The Mississippi sales tax rate is 7% as of 2024, with some cities and counties adding a local sales tax. Exemptions to the tax will vary. Goods subject to tax include physical property, like furniture, appliances, and vehicles. Prescription medicine and gasoline are exempt.
Sales Tax Permits
Before engaging in sales taxable business, a permit or registration license is required. A separate permit is needed for each location. The permit does not expire if the holder continues the same business.
When a customer claims sales tax exemption, the seller must collect a valid exemption certificate. If the certificate is lost, request a replacement. To be eligible for exemption, provide the certificate to the seller.
Organizations exempt from federal income tax are not automatically exempt from state sales taxes. You may need to file a separate application for Mississippi sales tax exemption.
Sales tax collection can be automated. Software delivers calculations in real time and integrates with existing business systems.
Exemptions and Nexus
Some goods are exempt from sales tax under state law. Examples include non-prepared food purchased with food stamps, prescription drugs, and some medical supplies.
Some customers are exempt from paying sales tax. To check your refund status online, go to the Department of Revenue website.
If you don’t have sales tax nexus, you generally don’t need a permit. Nexus means you have a sales tax collection responsibility in Mississippi. Nexus can be created by having a physical presence, economic presence, or other factors. Once you determine you have nexus, register for a permit.
The penalty for operating without a permit is a fine of up to $1,000 and/or imprisonment for up to six months.
You can sell goods at a one-time event with your existing permit. Businesses operating solely in states with no sales tax do not need a permit.
A permit allows business owners to collect and remit sales tax. Any business engaging in retail sales of tangible property must apply for one.
Most businesses selling a product or offering certain services will need to register for a permit. You can register on the Department of Revenue website.
It’s illegal to collect tax without a permit. So register first on the Department of Revenue website.