How to Pay Sales Tax in Mississippi
- File Online or Let TaxJar File for You
- Payments Are Included
Mississippi Sales Tax:
- Rates: 7% state tax and 0.07% local tax
- Exemptions for some items
- Permits required before operating a business
- File returns electronically
- Use tax applies if the seller doesn’t charge Mississippi sales tax
Who Collects Sales Tax in Mississippi?
A sales tax permit is required before operating a business subject to sales tax in Mississippi. Permits are issued by the Department of Revenue for each location.
What Creates Sales Tax Nexus in Mississippi?
Nexus can be established through economic activity or physical presence. This requires a business to collect and remit sales tax.
Mississippi Sales Tax Rates:
- The sales tax rate in Mississippi is 7% state tax and up to 1% local tax
- Some items are exempt from sales tax
Sales inside the state are taxed based on the seller’s address under Mississippi’s origin-based regime.
Businesses collect and pay this tax on sales of tangible personal property and certain services. Failure to properly do so can result in penalties.
Remote sellers charge 7% use tax on Mississippi sales if they have nexus but are based elsewhere. Whether to collect sales tax on shipping charges depends on various factors.
Some localities have additional sales taxes. Check with local governments to see if they have enacted any.