Mississippi Sales Tax Guide

Do You Need to Collect and Remit Sales Tax in Mississippi? 

If your business sells tangible personal property or taxable services, then typically, the answer is yes. In this way, Mississippi keeps things relatively straightforward—but with just enough nuance to keep you on your toes.

What is tangible personal property? Simply put, it’s anything that can be seen, touched, measured, or otherwise perceived by the senses. Your kid’s Legos that you step on? Taxable. The avocado toast you order at your favorite local deli? Also probably taxable.

What is Not Taxable? (Common Exemptions)

Mississippi only exempts items when specifically allowed by law. Some key exemptions include:

• Prescription drugs 
• Residential utilities (electricity, gas, water)
• Retail sales of livestock
• Certain nonprofit and school purchases (with proper documentation)
• Sales to the federal government
• Groceries purchased with SNAP benefits

What Services Are Taxable in Mississippi?

Mississippi taxes many enumerated services. So if you’re in a service-based business, don’t assume you’re off the hook.

Common taxable services include:

• Repairs of tangible personal property 
• Pest control 
• Plumbing 
• Electrical work
• Landscaping and lawn services
• Car washing and motor vehicle services
• Computer software and certain digital-related services
• Hotel and lodging services

Mississippi Taxability Matrix

Here’s a practical breakdown of what’s taxable, reduced, or exempt:

Do You Have Sales Tax Nexus in Mississippi? 

Nexus is the connection between your business and a state that triggers a sales tax obligation. Mississippi recognizes both physical and economic nexus.

Physical Sales Tax Nexus

You have physical nexus if your business has a tangible presence in the state, including:

• Office, warehouse, or retail location
• Inventory stored in the state
• Employees, contractors, or agents operating in Mississippi
• Sales representatives soliciting or servicing customers

Economic Sales Tax Nexus

Economic nexus is based on the level of economic activity your business has in a state—no physical presence required. Mississippi’s threshold is:

• $250,000 in total sales into Mississippi over a rolling 12-month period

This threshold includes all sales into Mississippi, not just taxable ones. Once you cross the threshold, you’re required to register, collect, and remit sales tax.

Juggling multi-state nexus obligations and threshold tracking? We offer detailed nexus determinations and registration support across all states—without the “big firm” price tag. Take a look at our pricing options.

Are Marketplace Facilitators Required to Collect and Remit Sales Tax in Mississippi? 

Yes. Marketplace facilitators are required to collect and remit tax on behalf of third-party sellers if they exceed the state’s economic nexus threshold:

• $250,000 in Mississippi sales over a consecutive 12-month period

Once that threshold is met, the marketplace facilitator—not the seller—handles tax collection and remittance for marketplace transactions. Sellers should still retain detailed records of marketplace sales for audit purposes.

Where things get a bit more nuanced is in how marketplace sales interact with your own nexus determination. Marketplace sales should be excluded from your business’s nexus threshold. If you’re also making direct sales (such as through your own website), those sales are what determine whether you independently meet Mississippi’s nexus threshold. Keeping marketplace and direct sales clearly separated in your records is critical to avoiding confusion—and potential compliance issues.

There’s also a unique wrinkle when it comes to food delivery platforms. When a delivery service facilitates orders for restaurants it does not own, it is not treated as the retail seller in the traditional sense. Instead, the platform pays the applicable tax to the restaurant on the food portion of the transaction, and does not charge sales tax to the customer on the delivery fee itself. It’s a subtle distinction, but one that can easily lead to reporting errors if misunderstood.

What Platforms Are Marketplace Facilitators? 

• Amazon 
• eBay 
• Etsy 
• Walmart Marketplace
• Shopify Shop App

Filing Mississippi Sales Tax 

If you’ve determined that you need to collect and remit sales tax in Mississippi, your first step is getting registered.

How to Register

Registration is completed online through Mississippi’s Taxpayer Access Point (TAP), the state’s central hub for tax accounts.

For in-state businesses, a separate permit is required for each location. Once issued, that permit remains active as long as you continue operating at that location. Out-of-state sellers without a physical presence in Mississippi will register for a Seller’s Use Tax account instead.

After completing the process, most businesses receive their permit packet within about two weeks.

How to Collect Mississippi Sales Tax

Once you’re registered, the next step is collecting the correct amount of tax. Fortunately, Mississippi keeps the structure relatively simple—though there are a few details worth paying attention to.

The statewide sales tax rate is 7%, which applies to most retail sales and many services. However, several reduced rates come into play depending on what you’re selling. Groceries, for example, are taxed at 5% (as of July 1, 2025), while motor vehicles are also generally taxed at 5%. Certain categories like manufacturing machinery and farm equipment can drop even lower, often in the 1% to 1.5% range.

Local tax is where Mississippi stands out. Unlike many states, there isn’t a widespread system of layered local sales taxes. That said, there are limited exceptions—Tupelo (0.25%) and Jackson (1%) impose additional local sales taxes, and various cities apply targeted taxes on hotels, restaurants, and tourism-related activities.

For most businesses, rate calculation is fairly straightforward, but getting the product or service classification right is critical. In Mississippi, what you’re selling often matters just as much as where you’re selling it.

How to File Mississippi Sales Tax

Once you’ve collected tax, you’ll need to report and remit it to the state. Mississippi gives you two filing options:

Paper Filing:

• Pre-addressed sales tax returns are mailed to taxpayers 30 days before the due date. They must be completed, postmarked, and paid by the due date.

Online Filing (recommended):

• Most businesses opt to file online through Taxpayer Access Point (TAP). It’s faster, more reliable, and eliminates the risk of mailing delays.

Mississippi also offers a small incentive for staying on schedule: a 2% vendor’s discount on the tax due, capped at $50 per reporting period. It won’t change your bottom line, but it’s a nice bonus for filing on time.

When Are Sales Tax Returns Due in Mississippi? 

Mississippi assigns filing frequencies based on how much tax you collect over time. Higher-volume businesses typically file monthly, mid-sized filers are assigned quarterly, and smaller businesses may file annually.

Regardless of frequency, the due date rule is consistent: returns are due on the 20th of the month following the reporting period. If that date falls on a weekend or holiday, the deadline shifts to the next business day.

For a quick breakdown of how filing frequencies work in practice, see the graphic below.

Need Help Staying Compliant?

Mississippi may be simpler than some states—but “simple” doesn’t mean foolproof. Between reduced rates, contractor rules, and marketplace nuances, many businesses get tripped up.

That’s where SalesTaxSolutions.US comes in. From nexus analysis to registration to filing, we handle the entire process so you don’t have to. Get started today with transparent pricing with no locked-in contracts!