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

Due dates generally the 20th

When are Mississippi Sales Tax Returns Due?

When you file and pay Mississippi sales tax depends on two things: your assigned filing frequency and your state’s due dates.

How often will you file sales tax returns in Mississippi?

States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.

In Mississippi, you will be required to file and remit sales tax either monthly, quarterly, or annually.

How often you are required to file sales tax in Mississippi follows this general rule:

Average Monthly Tax Liability Filing Frequency
$300.01 and up Monthly
$50.01 to $300.00 Quarterly
$0 to $50.00 Annually

Mississippi sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.

2017 Mississippi Monthly Sales Tax Filing Due Dates

Taxable Period Due Date
*January February 21, 2017*
February March 20, 2017
March April 20, 2017
*April May 22, 2017*
May June 20, 2017
June July 20, 2017
*July August 21, 2017*
August September 20, 2017
September October 20, 2017
October November 20, 2017
November December 20, 2017
* December January 22, 2018*

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

2017 Mississippi Quarterly Sales Tax Filing Due Dates

Taxable Period Due Date
Q1 (Jan - Mar) April 20, 2017
Q2 (Apr-Jun) July 20, 2017
Q3 (Jul-Sep) October 20, 2017
*Q4 (Oct-Dec) January 22, 2018*

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

2017 Mississippi Annual Sales Tax Filing Due Dates

Taxable Period Due Date
*Year 2017 January 22, 2018*

Click here for more info on Mississippi sales tax filing due dates in 2017.

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 2017:

July 28-29, 2017: Back to School Sales Tax Holiday

August 25-27, 2017: 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.

Start managing your sales tax today. Be up and running in minutes Start Your Free Trial