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We’ll tell you everything you need to know to stay compliant, avoid fines, and navigate business regulations. Find out how to register for and collect sales tax on food items, ecommerce goods, software programs, ebooks, and other products or services.
Key takeaways
- Mississippi charges a 7% sales tax. Two cities, Jackson and Tupelo, impose a local sales tax of 1% and 0.25%, respectively.
- The sales tax on food products eligible for purchase with food stamps is 5%.
- Remote vendors must collect and remit sales tax if their annual sales to Mississippi customers exceed $250,000.
- Businesses with physical or economic nexus in Mississippi must register for a seller’s permit. Registration is free and can be completed online.
The Mississippi sales tax rate in 2025 is 7% to 8%. This comprises a base rate of 7% plus a maximum local rate of 1%.
Only two cities in the state charge a local sales tax: Jackson (1%) and Tupelo (0.25%).
Sales Tax 101: Sales tax is a state-imposed charge on the sale of tangible personal property and certain services. The revenue from sales tax goes toward public infrastructure, healthcare, transportation, and other projects.
This tax is added to the sales price and then remitted to the appropriate government agency, such as the Mississippi Department of Revenue. Its value varies by state, which can make compliance challenging for businesses selling across the U.S. Additionally, sales tax exemptions, filing procedures, and other aspects differ from state to state.
If you sell taxable products or services, Numeral can help you manage compliance across multiple jurisdictions. Our platform integrates seamlessly with your billing system, automating complex processes like sales tax filing and remittance.
Recent tax rate changes
Starting on July 1, 2025, fruits, vegetables, meat, and other grocery items eligible for purchase with food stamps are taxed at a reduced rate of 5%. Any products purchased with food stamps remain exempt from sales tax. These regulations don’t apply to prepared foods, which are still taxed at the full 7% rate.
Do I need to collect Mississippi sales tax?
If your retail business has a physical presence in Mississippi, you must collect sales tax. Even without physical ties, you must register for, collect, and remit Mississippi sales tax if you have economic nexus. This is often the case for remote sellers and marketplace facilitators.
Wholesalers need a seller's permit only if they intend to claim sales tax exemptions on wholesale purchases (e.g., raw materials from suppliers). Businesses selling both wholesale and retail are required to charge sales tax, too.
Nexus: What it means and how it affects your business
Physical nexus
Physical nexus means having a tangible presence in a state where you sell products or services. This could be an office, brick-and-mortar store, inventory, employees, or sales reps.
Attending trade shows or seasonal events can create a physical nexus, too. For example, if you rent a booth at a local fair in Mississippi, you'll likely need to collect and remit sales tax.
Economic nexus
In Mississippi, economic nexus occurs when a vendor exceeds $250,000 in gross annual revenue from sales within the state. This creates a tax obligation—even if the business has no physical presence there.
For example, an ecommerce brand based in Ohio must collect Mississippi sales tax if its annual sales to customers in Mississippi exceed the $250,000 threshold.
Out-of-state (remote) sellers
There are cases where out-of-state sellers can unintentionally create nexus. Here are some common scenarios:
- Using third-party fulfillment centers located in Mississippi (e.g., Amazon FBA)
- Hiring remote employees or contractors based in Mississippi
- Partnering with affiliates or resellers in the state
- Offering installation, training, or maintenance services to Mississippi customers
- Delivering products with company-owned vehicles to buyers in Mississippi
In any of these situations, businesses must apply for a seller’s permit and collect sales tax to remain compliant.
Is Mississippi’s sales tax destination-based or origin-based?
Mississippi is an origin-based state, meaning sellers charge tax based on their location, not the customer’s location.
What’s the difference between destination-based and origin-based sales tax states?
In origin-based states, sales tax is calculated based on where the seller ships from. If, say, you run a store in Jackson, Mississippi, and ship an order to a customer in Gulfport, you’ll charge the sales tax rate for Jackson because that's where the sale originated.
