# Mississippi Sales Tax Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/usa/mississippi
Published: September 22, 2026

Mississippi's 7% state rate comes with almost no local tax, and SaaS taxability turns on where it's hosted. Economic nexus begins at $250,000.

- **SaaS:** Partial
- **Clothing:** Taxable
- **Groceries:** Taxable
- **Digital Goods:** Taxable

- **Effective date::** 
- **Scheduled change::** 

## Key Takeaways

Mississippi's state sales tax rate is 7%, one of the highest state base rates, with only limited local add-ons [1]. You have economic nexus once sales into Mississippi exceed $250,000 in the prior 12 months, with no transaction-count trigger [2]. Since July 1, 2023, computer software and software services are taxable when hosted in-state but exempt when hosted out of state and accessed remotely; groceries are taxed at a reduced 5% rate as of July 1, 2025, and digital products are taxable [3][4][2]. Appeal an assessment to the Board of Review within 60 days [5].

## Taxability Snapshot

## Sales Tax Rates

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%.

| Component | Rate | Scope |
| --- | --- | --- |
| State | 7.00% | Statewide |
| Local (limited cities) | up to ~1% | Jackson, Tupelo, a few others |
| Combined | 7.00%–8.00% | Varies by location |

Most of Mississippi is a flat 7%. To find the combined rate for a specific address, use our [US sales tax calculator](/us-sales-tax-calculator).

## Registration or Nexus Threshold

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.

## Marketplace Facilitator Law

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]

## Filing Frequency & Deadlines

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.

#### Exemptions

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.

## Resale & Exemption Certificates

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].

## Penalties

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

## Audits & Appeals

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].

## Sources

- [1] [Mississippi DOR — Sales Tax Rates (7% state, groceries 5%, software)](https://www.dor.ms.gov/business/sales-use-tax/sales-tax-rates)

- [2] [Mississippi DOR — Business Tax FAQ (economic nexus, resale, digital)](https://www.dor.ms.gov/business/business-tax-frequently-asked-questions)

- [3] [Mississippi DOR — Computer Software Notice (SB 2449, in-state hosted taxable)](https://www.dor.ms.gov/sales-and-use-tax)

- [4] [Mississippi DOR — Reduced Grocery Rate (5% from July 1, 2025)](https://www.dor.ms.gov/news/reduced-sales-tax-groceries-begins-july-1)

- [5] [Mississippi DOR — Appeal Process and Hearings (Board of Review, 60 days)](https://www.dor.ms.gov/forms-resources/taxpayer-guidance/appeal-process-and-hearings)

- [6] [Mississippi DOR — Back-to-School Sales Tax Holiday 2026](https://www.dor.ms.gov/news/sales-tax-holiday-july-10-12)

- [7] [Mississippi DOR — Second Amendment Sales Tax Holiday](https://www.dor.ms.gov/node/6481)

- [8] [Mississippi DOR — Taxpayer Access Point (registration)](https://tap.dor.ms.gov/_/)

- [9] [Mississippi Department of Revenue — Notice 72-20-04: Marketplace Facilitators](https://www.dor.ms.gov/sites/default/files/notices-technical-bulletins/72-20-04%2520MARKETPLACE%2520FACILITATORS%2520%25281%2529.pdf)

Verified July 2026 against Mississippi Department of Revenue published guidance.

## Frequently Asked Questions

### What is the Mississippi sales tax rate in 2026?

7% statewide, with only a few cities adding a small local tax, so the combined rate tops out around 8%.

### What is Mississippi's economic nexus threshold?

$250,000 in sales into Mississippi over the prior 12 months — higher than most states. There is no transaction-count trigger.

### Is SaaS taxable in Mississippi?

It depends on hosting. SaaS is taxable if hosted on servers in Mississippi, but exempt if hosted out of state and accessed remotely.

### Are groceries taxed in Mississippi?

Yes, but the grocery rate was reduced from 7% to 5% effective July 1, 2025.

### When are Mississippi sales tax returns due?

The 20th of the month following the reporting period; most businesses file monthly.

### What is the penalty for late Mississippi sales tax?

10% of the tax due, plus interest from the due date.

## Related Reading

- [What Is Exempt from Sales Tax in Mississippi: A Guide for Businesses](/blog/what-is-exempt-from-sales-tax-in-mississippi)

- [What Is the Sales Tax on Clothing in Mississippi?](/blog/what-is-the-sales-tax-on-clothing-in-mississippi)

## US Sales Tax Calculator