Madison Sales Tax Guide 2025 (Mississippi)
Madison enforces sales tax and property tax regulations to support infrastructure and public services. Businesses must adhere to sales tax rates and stay informed on tax changes to maintain compliance within the city’s tax jurisdiction. Participation in the streamlined sales tax program and certain exemptions help manage costs, while local sales contribute essential revenue to the city’s economic growth. This guide provides essential insights into local tax rates, use tax, and Mississippi sales tax laws, helping you stay compliant and avoid penalties for smooth business operations.
Madison MS Sales Tax Rate (Mississippi)
The combined sales tax rate in Madison, MS, is 7%, consisting of the state sales tax and use tax with no additional county tax or city tax applied.
| Jurisdiction | Sales tax rate |
|---|---|
| State Tax | 7.0% |
| County Tax | 0.0% |
| City Tax | 0.0% |
| Special Tax | 0.0% |
| Combined Tax | 7.0% |
Madison Sales Tax Calculator
A Madison sales tax calculator helps businesses accurately calculate the tax due on sales by applying the 7.0% combined tax rate. This includes the 7.0% state tax with no additional county tax, city tax, or special tax. Retailers can use a sales tax calculator and tax rate lookup tools to ensure compliance with Mississippi's tax regulations and avoid errors in tax reporting.
Scenario: A retailer in Madison, MS, sells an item priced at $4,500. The total sales tax rate is 7.0%.
- State Tax (7.0%): $4,500 × 7.0% = $315.00
- County Tax (0.0%): No county tax applies.
- City Tax (0.0%): No city tax applies.
- Special Tax (0.0%): No special tax applies.
- Total Combined Tax: $315.00
Final Total Price: $4,500 + $315.00 = $4,815.00
Using a Madison sales tax calculator helps businesses manage their tax obligations and apply the correct sales tax on each transaction, ensuring full compliance with Mississippi's sales tax laws.
FAQs
What is the sales tax in Madison, MS?
The sales tax in Madison, MS, is 7%, which is the state rate. There are no additional county tax or city tax components.
What is the sales tax rate in Madison, MS?
The sales tax rate in Madison is 7%, composed solely of the Mississippi state sales tax and use tax. This rate applies to most goods and services sold within the city.
Who Needs to Collect Sales Tax in Madison?
Sales tax collection in Madison is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Madison.
2. Economic Nexus: Out-of-state businesses exceeding $250,000 in Mississippi.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Madison?
In Madison, Mississippi, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like Raw Materials, Medical Devices, Newspapers, General Occasional Sales, Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts, General Pollution Control Equipment, General Trade-Ins, Food Vending Machine. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Madison
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://www.dor.ms.gov/business/mississippi-sales-and-use-taxes.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://www.dor.ms.gov/business/mississippi-sales-and-use-taxes by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Madison often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
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With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
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Find Sales Tax Information for Other Cities in Mississippi
Looking for sales tax rates and compliance details for other cities in Mississippi? Check out our comprehensive table of sales tax information for cities across the state in the table below
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