In destination-based states like Colorado, Maine, or Nevada, vendors charge sales tax based on the customer's shipping address.
What's taxable?
Mississippi charges sales tax on all sales of tangible personal property, such as clothing, electronics, and cars. Certain services are taxable, too.
Which ecommerce goods are taxable?
Most ecommerce products fall under the definition of tangible personal property and, therefore, are subject to sales tax. Let’s see a few examples:
- Apparel and footwear
- Pet supplies
- Kitchen appliances
- Furniture and home decor items
- Personal care products
- Toys and video games
- Computer hardware
- Smartphone accessories
- Housecleaning products
Is software-as-a-service (SaaS) taxable in Mississippi?
SaaS is subject to sales tax only if it's hosted on a server located in Mississippi and accessed by customers in the state, as outlined in Senate Bill 2449. The sale is not taxable if the software is hosted outside the state (e.g., in the cloud) and accessed remotely.
For more information, see our guide to SaaS taxation in Mississippi.
Sales tax exemptions
Some products and services are not subject to sales tax in Mississippi. Major categories of exemptions include:
- Food and groceries purchased with food stamps
- Girl Scout cookies
- Prescription drugs and medicines
- Medical equipment listed under Medicare/Medicaid plans or prescribed by a licensed physician
- Sales to nonprofit hospitals
- Agricultural items, such as livestock and seeds
- Chemicals used in agricultural production
- Industrial machinery
- Manufacturing components (e.g., chemicals, gases, welding materials)
- School textbooks and supplies
- Sales to the government and nonprofit entities
Good to know: Clothing and footwear are generally taxable unless sold during the four-day sales tax holiday for clothing under $100.
Excise taxes in Mississippi
In addition to general sales tax, Mississippi imposes excise taxes on goods like tobacco, alcohol, and fuel.
Tobacco Excise Tax
Alcoholic Beverages Tax
Motor Fuel Excise Tax
Good to know: Mississippi is one of the few states that didn’t legalize recreational marijuana and, consequently, cannot charge tax on it. However, medical cannabis is legal and subject to both sales and taxes.
Medical cannabis cultivators must pay a 5% excise tax on their first sale or transfer to related businesses. Dispensaries charge patients the usual 7% sales tax plus local sales taxes in Jackson and Tupelo.
How to register for a Mississippi sales tax permit
Out-of-state vendors who exceed the economic nexus threshold in Mississippi must register for a seller’s permit and collect sales tax. The same applies to those who have inventory stored in Mississippi warehouses or fulfillment centers or attend conventions or trade shows in the state.
Simply follow these steps:
- Access the Mississippi TAP system.
- Click “Register a New Taxpayer” under “Add New Account or Access.”
- Submit the following information:
- Your business name, address, and ownership type
- Social Security Number or Federal Employer Identification Number (FEIN)
- Description of business activities
- Types of products sold
- Begin collecting 7% sales tax on orders from Mississippi buyers;
- Remit the collected sales tax on your Mississippi sales tax returns.
TIP: Sales tax registration doesn’t have to be complicated or time-consuming. Numeral streamlines this process, allowing you to automatically register in the states where you must collect tax. All you need to do is answer a few questions about your business, connect Numeral to your billing system, and turn on Autoregister.
Cost of registration for a Mississippi sales tax license
There is no fee to register for a Mississippi seller's permit. However, other business registration costs may apply.
I didn't collect any Mississippi sales tax. Do I still have to submit a return?
Yes, every business with a valid seller's permit must file a “zero return” each period, even when no tax was collected.
Return filing schedule and due dates
Sales tax returns and payments in Mississippi must be submitted electronically through the TAP system by the due date. Paper filing is still an option for vendors who cannot file electronically.
Return due dates
Filing frequency in Mississippi is assigned as monthly, quarterly, or annually based on your sales volume. Returns and payments are due on the 20th of the month following the reporting period, whether you file monthly, quarterly, or annually.
