How to Register for a Sales Tax Permit in Mississippi (2025 Guide)

Securing a Mississippi sales tax permit is essential for businesses looking to operate within the state. For remote sellers, it’s particularly important to understand the local regulations around economic nexus, which could require registration based on sales volume. Once registered, businesses must make sure that they’re adhering to specific filing requirements, such as collecting sales tax at the correct rate and meeting the state’s periodic reporting deadlines.

The process is straightforward but requires attention to detail, especially when considering the various local tax rates across Mississippi’s counties. Additionally, some businesses may need to post a sales tax bond if they lack a physical presence in the state.

In this guide, we’ll walk you through the steps to secure your Mississippi sales tax permit, covering the necessary documentation, registration process, and ongoing compliance requirements. 

Key Takeaways

• Who Needs to Register: Businesses with a physical presence in Mississippi, remote sellers exceeding $250,000 in annual sales, and marketplace facilitators.
• What Is a Mississippi Sales Tax Permit: Official authorization to collect and remit sales tax within the state.
• Registration Process: Apply online via Mississippi’s Taxpayer Access Point (TAP) portal with required business details.
• No Registration Fee: Mississippi charges no fee for sales tax permit registration, though some out-of-state businesses may need to post a sales tax bond.
• Immediate Collection Allowed: You can start collecting sales tax once you submit your application, but must wait for the official permit to display it.

What is a Mississippi Sales Tax Permit?

A Mississippi sales tax permit is an official authorization issued by the Mississippi Department of Revenue that allows businesses to collect sales tax from their customers and remit it to the state. 

This permit is sometimes referred to as a sales tax license or sales tax registration Mississippi.

• Required by Law: Any business making taxable sales within Mississippi must obtain a sales tax permit.
• Proof of Registration: The permit serves as proof that your business is registered with the tax authorities and authorized to collect sales tax.

Both in-state retailers and remote sellers need to adhere to these requirements to avoid penalties and interest. The sales tax permit system makes sure that Mississippi can track and collect tax revenue while maintaining fairness for all businesses. 

Without this sales tax permit in the state of Mississippi, businesses are not legally allowed to collect sales tax from customers for taxable transactions in the state.

Do You Need to Register for a Mississippi Sales Tax Permit?

Determining whether you need a Mississippi sales tax permit depends on several factors. Here’s a checklist to help you understand if you’re required to register:

• In-state sellers: All businesses with a physical presence in Mississippi making retail sales must register for a sales tax permit.
• Out-of-state sellers operating in Mississippi: If you’re an out-of-state business but operate a location in Mississippi, you’re required to register.
• Remote sellers: Out-of-state businesses without a physical presence may still need to register based on economic nexus thresholds.
• Sales representatives in Mississippi: Out-of-state businesses represented by salespeople who live in Mississippi and solicit orders for delivery in the state must collect use tax.
• Marketplace facilitators: Online platforms that facilitate sales for third-party sellers may have special registration requirements.

The Mississippi remote seller sales tax registration requirements were updated following the 2018 South Dakota v. Wayfair Supreme Court decision. This ruling eliminated the requirement that vendors must have a physical presence in a state to be subject to sales tax collection.

• Economic Nexus Definition: Mississippi defines economic nexus as having more than $250,000 in annual sales to Mississippi customers.
• Registration Requirement: If your business exceeds this threshold, you must register for a Mississippi sales tax permit, even without a physical presence in the state.

Many businesses choose to register voluntarily for the convenience of their customers, allowing Mississippians to pay taxes to their suppliers rather than directly to the state. This approach to Sales Tax Nexus compliance can simplify your business operations.

Step-by-Step: How to Get a Sales Tax Permit in Mississippi?

Obtaining a Mississippi sales tax permit is a clear, structured process designed to make sure that your business can legally collect and remit sales tax. Here’s an expanded, detailed guide to each step:

Step 1: Gather Required Information

Before starting your application, collect all necessary business details. You will need:

• Legal business name and mailing address
• Federal Employer Identification Number (EIN) or Social Security Number (for sole proprietors)
• Secretary of State Business ID (for corporations, LLCs, or partnerships)
• Business owner or responsible party information
• North American Industry Classification System (NAICS) code
• A copy of your IRS notice letter CP 575 (EIN assignment letter) may be required.
  Having this information ready makes sure of a smooth application process and reduces the risk of delays due to missing documentation.

Step 2: Access the Mississippi Taxpayer Access Point (TAP) Portal

Mississippi strongly encourages all businesses to register online through the Taxpayer Access Point (TAP) system. This portal is the official online platform for all state tax registrations, including sales tax.
Go to the TAP website and select “Register for taxes.” New users should click the “New Taxpayer” button to begin.

