Mississippi Sales Tax: 7% State Rate, Reduced Rates, Filing Frequency and Due Dates
Mississippi Sales Tax: 7% State Rate, Reduced Rates, Filing Frequency and Due Dates
If your business sells taxable goods or services in Mississippi, you collect sales tax from customers and remit it to the Mississippi Department of Revenue (DOR). The state rate is 7%, but some categories are taxed at lower or higher rates, your filing schedule depends on how much tax you remit each year, and a return is due every period even when you owe nothing. This guide covers the rates, nexus, filing frequency and due dates in one place, and flags the points you should confirm directly with the DOR.
This guide is informational content, not legal or tax advice. Your obligations depend on your specific facts, and rules change. Consult a qualified CPA or tax attorney before you act on anything here.
Mississippi Sales Tax Rate: The Categories That Matter
The base mississippi sales tax rate is 7% on retail sales. Several categories are taxed differently, so check each product or service against this table before you set prices or build invoices:
| Category | Rate |
|---|---|
| General retail sales | 7% |
| Food and drink that SNAP can buy (groceries) | 5% |
| Automobiles and light trucks of 10,000 lbs or less | 5% |
| Manufacturing machinery, farm tractors, logging equipment and farm implements | 1.5% |
| Non-residential construction contracts over $10,000 | 3.5% |
| Hotels, repairs and parking (miscellaneous specified businesses) | 7% |
Mississippi has no county sales tax. Only two cities add a local levy: Jackson (1%) and Tupelo (0.25%). Outside those two cities, the state rate is the full rate you charge. Tupelo's levy applies to groceries as of May 1, 2026, so a grocery sale in Tupelo carries the city levy on top of the 5% state rate. Whether Jackson's 1% levy applies to groceries is a question to confirm with the City of Jackson or the DOR.
Mississippi Sales Tax on Food
The 5% rate covers food and drink that SNAP can buy, which is the grocery category. That is a narrower definition than all food, so do not assume every food item qualifies. Prepared meals and other items outside the SNAP definition are not covered by the 5% rate, and this guide does not state their rate. Confirm how prepared food and drink is taxed with the DOR before you price a restaurant, catering or prepared-meal product.
Mississippi Sales Tax on Services
Sales tax on services applies only to the specific categories the DOR lists. The categories confirmed so far are hotels, repairs and parking, which are taxed at 7% as miscellaneous specified businesses. Do not assume a service is taxable or exempt because it resembles one on that list. Confirm the specific service with the DOR before you add tax to an invoice or leave it off.
Mississippi Sales Tax Nexus and Economic Nexus
You can have a sales tax obligation in Mississippi through two routes.
Registration for retail sales. A business making retail sales in Mississippi must register with the DOR for a sales tax permit. The DOR describes the permit as a permit for the privilege of operating a business in Mississippi, and there is no fee for it. Applicants with no permanent Mississippi location may be required to post a bond.
Economic nexus for remote sellers. Remote sellers have economic nexus once their sales into Mississippi exceed $250,000 in the prior 12 months. This is DOR guidance, and the DOR has enforced it since September 2018. Once you cross the line, plan to register and collect. Ask the DOR how sales are counted toward the threshold and how quickly you must register after crossing it, because this guide does not settle those details.
A sales tax permit is a tax registration, not a business license. Mississippi issues no single statewide business license. Cities and towns issue their own privilege licenses under Miss. Code 27-17, and counties license only businesses outside municipalities. Forming an LLC with the Secretary of State is also a registration, not a license. Plan for both the DOR permit and any local license.
How to Register for a Mississippi Sales Tax Permit
- Start at the DOR's registration page for sales and use tax applicants: https://www.dor.ms.gov/business/sales-use-tax/registration-information-sales-and-use-tax-applicants. The main DOR site is https://www.dor.ms.gov/.
- Have your legal business name, entity type and planned start date ready. Confirm the full list of information the DOR asks for on its registration page.
- After registration, check the filing frequency the DOR assigns in TAP, its online portal.
- If you have no permanent Mississippi location, confirm whether a bond is required before you make your first sale.
Mississippi Sales Tax Filing Frequency
The DOR assigns your filing frequency in TAP based on the annual sales tax you remit. You do not choose it yourself. Confirm the assignment in TAP after registration, and ask the DOR how a change in your tax volume affects it.
| Annual sales tax remitted | Filing frequency |
|---|---|
| Under $600 | Annual |
| $600 to $3,599 | Quarterly |
| More than $3,599 | Monthly |
Every period requires a return, even when you collected no tax. A slow month still needs a filed zero return, so calendar each due date whether or not you had sales.
Mississippi Sales Tax Due Dates
Returns are due on the 20th of the month after the end of the reporting period. If the 20th falls on a weekend or holiday, the return is due the next business day. These examples show how the rule applies:
| Filing frequency | Period covered | Due date |
|---|---|---|
| Monthly | January sales | February 20 |
| Monthly | March sales | April 20 |
| Quarterly | January through March | April 20 |
| Quarterly | October through December | January 20 |
Annual filers should confirm the exact period and due date in TAP. Penalties and interest for late filing are not covered in this guide, so confirm them with the DOR. Scheduling the filing a few days early costs nothing and avoids the question.
Mississippi Sales Tax Holiday
This guide does not list a Mississippi sales tax holiday, and none is confirmed. Do not plan promotions, tax-free sales events or price tags around a holiday until you confirm its current status with the DOR. If one is announced, confirm its dates, covered items and any filing steps before you advertise it.
Common Sales Tax Mistakes in Mississippi
- Charging 7% on groceries. Food and drink that SNAP can buy is taxed at 5%, and Tupelo's city levy also applies to groceries.
- Assuming a county surcharge. Mississippi has no county sales tax. Only Jackson and Tupelo add city levies.
- Taxing or skipping a service by analogy. Confirm each service with the DOR rather than comparing it to a listed category.
- Skipping zero returns. A return is required every period, including periods with no tax due.
- Ignoring out-of-state sales growth. Remote sellers who pass $250,000 in Mississippi sales over the prior 12 months have economic nexus.
Practical Steps to Stay Compliant
- Register with the DOR before your first taxable sale.
- Map each product and service to its rate category, including any city levy.
- Track sales by category and by location so your returns are accurate.
- Calendar every due date, including periods with no tax.
- If you sell from outside Mississippi, review your sales into the state over the prior 12 months against the $250,000 economic nexus threshold regularly.
When to Bring in a Professional
Consult a qualified CPA if you have multi-state or marketplace sales, construction contracts that mix taxable and exempt work, purchases of manufacturing or farm equipment, or a prior DOR notice or audit. A tax attorney can help if the DOR disputes your rate or nexus position. For a Mississippi-specific sales tax question, start at https://www.dor.ms.gov/ and get the answer confirmed in writing.