Monthly:
Quarterly:
Annual:
Penalties
The penalty for late filing in Mississippi is 10% of the unpaid tax due. If the tax still isn’t paid within 60 days after it's due or if the state steps in with a collection warrant, you could face an extra 10% penalty on top of what you already owe.
Also, note that interest accrues at 1% per month on any unpaid amount for that month.
Audit & appeals process
The Mississippi Department of Revenue may audit your business to ensure you have properly collected and paid sales tax. An audit may also be triggered by filing errors or inconsistencies, missing reports, unclear information, and other issues.
Here’s what to expect during this process:
- Receive an audit notice and gather the required financial records, such as bank statements, sales reports, and tax returns.
- The auditor reviews your records and tax returns; they may look at specific transactions, compare revenue totals, and check for underreported or untaxed sales.
- Get the audit results, including a tax assessment. If you owe additional tax, you may need to pay interest and penalties.
- Business owners who disagree with the auditor’s findings can file a petition to appeal within 60 days.
- Attend an appeals hearing to present evidence and contest the audit results. Be prepared to explain any discrepancies and submit corrected documentation.
- Wait to receive a final order from the hearings officer;
- If you’re still not satisfied with the outcome, you may file an appeal with the Mississippi Supreme Court. At this point, it’s recommended to seek legal assistance.
Sales tax FAQs
How do you calculate Mississippi sales tax?
To calculate Mississippi sales tax, multiply the purchase price by the combined state (7%) and local tax rate.
For example, if a product costs $100 and the local rate in Jackson is 1%, you would collect $8 in sales tax ($7 for the state and $1 for the city), as shown below:
$100 x 8% = $8 sales tax
Is Mississippi a streamlined sales tax state?
As of July 2025, Mississippi is not a Streamlined Sales and Use Tax Agreement (SSUTA) member.
Are digital products taxable in Mississippi?
Yes, digital products like movies, music, and ebooks are taxable when accessed by or delivered to consumers in Mississippi. This requirement applies to all digital products, whether downloaded or streamed, except those sold for resale.
For instance, if a customer purchases an ebook from your website, you must charge sales tax. The same applies when someone pays for streaming a movie or downloading an audio file.
Are services taxable in Mississippi?
Yes, Mississippi requires sellers to collect sales tax on various services, such as plumbing, HVAC installation, dry cleaning, and electrical work. Other taxable services include:
- Repairs to tangible personal property
- Pest control
- Dry cleaning
- Personal property rentals or leases
- Furniture upholstering
Good to know: Short-term rentals, such as hotel accommodations, are taxable in Mississippi. For example, if you rent apartments, villas, or other property on Airbnb, you must get a seller’s permit and collect sales tax.
Should you collect sales tax on shipping charges in Mississippi?
If the items sold are subject to Mississippi sales tax, the shipping and handling charges are generally taxable. The sales tax would apply to the total product cost plus the shipping fees.
You are not required to collect sales tax on delivery charges when shipping to another state, regardless of how the shipment is made (e.g., using your own vehicle or a common carrier like USPS).
Do I need a Mississippi seller's permit if I only sell temporarily in the state?
You likely need a seller's permit if you are based outside of Mississippi and attend a trade show or temporary event.
Can I get an extension on filing my Mississippi sales tax return?
Mississippi doesn’t routinely grant extensions for filing sales tax returns. The Commissioner may approve such a request in exceptional cases, but tax payments are still due on the original deadline.
Can I amend a Mississippi sales tax return?
Yes, you can amend a sales tax return directly from your TAP account. Access your dashboard, go to "File or Amend a Return," and follow the instructions provided.
Information & contacts
For questions on Mississippi sales tax rules and procedures, contact:
- Authority Name: Mississippi Department of Revenue
- Phone number: 601-923-7015
- Website: dor.ms.gov
There you have it, a complete guide on Mississippi's sales tax laws. Remember, we’re here to help. Numeral can take the stress out of sales tax registration, filings, exemption certificate management, and other operations.
Don't spend more time on tax than you need to.
