Mississippi Sales Tax

Mississippi Sales Tax Guide (2026)

7% on general retail sales with essentially nothing layered on top, and a rate schedule that assigns different figures to different categories rather than granting exemptions.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: MS DOR & Miss. Code
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Quick Facts

Sales Tax at a Glance

General rate
7% [1]
General local add-on
None on the rate schedule [1]
Grocery rate
5% since Jul 1, 2025 [2]
Cars & light trucks
5% [1]
Heavy trucks & aircraft
3% [1]
Manufacturing machinery
1.5% [1]
Economic nexus
$250k in 12 months [3]
Residential utilities
0% [1]
Computer software services
Taxable at 7% [4]
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House Bill 1 cut the grocery rate from 7% to 5% in July 2025

The Build Up Mississippi Act added a reduced 5% rate for food or drink for human consumption, effective 1 July 2025. Before that, groceries carried the full general rate.[2]

Signed 27 March 2025 Effective 1 July 2025 5% on qualifying food and drink Fully exempt when bought with food stamps Eligibility keyed to federal food-stamp rules Everything else stays at 7%
It is not a general food rate. The 5% applies only to food that would qualify for exemption if it had been bought with food stamps, so anything outside that federal eligibility test remains at the general 7% rate.[2]
Estimate

Mississippi sales tax calculator

Mississippi · general rate 7%
Mississippi sets rates by category, not by location.
Rate applied–
Estimated sales tax–
Total with tax–

Estimate only. Mississippi’s rate schedule assigns its own figure to each statutory category, so classify the transaction before choosing a rate.[1] Talk to CrownGlobe about category mapping.

Rates & Registration

Mississippi Sales Tax Rates, Nexus & the category schedule

Mississippi rates by category

General retail sales7%
Food & drink for human consumption5%
Automobiles & light trucks5%
Construction contracts over $10,0003.5%
Wholesale food to vending operators8%

Mississippi taxes by assigning statutory rates to categories rather than by exempting things, which is why some categories carry rates below and even above the general 7%.[1]

Who must register

Either trigger applies: economic nexus where sales into Mississippi exceed $250,000 in any consecutive twelve-month period, with no transaction-count alternative, or any physical presence. The threshold is notably higher than the $100,000 most states use.[3]

Utilities are rated by use, not by certificate: residential electricity, fuels and water carry a 0% rate while the identical commercial supply is taxed at 7%, so the classification turns on how the customer uses it.[1]

Compliance

Sales Tax Registration and Filing

Register with the Mississippi Department of Revenue before making taxable sales.

How to register

  • Confirm nexus→
  • Sales & use tax permit application→
  • Permit issued→
  • Map your rate categories→
  • File and remit

The Department mails an annual supply of preprinted returns each July covering the following twelve months for businesses that file on paper.[5]

Filing & due dates

ItemWhere to confirmNotes
Return frequencyAssigned by the DepartmentSet on registration
Forms supplyMailed each JulyCovers Jul to Jun
Electronic filingDepartment portalPreferred method

Confirm your assigned frequency and due dates directly with the Department when your permit is issued, since the assignment depends on your expected volume.[5]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

Mississippi taxes tangible goods, computer software services, utilities to commercial users and a long list of repair and personal services, with rates set by statutory category.[1]

Generally taxable

  • Tangible retail goodsMiss. Code 27-65-17(1)(a)
  • Computer software sales & servicesMiss. Code 27-65-23
  • Commercial electricity, fuels & water7% rate
  • Telephone & telegraph services7% rate
  • Repair, laundry & cleaning servicesMiss. Code 27-65-23
  • Admissions to amusements7%, 3% at public coliseums

Exempt or zero-rated

  • Food bought with food stampsMiss. Code 27-65-111(o)
  • Residential electricity, fuels & water0% rate
  • Food & drink for home consumptionReduced 5% rate
  • Manufacturing machineryReduced 1.5% rate
  • Heavy trucks, aircraft & mobile homesReduced 3% rate
  • Sales for resaleWith permit documentation
Worth flagging: the 8% rate on wholesale sales of food and drink to full-service vending machine operators is higher than the general retail rate, so the usual assumption that wholesale transactions carry relief does not hold in Mississippi.[1]
Reference

Glossary of key terms

Gross proceeds of sales
The measure Mississippi applies its rate to for sales of tangible personal property.
Gross income of the business
The alternative base Mississippi applies to taxable services rather than to goods.
Category rate schedule
Mississippi’s approach of assigning separate statutory rates to defined transaction categories instead of granting exemptions.
Build Up Mississippi Act
House Bill 1 of the 2025 session, which cut the grocery rate to 5% effective 1 July 2025.
Marketplace facilitator
A person facilitating sales for third-party sellers, subject to the same $250,000 twelve-month threshold.
Doing business
Mississippi’s statutory nexus concept, met by exceeding $250,000 of sales into the state in any twelve consecutive months.
FAQ

Sales Tax FAQs

7% on general retail sales. Mississippi’s published rate schedule carries no general local add-on, so the state figure is normally the whole rate, and reduced statutory rates apply to several specific categories.

Yes, at a reduced 5% rate since 1 July 2025 under House Bill 1, the Build Up Mississippi Act. Food actually purchased with federal food stamps remains fully exempt.

Sales into Mississippi exceeding $250,000 in any consecutive twelve-month period. There is no transaction-count alternative, and the dollar figure is materially higher than the $100,000 most states use.

Yes. The Department’s rate schedule lists computer software sales and services among taxable services at 7% of the gross income of the business.

Because Mississippi taxes by statutory category rather than by exemption. Cars and groceries sit at 5%, heavy trucks and aircraft at 3%, construction contracts over $10,000 at 3.5%, manufacturing machinery at 1.5% and general goods at 7%.

It depends on use. Residential electricity, fuels and water carry a 0% rate, while the same supply to a commercial customer is taxed at 7%.

Verification

Sources & methodology

  1. MS DOR – Sales Tax Rates
  2. Office of the Governor – HB 1 Signing
  3. MS DOR – Sales & Use Tax
  4. MS DOR – Sales & Use Tax Technical Bulletins
  5. MS DOR – Sales & Use Tax Forms
  6. MS DOR – Sales & Use Tax Fact Sheets
  7. MS DOR – Business Tax Section
  8. MS DOR – News & Notices
  9. MS DOR – Contact & District Offices
  10. MS DOR – Department Home
  11. Office of the Governor – Newsroom
  12. Mississippi Legislature – Official Site
  13. MS DOR – Tax Laws, Rules & Regulations
  14. MS DOR – Online Services
Methodology: Every rate and threshold is taken from the Mississippi Department of Revenue’s published rate schedule, the enrolled text of House Bill 1 or the Mississippi Code. Filing frequencies are not stated here because the Department assigns them on registration rather than publishing fixed tiers.
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