Mississippi Sales Tax Guide
Mississippi's state sales tax rate is 7%. Combined with local rates, buyers see 7% – 8% depending on the jurisdiction. Out-of-state sellers register once they cross the economic nexus threshold.
7%
up to 8%
$250K
annual revenue
2018
Wayfair year
Rate Structure
State base rate: 7%
Local option: Cities and counties in Mississippi can add local rates on top, bringing combined rates to 7% – 8%.
Sourcing: Most states use destination-based sourcing (rate is based on where the customer receives the product). Verify with Mississippi Department of Revenue for edge cases.
Economic Nexus
Out-of-state sellers must register and collect Mississippi sales tax once they exceed:
- $250,000 in annual sales to Mississippi customers
In-state sellers (physical presence) must register from day one — no threshold applies.
Effective enforcement began in 2018 following the South Dakota v. Wayfair decision.
Marketplace Facilitator Law
Yes — Mississippi has a marketplace facilitator law. Marketplaces like Amazon, Etsy, Walmart Marketplace, and eBay collect and remit sales tax on your behalf. Sales made through those marketplaces typically don't count toward your economic nexus threshold in Mississippi. Sales made through your own website or invoicing do count.
Registration Process
- 1
Confirm you have nexus
Use the Nexus Checker to confirm you've crossed the threshold. Physical presence triggers registration immediately.
- 2
Register with the Mississippi Department of Revenue
Typically 30-60 days after crossing threshold. Free registration (no fee) in most states. You'll get a sales tax permit / seller's permit.
- 3
Collect sales tax on taxable transactions
Configure your ecommerce platform (Shopify, Amazon, WooCommerce) to charge the correct destination rate. Most platforms have built-in tax logic.
- 4
File returns on schedule
Filing frequency (monthly/quarterly/annual) is set by the state based on your volume — typically monthly for high-volume sellers.
Multi-state seller? Consider a sales-tax service (TaxJar, Avalara) or a specialist CPA once you're registered in 5+ states — the return-filing workload compounds fast.
Mississippi Sales Tax Quirks
Rules and rate structures that make Mississippi different from other states — worth knowing before you register or file.
- Mississippi's state rate is 7.0% with a maximum 1% local addition — combined rate max 8.0%.
- Mississippi is one of few states that fully taxes groceries at the general rate (7%) — no exemption or reduced rate.
- Mississippi's sales tax on 'services' is limited compared to Louisiana or Kentucky.
Reference only.
Thresholds and rates change. Verify current values with the Mississippi Department of Revenue before registering or ignoring a state. Product taxability rules (SaaS, digital goods, services) vary significantly and are not covered here.