Mississippi charges one of the highest state sales tax rates in the country. Getting the rate, exemptions, or filing deadlines wrong triggers penalties fast. This guide gives you the verified 2026 numbers, every one checked against the Mississippi Department of Revenue.
What Is the Mississippi Sales Tax Rate in 2026?
Mississippi’s statewide sales tax rate is 7% in 2026, administered by the Mississippi Department of Revenue (DOR), per the DOR sales tax rates page. That is one of the highest state base rates in the US. Combined rates run from 7% to about 8%, because Mississippi allows very limited local sales taxes. Groceries dropped to 5% on July 1, 2025.
Most Mississippi cities add nothing on top of the 7% state rate. To confirm the combined rate for a specific address, use the Commenda sales tax calculator. The grocery rate cut is covered in its own section below.
Which Mississippi Cities Add Local Sales Tax?
Most Mississippi cities levy no general local sales tax, unlike Alabama and Louisiana. Jackson adds a special 1% infrastructure levy, and Tupelo adds 0.25%. Cities such as Biloxi, Gulfport, and Meridian stay at the 7% state rate. Some cities levy tourism taxes on restaurants and hotels only, which are not general sales tax rates.
| City | Local add-on | Combined rate | Source |
|---|---|---|---|
| Most Mississippi cities | 0% | 7% | Mississippi DOR |
| Tupelo | 0.25% | 7.25% | Mississippi DOR (Tupelo tax notice) |
| Jackson | 1% | 8% | Mississippi DOR (Jackson special sales tax notice) |
What Is the Difference Between Mississippi Sales Tax and Use Tax?
Sales tax is collected by the seller at the point of sale. Use tax is owed directly by the buyer at the same 7% rate when a seller does not collect Mississippi tax, most often on out-of-state purchases used in Mississippi. Example: a Mississippi business buys equipment from an out-of-state vendor that charges no tax, so the business self-assesses 7% use tax on its return.
Use tax closes the loophole that would otherwise let untaxed remote purchases undercut in-state sellers. Mississippi businesses report use tax on the same return they use for sales tax.
What Is Taxable in Mississippi? Goods and Services
Most tangible personal property (TPP) is taxable at 7%, and Mississippi taxes a broader range of services than most states. Retail goods carry tax unless a specific exemption or reduced rate applies. Services split into taxable and non-taxable categories, so the distinction matters for service businesses.
Taxable goods
Taxable TPP includes furniture, appliances, books, and prepared food. Groceries for home consumption are taxable too, now at the reduced 5% rate covered below.
Which services are taxable in Mississippi?
Taxable services include telecommunications, repair and installation services, and admissions to amusements and entertainment, per the Mississippi DOR. Professional services such as legal and accounting work are not taxable. Verify any borderline service against the DOR’s taxable services list before you rely on it.
What Is the Mississippi Contractor’s Tax?
Mississippi levies a separate 3.5% contractor’s tax on non-residential construction contracts exceeding $10,000, under Miss. Code Ann. §27-65-21, in place of regular sales tax on the contract. Residential construction is excluded. Manufacturing machinery within a contract is taxed at 1.5%, per the DOR guide for construction contractors.
Contracts over $75,000 require prepayment of the tax or a surety bond before work begins, per the same DOR guidance. This regime is specific to Mississippi and few competitors explain it.
Is Food Taxed in Mississippi? The 2025 Grocery Rate Cut
Yes, groceries are taxable, but House Bill (HB) 1 cut the grocery sales tax rate from 7% to 5%, effective July 1, 2025, per the DOR grocery tax notice. Governor Tate Reeves signed HB 1 on March 27, 2025. Mississippi previously taxed groceries at the full 7%, so any claim that groceries are exempt is wrong.
The 5% rate applies only to food and drink eligible for purchase under the Supplemental Nutrition Assistance Program (SNAP), per the enrolled HB 1 text amending §27-65-17. Non-SNAP-eligible food stays at 7%.
What Is Exempt From Mississippi Sales Tax?
Genuine exemptions include prescription drugs, certain medical items, and sales for resale. Groceries and clothing are not exempt: groceries are taxed at 5% and clothing at 7% outside the July holiday. Mississippi has no permanent clothing exemption.
| Item category | Treatment | Source |
|---|---|---|
| Prescription drugs | Exempt | Mississippi DOR |
| Sales for resale | Exempt with valid documentation | Mississippi DOR |
| Groceries (SNAP-eligible) | Taxed at 5% | HB 1 / Mississippi DOR |
| Clothing | Taxed at 7% (except July holiday) | Mississippi DOR |
Who Qualifies as a Tax-Exempt Customer in Mississippi, and What Certificate Do They Need?
Exempt purchasers include federal and Mississippi government agencies, specifically listed nonprofit and educational organizations, and businesses buying for resale. Each category needs different documentation. Mississippi exempts far fewer nonprofits than most states, so only organizations named in statute qualify.
| Purchaser type | Exempt? | Required documentation | Source |
|---|---|---|---|
| Federal and Mississippi government agencies | Yes, for official use | Purchase billed to and paid by the agency | Mississippi DOR |
| Statutorily listed nonprofits and educational orgs | Only if named in statute | DOR exemption letter | Miss. Code Ann. §27-65-111 / DOR |
| Businesses buying for resale | Yes | Mississippi sales tax permit number | Mississippi DOR |
Sellers must keep this documentation on file to defend exempt sales in an audit. Missing certificates are one of the most common audit failure points. Commenda’s indirect tax platform collects and renews exemption certificates automatically.
