Mississippi Sales
Tax Rate

Mississippi's general retail sales tax rate is 7 percent in 2026. Qualifying groceries are taxed at 5 percent after the rate reduction that took effect July 1, 2025. Mississippi also taxes selected services, lodging, rentals plus other transactions under specific statutory rates.

The General Mississippi Retail Sales Tax Rate Is 7 Percent

Most retail sales of tangible personal property in Mississippi are taxed at 7 percent unless a specific exemption or reduced rate applies. The tax is based on gross proceeds of sales or gross income depending on the business activity.

Mississippi Groceries Are Taxed at 5 Percent in 2026

Mississippi reduced the tax rate on qualifying groceries from 7 percent to 5 percent beginning July 1, 2025. The 5 percent rate remains the current grocery rate in 2026.

For this rule, groceries generally mean food or drink for human consumption that would be eligible for purchase with federal food stamp benefits. Retailers should classify prepared food, alcohol plus other nonqualifying items separately rather than applying the 5 percent rate to every food-related sale.

How to Calculate Mississippi Sales Tax

Identify the taxable selling price, determine whether the 7 percent general rate, the 5 percent grocery rate or another statutory rate applies, then add any special local tourism levy that applies to the transaction.

These examples show state sales tax only. Certain cities or tourism districts impose additional taxes on hotels, restaurants, prepared food plus related activities.

Mississippi Taxes Several Services

Mississippi does not tax every service, but it taxes several categories of labor and services by statute. A business should review its exact activity before treating a service charge as exempt.

• Repairs of tangible personal property
• Rental or lease of personal property
• Admissions to amusement, sports or recreation
• Pest control
• Plumbing and electrical work
• Heating and air conditioning work
• Certain computer software services
• Dry cleaning and parking lot services
• Hotel, motel plus campground accommodations

Mississippi Tourism Taxes Can Raise the Local Total

Mississippi has many local tourism, restaurant, lodging plus economic development taxes that apply in specific cities or areas. These levies are imposed in addition to the state sales tax when the local law covers the transaction.

The local rules vary widely. Some apply only to hotels, some only to restaurants, while others cover both lodging and prepared food. A seller should confirm the current levy, effective period plus business definition for the specific city rather than using a statewide local percentage.

Use Tax Applies to Untaxed Purchases Used in Mississippi

Use tax applies when taxable goods are purchased for use, storage or consumption in Mississippi without Mississippi sales tax being paid at purchase. Businesses can owe use tax on purchases from out-of-state vendors when the vendor did not collect the required tax.

Seller's use tax also applies to certain out-of-state sellers that meet Mississippi's nexus rules. The tax prevents a taxable purchase from escaping state tax simply because the seller is located outside Mississippi.

Remote Seller Economic Nexus Is $250,000

An out-of-state business with Mississippi sales exceeding $250,000 during any 12-month period is treated as having substantial economic presence for sales and use tax purposes. The seller must register, collect plus remit the applicable tax.

Marketplace facilitators use the same $250,000 threshold for facilitated taxable Mississippi sales under the marketplace rules. A seller using a marketplace should still review direct sales made outside the platform.

Mississippi Businesses Need a Sales Tax Permit

A business engaging in activity subject to Mississippi sales tax must register with the Department of Revenue before operating. A separate permit is required for each business location.

The permit does not expire while the holder continues the same business at the same location. Registration plus return filing can be handled through the state's Taxpayer Access Point system.

Mississippi Sales Tax Returns Are Due by the 20th

Sales and use tax returns are generally due on the 20th day following the end of the reporting period. Mississippi reviews account liability to determine whether a taxpayer files monthly or quarterly.

Current guidance states that taxpayers with annual remittance below $3,600 can file quarterly, while taxpayers above $3,600 are generally required to file monthly. The Department can change a filing frequency after its annual review.

Sales Tax and Mississippi Income Tax Are Different

Sales tax is collected on taxable customer transactions. Mississippi income tax is based on taxable income, while payroll withholding applies to employee compensation. Businesses should keep these tax systems separate in bookkeeping and filing.

For personal income tax rules, see the Mississippi income tax guide. For wage calculations, use the Mississippi paycheck calculator rather than a sales tax formula.

If you need payroll documentation after genuine wage calculations are complete, the paystub maker can organize earnings and deduction records for lawful use.