Step 3: Create a TAP Account

If you do not already have a TAP account, you’ll need to set one up. This account will be used to manage your tax filings and correspondence with the Mississippi Department of Revenue.

Step 4: Select the Registration Type

Within the TAP system, choose to register for a “Sales and Use Tax” permit. If your business has multiple locations, you must register each location separately and obtain a unique permit for each one.

Step 5: Complete the Application Form

Fill out the online application, providing all required business details. Double-checking your entries for accuracy, mistakes, or omissions can delay approval. Be prepared to upload supporting documents, such as your IRS CP 575 letter, if requested.

Step 6: Submit Your Application

Once you have reviewed your information, submit the application electronically through the TAP portal. There is no fee to apply for a Mississippi sales tax permit, though other business registration fees may apply depending on your business structure.

Step 7: Special Requirements for Out-of-State Businesses

If your business does not have a permanent location in Mississippi, you may be required to post a sales tax bond (surety or cash bond) before your permit is issued. This bond guarantees your sales tax obligations to the state and is mandatory for remote sellers or out-of-state businesses.

Step 8: Wait for Processing

After submission, the Department of Revenue will review your application. Most permits are processed and mailed within two weeks. Your official sales tax permit will be sent to the mailing address provided in your application.

Step 9: Receive and Display Your Permit

Once received, display your Mississippi sales tax permit prominently at your place of business as required by law. This authorizes you to begin collecting and remitting sales tax.

Step 10: Set Up Your Account for Ongoing Compliance

After registration, use your TAP account to file sales tax returns, manage account information, and stay compliant with state requirements. Remember to update your permit if your business address, ownership, or tax responsibilities change.

What Information Do You Need to Register?

Being prepared with all the necessary information will make your Mississippi sales tax registration process smoother. Here’s what you’ll need to have ready:

Business Information

• Legal business name
• Trade name or DBA (if applicable)
• Business address and mailing address
• Business type (sole proprietorship, LLC, corporation, etc.)
• Description of business activities
• Date the business started or will start in Mississippi

Identification Numbers

• Federal Employer Identification Number (FEIN)
• Social Security Number (for sole proprietors)
• Secretary of State business ID (for corporations, LLCs, and partnerships)

Contact Information

• Owner, officer, or responsible party details
• Contact person’s name, phone number, and email address

Additional Details

• Estimated monthly taxable sales
• Filing frequency preference (though this may be assigned by the state)

Having this information organized before you begin will significantly streamline your application process for a State of Mississippi sales tax permit. 

The application process is designed to gather comprehensive information about your business to guarantee proper tax administration.

How Much Does It Cost to Register for a Sales Tax Permit in Mississippi?

Good news for businesses looking to register in Mississippi, obtaining a Mississippi sales tax permit is free of charge. Unlike some states that charge application or processing fees, Mississippi does not impose any direct costs for sales tax registration.

However, it’s important to note that certain businesses may need to post a Sales Tax Bond or an approved Surety Tax Cash Bond. This requirement typically applies to:

• Businesses operating without a permanent place of business within Mississippi
• Employee leasing companies applying for withholding accounts

The bond amount for employee leasing companies must equal twice the withholding tax expected to be paid over a three-month period (or six months of withholding taxes).

While the Mississippi sales tax registration itself doesn’t have a fee, consider these potential bonding requirements when budgeting for your business compliance needs. The free registration makes Mississippi more accessible compared to some other states that charge substantial fees for similar permits.

How Long Does It Take to Get Approved?

After submitting your application for a Mississippi sales tax permit, you can expect to receive your permit in the mail within approximately two weeks. 

The Mississippi Department of Revenue processes applications efficiently, but having all required information correct and complete helps avoid delays.

The permit package you’ll receive includes:

• Your official sales tax permit
• Information about filing your taxes
• Other relevant materials to help you comply with Mississippi tax laws

If you haven’t received your packet within the expected timeframe, you can contact the Mississippi Department of Revenue at (601) 923-7700 for assistance. 

When calling, be prepared to provide your confirmation number and the date you registered online.

Unlike some states that offer immediate provisional permits, Mississippi’s process requires waiting for the physical permit to arrive before you can begin collecting sales tax. Plan your business launch accordingly to guarantee compliance from day one of operations.

Pro Tip: If you do not receive your permit within the expected timeframe, check your email spam folder for any correspondence from the Department of Revenue, and contact them if necessary.

