State of Mississippi Flag

Mississippi Sales Tax Guide for Businesses

Sales Tax Rate
7.0%
Local Taxes
Yes
Website
Department of Revenue
Tax Line
601-923-7015

We wrote this guide for online sellers who want to know if they even have to bother with sales tax in Mississippi, and if so, how best to tackle the sales tax situation in the Magnolia State.

After reading this, you’ll know:

  • Do you or don’t you need to collect Mississippi sales tax?
  • Which customers do you collect from?
  • How much do you collect?
  • What do you do with all the sales tax you’ve collected?
  • Way more than you probably ever wanted to know about Mississippi sales tax!

Do you have sales tax nexus in Mississippi?

Good news! You only have to begin thinking about Mississippi sales tax if you have sales tax nexus in Mississippi.

“Sales tax nexus” is just a fancy way of saying “significant presence” in a state.

Mississippi considers a seller to have sales tax nexus in the state if you have any of the following in the state:

  • Owns an office or place of business
  • Has employees or agents of the business who service customers in Mississippi or solicit or accept orders for merchandise

You can click here to read exactly what the Mississippi Department of Revenue (Mississippi’s taxing authority) has to say about what constitutes sales tax nexus in Mississippi.

Is what you’re selling even taxable?

You’ve probably read this far because you realized you have sales tax nexus in Mississippi. Your next step is to determine if what you’re selling is even taxable.

Services in Mississippi are generally not taxable. So if you’re a photographer or a framer, you’re in luck and you don’t have to worry about sales tax. But watch out – if the service you provide includes creating or manufacturing a product, or installing or repairing a product you’ve sold, you may have to deal with the sales tax on products.

Tangible products are taxable in Mississippi, with a few exceptions. These exceptions include certain prescription medicine, medical devices, and items used in manufacturing.

So if you sell widgets, then charge sales tax to your Mississippi customers.

But if you’re a web developer, don’t charge sales tax to your Mississippi customers.

If you have sales tax nexus in Mississippi and your products are taxable, your next step is to register for a sales tax permit.

How to Register for a Sales Tax Permit in Mississippi

Sellers with sales tax nexus in Mississippi must apply for a Mississippi sales tax permit.

Don’t skip this step! Many states consider it unlawful to collect sales tax in their name without a permit. Go here for more on how to register for a sales tax permit in Mississippi.

How to Collect Sales Tax in Mississippi

So you’ve determined that you have sales tax nexus in Mississippi and what you’re selling is taxable. And you’re all set and registered for your Mississippi sales tax permit.

The next step is to determine how much sales tax to collect.

The sales tax rate you collect in Mississippi depends on whether you are based in Mississippi or out-of-state.

How to Collect Sales Tax in Mississippi if You are Based in Mississippi

Mississippi is an origin-based sales tax state. So if you live in Mississippi, collecting sales tax is fairly easy. Collect sales tax at the tax rate where your business is located.

You can look up your local sales tax rate with TaxJar’s Sales Tax Calculator or by going to TaxJar.com/mobile on your mobile device.

Example: You live and run your business in Tupelo, MS, in the 38801 zip code. The sales tax rate in Tupelo is made up of the 7% Mississippi sales tax rate plus the .25% Tupelo rate for a total of 7.25%. You would charge all of your Mississippi customers, no matter where in the state they live, that 7.25% sales tax rate.

If you have more than one location in Mississippi, then you would base the sales tax rate you charge on the point of origin of your sale.

How to Collect Sales Tax in Mississippi if you are Not Based in Mississippi

If you are based outside Mississippi, but have sales tax nexus and are required to charge sales tax in Mississippi, you are a “remote seller” and only required to charge “use tax.” Use tax is very similar to sales tax except that it’s charged by remote sellers. Mississippi’s use tax rate is 7%.

Should you collect sales tax on shipping charges in Mississippi?

As long as the item you are shipping is taxable, then Mississippi considers the shipping charge a part of the sale and requires that merchants collect sales tax on the shipping charges along with the price of the item.

Read a full explanation of sales tax on shipping in Mississippi here.

