Economic Nexus Laws by State: Mississippi

by Sarah Craig April 14, 2023

State laws on economic nexus vary and it can be challenging to keep up with the various requirements for multi-state sellers. To help, we’ve consolidated everything you need to know about economic nexus in Mississippi below.

What is economic nexus?

With the South Dakota v. Wayfair Supreme Court ruling in favor of South Dakota, states are free to pursue sales tax from e-commerce businesses who have a “significant presence” in their state. Significant presence or “nexus” was previously defined as having a physical presence (ex: brick and mortar store, employee, or inventory in a fulfillment center like FBA). But this definition expanded in 2018 to include economic activity in a state as well. This concept of triggering sales tax responsibility because of your economic activity in a state is referred to as economic nexus.

Most importantly, this means that if you pass a state’s economic threshold for total revenue and/or number of transactions in that state, you’re legally required to register, collect and remit sales tax for that state.

What’s the threshold for economic nexus law in Mississippi?

  • State: Mississippi
  • Threshold: As of December 1, 2017, remote e-commerce sellers who fit the following criteria are considered to have economic nexus in Mississippi:
    • Sales made into Mississippi that exceed $250,000 in the prior twelve months
  • Summary: According to state law, sellers who exceed the $250,000 threshold are required to register for a Mississippi sales tax permit, collect sales tax on sales that ship to Mississippi, and remit sales tax to the state.
  • Full text: You can read Mississippi’s economic nexus laws here. We recommend speaking with a vetted sales tax expert to answer specific questions for your business. 

I meet the economic threshold requirement in Mississippi. Now what?

The first step is to register for a sales tax permit in Mississippi. You can register online with the state, or visit our registration page to request TaxJar manage your Mississippi registration for you.

Once you are registered to collect tax, the next step is to calculate and collect from customers. TaxJar’s Sales Tax API and calculation engine applies rooftop-accurate rates, which means that sales tax calculations are based on your customer’s state, county, city, and even district. Learn more about how to use TaxJar to calculate tax here

Who can handle my Mississippi sales tax filings for me?

At TaxJar, we help more than 20,000 sellers manage their sales tax needs every month. We help your business save on submitting your returns with our automated filing service called AutoFile.  Read more about how AutoFile can handle all of your returns in as many states as you’d like.

I’m selling to Mississippi buyers. Will TaxJar help me track nexus?

With TaxJar’s Economic Nexus Insights Dashboard, you can see where your business currently has nexus, where your business is approaching nexus, and recommended next steps on how to begin complying with sales tax in all states.

Proactive notifications let you know when you’re approaching or have reached thresholds, so you can stay in front of any changes to your nexus requirements.

Start a free, 30-day trial with TaxJar today to start monitoring your nexus thresholds in Mississippi and other states. 

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