Mississippi Sales Tax Guide (2026)

Mississippi levies a 7% state sales and use tax. Unlike most states, only a handful of cities (such as Jackson and Tupelo) add a small local tax, so the combined rate is 7% almost everywhere and tops out around 8%.

Most of Mississippi is a flat 7%. To find the combined rate for a specific address, use our US sales tax calculator.

Mississippi economic nexus applies once your sales into the state exceed $250,000 in the prior 12 months, a higher threshold than most states. There is no transaction-count trigger. Physical presence creates nexus immediately.

Mississippi has required marketplace facilitators to register, collect, and remit use tax on facilitated Mississippi sales since July 1, 2020, under Department of Revenue Notice 72-20-04. A facilitator must register for a Mississippi use-tax account and begin collecting once its facilitated Mississippi sales exceed $250,000 in any consecutive twelve-month period, covering tangible personal property, taxable services, and specified digital products such as electronic books and audio works. Marketplace sellers selling only through a facilitator that collects the tax are not separately required to collect on those facilitated sales.[9]

Mississippi assigns monthly, quarterly, or annual filing based on tax volume, with most businesses on a monthly schedule. Returns are due the 20th of the month following the reporting period.

Mississippi taxes groceries, but the grocery rate was reduced from 7% to 5% effective July 1, 2025. Prescription drugs are exempt. SaaS taxability depends on hosting location — it is taxable if hosted on servers in Mississippi but exempt if hosted out of state and accessed remotely.

Mississippi does not issue a traditional resale certificate; instead, a seller documents an exempt wholesale or resale sale by keeping the buyer's Mississippi sales tax permit number on file [2]. Inventory bought for resale is purchased tax-free, and use tax is owed on any resale stock later withdrawn for business use [2].

Late filing or payment carries a penalty of 10% of the tax due, plus interest from the due date until the balance is paid.

You appeal an assessment first to the DOR Board of Review within 60 days of the notice [5]. The Board's order can then be appealed to the Mississippi Board of Tax Appeals within 60 days [5].

• [1] Mississippi DOR — Sales Tax Rates (7% state, groceries 5%, software)

• [2] Mississippi DOR — Business Tax FAQ (economic nexus, resale, digital)

• [3] Mississippi DOR — Computer Software Notice (SB 2449, in-state hosted taxable)

• [4] Mississippi DOR — Reduced Grocery Rate (5% from July 1, 2025)

• [5] Mississippi DOR — Appeal Process and Hearings (Board of Review, 60 days)

• [6] Mississippi DOR — Back-to-School Sales Tax Holiday 2026

• [7] Mississippi DOR — Second Amendment Sales Tax Holiday

• [8] Mississippi DOR — Taxpayer Access Point (registration)

• [9] Mississippi Department of Revenue — Notice 72-20-04: Marketplace Facilitators

Verified July 2026 against Mississippi Department of Revenue published guidance.

• What Is Exempt from Sales Tax in Mississippi: A Guide for Businesses
• What Is the Sales Tax on Clothing in Mississippi?