tools like Kintsugi can further streamline these calculations for efficient tax management.

FAQs on Sales Tax

What is the sales tax rate in Mississippi?

The base sales tax rate in Mississippi is 7%, with additional special taxes in certain areas.

How to calculate sales tax in Mississippi?

To calculate sales tax in Mississippi, multiply the item's price by the applicable tax rate. Check the sales tax calculator above.

How to calculate penalty and interest on Mississippi sales tax?

Late filing incurs a penalty of 10% of the unpaid tax, and interest accrues daily based on the current state interest rate.

Sales Tax Nexus in Mississippi​

Type of Nexus	Threshold
Physical presence	Any physical presence
Economic nexus	$250,000 in sales
Marketplace nexus	$250,000 in sales

FAQs on Sales Tax Nexus

What is the sales tax nexus in Mississippi?

Sales tax nexus in Mississippi is established when a business has a physical presence, such as a store or warehouse, or meets economic nexus criteria.

What is the nexus threshold for sales tax in Mississippi?

The nexus threshold for sales tax in Mississippi is $250,000 in annual gross sales to customers in the state.

What is the economic nexus in Mississippi sales tax?

Economic nexus in Mississippi requires remote sellers exceeding $250,000 in annual sales to the state to register, collect, and remit sales tax.

Mississippi Sales Tax Exemptions​

Mississippi offers sales tax exemptions to support businesses, organizations, and specific industries, helping reduce costs and promote economic activity. Common exemptions include items purchased for resale, manufacturing equipment, agricultural supplies, and certain nonprofit or government purchases.

Some energy-related exemptions, such as natural gas used in production, also apply to qualifying businesses. Understanding these exemptions ensures businesses can optimize their operations while remaining compliant with Mississippi’s tax laws.

FAQs on Sales Tax Exemptions

How to obtain a sales tax exemption certificate in Mississippi?

To obtain a sales tax exemption certificate in Mississippi, businesses must complete and submit the appropriate application, such as the resale certificate, to the Mississippi Department of Revenue and provide it to vendors for tax-exempt purchases.

What is exempt from sales tax in Mississippi?

Items like goods for resale, agricultural supplies, certain manufacturing equipment, and prescription drugs are exempt from sales tax in Mississippi. Learn more about Mississippi sales tax exemptions.

Is SaaS taxable in Mississippi?

Yes, SaaS (Software as a Service) is taxable in Mississippi as it is considered a taxable service.

What is the sales tax on clothing in Mississippi?

The sales tax on clothing in Mississippi is the state base rate of 7%, with no special exemptions for clothing. Learn more about Mississippi clothing sales tax.

What makes you exempt from Mississippi state taxes?

Eligibility for exemption is based on the purpose of the purchase, such as resale, manufacturing, or agricultural use, and requires proper documentation like an exemption certificate.

What is exempt vs. non-exempt in Mississippi?

Exempt items include goods for resale, agricultural supplies, and machinery used in production, while non-exempt items are everyday consumer goods, services, and most tangible personal property, including clothing.

Who is exempt from Mississippi sales tax?

Entities like nonprofits, government agencies, and businesses purchasing goods for resale or specific production processes are exempt from Mississippi sales tax.

What items are exempt from Mississippi sales tax?

Exempt items include prescription drugs, agricultural equipment, raw materials for manufacturing, and goods purchased for resale.

Mississippi Sales Tax Filing

Filing sales tax in Mississippi involves reporting the tax collected on taxable transactions and remitting it to the Mississippi Department of Revenue. Businesses must first obtain a valid sales tax permit, track all taxable and non-taxable sales, and ensure accurate reporting of collected taxes.

Filing is typically done through the Mississippi Taxpayer Access Point (TAP) portal, with filing frequencies—monthly, quarterly, or annually—assigned based on the volume of sales. Proper documentation and timely submission are essential to avoid penalties and ensure compliance with Mississippi’s tax laws.

What are the Mississippi sales tax filing requirements?

Businesses must obtain a valid sales tax permit, collect sales tax on taxable sales, and report and remit taxes to the Mississippi Department of Revenue through the Taxpayer Access Point (TAP) based on their assigned filing frequency.

How do I file sales tax in Mississippi?

To file sales tax in Mississippi, log into the TAP portal, report taxable and exempt sales, calculate the total tax due, and submit your return along with payment by the required deadline.

Mississippi Sales Tax Due Date​

Filing Frequency	Due Date
Monthly	Every 20th day of the following month (Ex. Due date for January is February 20)
Quarterly	Every 20th of the month following the quarter’s end. (Ex. Due date for Q1 (January 1 – March 31) is April 20)
Annually	January 20 of the following year

What is the deadline to pay MS state taxes?

The deadline to pay Mississippi state sales tax is the 20th of the month following the reporting period.

What is the penalty for filing sales tax late in Mississippi?

The penalty for late filing in Mississippi is 10% of the unpaid tax, plus interest that accrues daily until the balance is paid.

Mississippi Sales Tax Revenue Service

For any concerns about Mississippi sales tax registration, filing or general inquiries, you can reach out to them through the following:

• Phone: (601) 923-7015
• Fax: (601) 923-7034
• Website: dor.ms.gov

That’s everything you need to know about Mississippi sales tax! Simplify compliance and reduce the stress with Kintsugi. You can sign up or book a demo today to streamline the whole process.