When Is the Mississippi Sales Tax Holiday?
Mississippi runs a back-to-school sales tax holiday from the second Friday of July through the following Sunday, per the DOR sales tax holiday notice. It covers clothing, footwear, and school supplies priced under $100 per item. Senate Bill (SB) 2470 (2024) extended it to three days. This is a temporary holiday, not a permanent exemption.
| Scope item | Detail | Source |
|---|---|---|
| Eligible items | Clothing, footwear, school supplies | Mississippi DOR |
| Price cap | Under $100 per individual item | Mississippi DOR |
| 2026 dates | July 10 to July 12, 2026 | Mississippi DOR |
| Excluded | Jewelry, handbags, watches, luggage, rentals | Mississippi DOR |
The $100 cap applies per item, not per transaction. An item priced at $100 or more is fully taxed at 7%.
Do I Need to Collect Sales Tax in Mississippi? Nexus Rules
You must collect Mississippi sales tax if you have physical or economic nexus. Physical nexus comes from an in-state presence. Economic nexus comes from sales volume. Either one obligates you to register and collect on taxable sales.
Mississippi physical nexus
Physical nexus triggers include an office, employees or agents, inventory in a warehouse or Fulfillment by Amazon (FBA) center, property ownership, trade show participation, and in-state delivery or services. Any one of these creates a collection obligation.
Mississippi economic nexus threshold: $250,000
Remote sellers with more than $250,000 in Mississippi sales over the prior 12 months must register and collect, per the DOR registration information for sales and use tax applicants. The test uses sales revenue only, with no transaction count, and Mississippi has enforced it since September 1, 2018. That threshold is 2.5 times the common $100,000 standard. Check your exposure with the Commenda US nexus guide.
How Do Marketplace Facilitator Rules Work in Mississippi?
Under Mississippi’s Marketplace Facilitator Act (House Bill 379, effective July 1, 2020), facilitators such as Amazon and Etsy that exceed $250,000 in Mississippi sales must collect and remit on all facilitated sales, per the Mississippi DOR. The $250,000 test applies to the facilitator’s aggregate sales, not to each seller individually.
If you sell only through a collecting facilitator, that facilitator handles collection on those sales. Direct sales through your own website still count toward your own $250,000 threshold and remain your obligation to collect and file.
How Do I Register for a Mississippi Sales Tax Permit?
Register free through the Mississippi Taxpayer Access Point (TAP) before making taxable sales. Create a TAP account, then provide your legal business name, address, Federal Employer Identification Number (FEIN) or Social Security Number (SSN), ownership details, business start date, and projected monthly sales. The permit arrives by mail in about two weeks.
The Mississippi sales tax permit has no fee and never expires, per the DOR. You can legally begin collecting as soon as your application is submitted.
When Are Mississippi Sales Tax Due Dates?
Returns are due by the 20th of the month following the reporting period. The DOR assigns monthly, quarterly, or annual frequency based on tax liability, and most businesses file monthly. Registered businesses must file even with zero taxable sales.
| Frequency | Assigned when | Due date | Source |
|---|---|---|---|
| Monthly | More than $300 average tax per month | 20th of the following month | Mississippi DOR |
| Quarterly | $50 to $300 per month | 20th after quarter end | Mississippi DOR |
| Annual | Under $50 per month | January 20 | Mississippi DOR |
Track every state deadline in one place with the Commenda compliance calendar.
How Do I File Mississippi Sales Tax?
File and pay online through TAP. Log in, select sales and use tax and the reporting period, report gross sales, taxable sales, and deductions, review, submit, and pay. Electronic filing is the standard method for Mississippi returns.
Payment methods and fees
TAP accepts Automated Clearing House (ACH) debit at no fee, e-check by bank routing and account number at no fee, and ACH credit initiated from your bank per DOR instructions. Credit and debit card payments carry a third-party processing fee, per the DOR payment page.
What Are the Penalties for Late Filing in Mississippi?
Filing late costs 10% of the tax due or $50, whichever is greater, per return. Paying late adds a 10% penalty, and interest accrues monthly on unpaid balances. For questions, contact the Mississippi DOR at (601) 923-7700.
| Violation | Penalty | Source |
|---|---|---|
| Late filing | 10% of tax due or $50, whichever is greater | Miss. Code Ann. / DOR |
| Late payment | 10% of tax due | Miss. Code Ann. / DOR |
| Negligence underpayment | 10% of the deficiency | Mississippi DOR |
| Willful evasion | Felony; up to $100,000 (individuals) or $500,000 (corporations); up to 5 years imprisonment | Miss. Code Ann. |
| Miscellaneous non-compliance | Up to $100 per instance | Mississippi DOR |
| Interest on unpaid tax | 0.5% per month | Miss. Code Ann. §27-65-39 |
How Commenda Helps With Mississippi Sales Tax
Commenda’s global indirect tax software monitors your physical and economic nexus across every state, registers you where you have exposure, and files Mississippi returns on time so penalties never accrue. It also collects and renews exemption certificates and alerts you before you cross a threshold.
Check your exposure with the Commenda US nexus guide, and look up any combined rate with the Commenda sales tax calculator. Book a demo to get a free Mississippi nexus exposure assessment.
