This blog was last updated on July 1, 2026
Selling into Mississippi requires more than knowing the state’s 7% sales tax rate. Businesses must also understand origin-based sourcing, economic nexus requirements, product-specific tax treatment and industry-specific rules that can impact compliance.
Whether you’re expanding into Mississippi or already selling within the state, this guide explains what businesses need to know about Mississippi sales tax, registration, exemptions and filing obligations.
Sales Tax in Mississippi
Mississippi imposes a statewide sales and use tax rate of 7%, one of the highest statewide sales tax rates in the United States. The state does allow local jurisdictions to levy certain additional taxes, although most retail sales are subject to the statewide rate administered by the Mississippi Department of Revenue.
What’s Taxable in Mississippi?
Mississippi sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items and services include:
- Clothing and footwear
- Prewritten computer software
- Digital goods (e-books, digital audio-visual works, digital audio)
- Telecommunications services (telephone, telegraph, cable TV)
- Certain repair and installation services (plumbing, HVAC, electrical work)
- SaaS hosted on servers located within Mississippi
- Dry cleaning and laundry services
- Admissions to amusements and entertainment venues
- Short-term motor vehicle rentals and hotel accommodations
Sales Tax Nexus in Mississippi
A seller is liable to collect and remit Mississippi sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Mississippi: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Mississippi.
Mississippi: Economic Nexus
Mississippi enforces economic nexus for remote sellers.
If your business has more than $250,000 in sales into Mississippi during the previous 12-month period, with no transaction threshold, you may be required to register for a Mississippi sales tax permit and begin collecting Mississippi sales tax.
Businesses selling across multiple states should regularly monitor their sales activity to determine when Mississippi’s economic nexus threshold has been exceeded.
Learn more from the Mississippi Department of Revenue.
How to Register for a Mississippi Sales Tax License
Mississippi businesses or individuals selling tangible personal property or certain services to Mississippi consumers may need to register before collecting sales tax.
If you’re wondering how to register for Mississippi sales tax, businesses can apply for a Mississippi sales tax permit through the Mississippi Department of Revenue’s Taxpayer Access Point (TAP). Once registered, businesses can manage their tax account, file returns and remit payments electronically.
More information may be found here.
Mississippi Sales Tax Exemptions
Certain sales in Mississippi are considered generally exempt from the sales and use tax requirements.
Exempt Products and Services
- Prescription medications and insulin
- Groceries eligible for SNAP benefits (taxed at a reduced 5% rate as of July 1, 2025)
- Agricultural items (farm tractors, implements, and certain supplies)
- Manufacturing machinery and equipment used directly in production
- Residential electricity, water, and fuels
- Most professional services (legal, accounting, architectural, medical)
- SaaS hosted on servers outside Mississippi and accessed remotely
Entity or Use Based Exemptions
Additionally, Mississippi exempts sales to certain entities from the sales/use tax, including the following:
- Sales made directly to the federal government, the state of Mississippi, and counties and cities within Mississippi
- Sales made directly to nonprofit and public schools (not daycares)
- Sales made to certain nonprofit agencies specifically exempt by the Legislature, such as the American Red Cross, Salvation Army, and Boy Scouts & Girl Scouts of America
- Churches and houses of religious worship
- Retailers purchasing goods for resale (with a valid Mississippi sales tax permit number)
- Manufacturers purchasing raw materials used directly in the production process
How to Claim Sales Tax Exemption in Mississippi
To claim an exemption, an entity must provide an exemption certificate with the sale.
The Mississippi Department of Revenue accepts a variety of exemption certificates depending on the transaction type. Maintaining accurate exemption documentation is critical for supporting exempt sales during an audit and reducing compliance risk.
To claim an exemption, an entity must provide an exemption certificate with the sale. Additional guidance on acceptable exemption formats can be found here.
Mississippi Filing and Remittance Requirements
Mississippi offers multiple methods for filing and remitting sales and use tax:
- E-filing through TAP
- Paper filing:
- Form 72-010
- Form 72-110
Businesses responsible for collecting sales tax should complete Mississippi sales tax filing according to the schedule assigned by the Mississippi Department of Revenue. Filing returns and remitting payments on time can help businesses avoid penalties, interest and unnecessary compliance risk.
Frequently Asked Questions
Is Mississippi a part of the Streamlined Sales Tax (SST) initiative?
No, Mississippi is not a Streamlined Sales and Use Tax Agreement (SSUTA) member.
Does Mississippi have sales tax holidays?
Yes, Mississippi does currently offer sales tax holidays for back to school retail purchases as well as a Second Amendment holiday.
Are there any special point of sale fees in Mississippi?
Mississippi imposes the following point of sale fees:
- MS E911 Fee
- MS Trauma Care Fee
- MS Short-Term Motor Vehicle Rental Tax
- Local Option Meals Tax
Does Mississippi apply sales tax to shipping charges?
Mississippi applies sales tax to the whole price of the item, which includes shipping, handling, and delivery, even if separately stated. If the item isn’t taxable, the shipping isn’t taxable.
For sourcing sales tax, is Mississippi origin or destination based?
Mississippi is an origin-based sales tax state.
What are the penalties for filing or paying Mississippi sales tax late?
If a business fails to file its sales tax return by the due date, a penalty of 10% of the tax due or $50, whichever is greater, may be assessed. Additionally, interest accrues at 0.5% per month from the date the tax was due until it is paid.
How does Mississippi sales tax apply to construction contractors?
Construction contractors are subject to a unique tax structure in Mississippi. Mississippi Sales Tax Law levies a 3.5% contractor’s tax on all construction, renovation, or repair of non-residential real property when the total contract price or compensation received exceeds $10,000. If the contract exceeds $75,000 in scope, or if the contractor is from another state, the contractor’s tax must be paid before work begins.
What sales tax exemptions are available for manufacturers in Mississippi?
Mississippi offers significant tax relief for manufacturers. The Mississippi sales tax exemption for manufacturing includes raw materials, packaging supplies, catalysts, chemicals, and gases used directly in processing, as well as electricity, gas, steam, and other fuels used in the industrial process — all of which can be purchased completely tax exempt.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
As your business expands into new markets, sales tax obligations become more than a registration exercise—they become an ongoing operational challenge. Sovos helps finance and tax teams automate tax determination, streamline return filing and stay ahead of changing state requirements, giving businesses the confidence to scale without adding compliance complexity. Learn more.