Common Mistakes to Avoid When Registering

When applying for your Mississippi sales tax permit, watch out for these common pitfalls that could delay your application or create compliance issues down the road:

• Incorrect business classification: Selecting the wrong business type can affect your tax obligations and reporting requirements.
• Missing information: Incomplete applications will be returned without processing, delaying your ability to legally collect sales tax.
• Overlooking nexus requirements: Not understanding if your business activities create nexus in Mississippi could lead to non-compliance.
• Failing to account for all business locations: A separate application must be completed for each physical business location.
• Not addressing bond requirements: Some businesses must post bonds as part of their Sales Tax Remittance responsibilities.
• Ignoring marketplace facilitator obligations: If you sell through online marketplaces, understanding both your and the marketplace’s obligations is critical.
• Outdated contact information: Making sure that your mailing address is current prevents missing important communications from the tax authority.
• Tax liability issues: Applicants with “finally determined tax liability” with Mississippi do not qualify for a sales tax permit.

Avoiding these mistakes will help ensure a smooth registration process and proper ongoing compliance with Mississippi’s sales tax requirements.

What Happens After You Register?

Once your Mississippi sales tax permit application is approved and you receive your permit, several important next steps follow:

1. Display your permit: Your sales tax permit should be displayed at your place of business.
2. Set up your filing schedule: The Department of Revenue will assign you a filing frequency (typically monthly, quarterly, or annually) based on your estimated sales volume.
3. Implement tax collection: Begin collecting the appropriate sales tax rate (generally 7% statewide) on taxable sales.
4. Create recordkeeping systems: Establish processes to track your sales, the tax collected, and maintain required documentation.
5. Calendar tax deadlines: Mark your filing due dates to guarantee timely submission.
6. File returns: Even if you have no sales during a reporting period, you must file a “zero return” to remain compliant.

Filing Frequency:

Here’s a quick breakdown of the filing frequencies Mississippi may assign based on your sales activity:

Understanding your ongoing obligations is crucial for maintaining good standing with the Mississippi Department of Revenue. The Global Sales Tax Platform you choose for managing your compliance should handle these post-registration responsibilities efficiently.

Remember that your Mississippi sales tax permit has continuing obligations, including updating your registration if there are changes to your business structure, ownership, or location.

Special Considerations for Out-of-State or Remote Sellers

Remote sellers face unique challenges when going through Mississippi’s sales tax requirements. If you’re selling into Mississippi without a physical presence, here’s what you need to know:

• Economic Nexus Threshold: If you exceed $250,000 in annual sales to Mississippi customers, you must register for Mississippi remote seller sales tax registration.
• Enforcement: The Mississippi Department of Revenue started enforcing economic nexus rules after the June 2018 Wayfair Supreme Court decision, with active enforcement beginning December 1, 2017.
• Use Tax Account: Remote sellers exceeding the sales tax thresholds must register for a Mississippi Use Tax Account and begin collecting tax.

Even without meeting the economic nexus threshold, many out-of-state businesses voluntarily register to streamline tax collection for Mississippi customers. This approach makes sure that customers can pay the tax directly to the seller, avoiding the need to report use tax themselves.

Out-of-state sellers should also be aware that having representatives in Mississippi soliciting business can establish a physical nexus, even if there is no physical location. Understanding these nuances guarantees compliance while reducing administrative burdens.

Resources & Where to Register

To successfully complete your Mississippi sales tax permit application, use these official resources:

• Online Registration Portal: Register through Mississippi’s Taxpayer Access Point (TAP) at the official Mississippi Department of Revenue website.
• Mississippi Department of Revenue: Visit the department’s website for comprehensive information about sales and use tax requirements.
• Registration Information: Find detailed registration guidance on the Mississippi DOR TAP website.
• Contact Information: For questions, call the Mississippi Department of Revenue at (601) 923-7700
• District Service Offices: Registration applications can be mailed to the District Service Office for the county where your business is located.
• Forms and Instructions: Access official forms on the Department of Revenue website.

For businesses managing multi-state registrations or seeking streamlined compliance, Commenda offers a comprehensive sales tax platform. Commenda simplifies the registration process and ongoing tax management for businesses operating in Mississippi and beyond, providing automated solutions for nationwide compliance needs.

Simplify Sales Tax Compliance with Commenda

Commenda simplifies Mississippi sales tax permit registration and compliance. Our platform automates the registration process, guaranteeing accurate submission and keeping your business up-to-date with changing tax laws.

We handle multi-state compliance, making it easy to manage sales tax obligations across various jurisdictions. With our automated filing and remittance tools, ongoing compliance becomes straightforward and error-free. 

Commenda eliminates the guesswork, making sure that you collect the right amount of tax based on your business activities. Remote sellers and online businesses benefit from our expertise in Mississippi’s economic nexus rules. 

Let Commenda handle your sales tax needs, so that you can focus on growth. Schedule a demo today.