Rank City Population County Total
1 Jackson 173,514 Hinds 8.00%
2 Gulfport 67,793 Harrison 7.00%
3 Southaven 48,982 DeSoto 7.00%
4 Hattiesburg 45,989 Forrest 7.00%
5 Biloxi 44,054 Harrison 7.00%
6 Meridian 41,148 Lauderdale 7.00%
7 Tupelo 34,546 Lee 7.25%
8 Greenville 34,400 Washington 7.00%
9 Olive Branch 33,484 DeSoto 7.00%
10 Horn Lake 26,066 DeSoto 7.00%
11 Clinton 25,216 Hinds 7.00%
12 Pearl 25,092 Rankin 7.00%
13 Madison 24,149 Madison 7.00%
14 Ridgeland 24,047 Madison 7.00%
15 Starkville 23,888 Oktibbeha 7.00%
16 Vicksburg 23,856 Warren 7.00%
17 Columbus 23,640 Lowndes 7.00%
18 Pascagoula 22,392 Jackson 7.00%
19 Brandon 21,705 Rankin 7.00%
20 Oxford 18,916 Lafayette 7.00%

Caption: Top 20 Most Populous Cities in Mississippi and their Sales Tax Rates

When are Mississippi Sales Tax Returns Due?

Mississippi sales tax returns are always due the 20th of the month following the reporting period. You’ll be assigned a sales tax filing frequency when you apply for your Mississippi sales tax permit.

To break it down:

2016 Mississippi Monthly Sales Tax Filing Due Dates

Retailers with an average sales tax liability of $300 or more per month are generally required to file a monthly sales tax return.

Taxable Period Due Date
January February 22, 2016*
February March 21, 2016*
March April 20, 2016
April May 20, 2016
May June 20, 2016
June July 20, 2016
July August 22, 2016*
August September 20, 2016
September October 20, 2016
October November 21, 2016*
November December 20, 2016
December January 20, 2017

2016 Mississippi Quarterly Sales Tax Filing Due Dates

Retailers with an average sales tax liability of less than $300 per month are generally either required to file a quarterly or annual sales tax return. Mississippi evaluates accounts from time to time and sometimes changes your filing frequency. They will notify you if this happens.

Taxable Period Due Date
Q1 (Jan - Mar) April 20, 2016
Q2 (Apr - Jun) July 20, 2016
Q3 (Jul - Sep) October 20, 2016
Q4 (Oct - Dec) January 20, 2017

2016 Mississippi Annual Sales Tax Filing Due Date

Retailers with an average sales tax liability of less than $300 per month are generally either required to file a quarterly or annual sales tax return. Mississippi evaluates accounts from time to time and sometimes changes your filing frequency. They will notify you if this happens.

Taxable Period Due Date
Year 2016 January 20, 2017

*indicates a due date pushed back due to a weekend or holiday

How to File Sales Tax in Mississippi

When it comes time to file sales tax in Mississippi you must do three things:

  1. Calculate how much sales tax you owe
  2. File a sales tax return
  3. Make a payment

We’ll walk you through these steps.

How to Calculate How Much Sales Tax You Owe in Mississippi

Calculating how much sales tax you should remit to the state of Mississippi is easy with TaxJar’s Mississippi sales tax report.

All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Mississippi sales tax return will be waiting for you in TaxJar. All you have to do is login!

How to File and Pay Sales Tax in Mississippi

  1. File online – File online at the Mississippi Department of Revenue. You can remit your payment through their online system.
  2. AutoFile - Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.

Other Facts You Should Know about Mississippi Sales Tax Filing

There are a few more things you should know about sales tax in Mississippi:

Penalties:

  • Late Filing Penalty – 10% of tax due
  • Late Payment Penalty – 10% of tax due for first offense; 15% of tax due for second; 25% of tax due for third; 50% of tax due for any subsequent offense

Other penalties for fraud or serial offenses include higher penalties and even criminal charges.

“Zero returns”:

Mississippi requires that any seller with a sales tax permit file a sales tax return on your due date even if you don’t have any sales tax to report or pay. Click here for a list of states that require zero sales tax returns.

Discounts:

Many states understand that collecting sales tax is a difficult burden on merchants, and will provide a discount to help alleviate some of this burden. In Mississippi, as long as the sales tax is paid on time, a discount of 2% of tax due, not to exceed $50 is allowed. Click here for more about state sales tax discounts.

Mississippi Sales Tax Holidays

Mississippi has 2 sales tax holidays in 2016:

July 29-30, 2016: Back to School Sales Tax Holiday September 2-4, 2016: Firearms, Ammunition and Hunting Supplies sales tax holiday

Check here for more information about Mississippi’s sales tax holidays including how to handle sales tax holidays as an online seller.

And that’s it. You’ve mastered Mississippi sales tax filing! Now that sales tax is out of the way, you can get back to what you do best – running your business.

Mississippi Sales Tax Resources

For more about Mississippi sales tax, check out the Mississippi section of the TaxJar blog.

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