Mississippi Sales Tax Guide

The sales and use tax rate in Mississippi is 7 percent. Some items could have a lower tax rate. Mississippi also has a use tax complementary to the sales tax and several additional taxes for certain industries.

This guide does not fully describe all of Mississippi’s laws and regulations regarding taxes. Businesses should contact a business attorney or visit the Mississippi Department of Treasury website to learn more about the rules, regulations, tax laws and tax information associated with their industries and the types of taxes due.

Types of taxes

Mississippi has several taxes in addition to the sales and use tax rates.

Sales and use tax

Any business that sells tangible personal property must collect and remit a sales tax of 7 percent. The use tax rate is the same as it works in conjunction with the sales tax. If a business has more than one location, it needs a separate tax permit for each location. Permits do not expire, nor do they require renewal for the same business at the same location.

Businesses must file returns electronically. For those that do not have internet access, the state sends pre-addressed tax forms every year.

Businesses must pay use tax if they purchased taxable items but did not pay the tax and did not resell the items.

Tourism and development

Mississippi has a tourism and development tax that is set at the local level. The taxes for local jurisdictions are as follows:

  • Aberdeen: 1 percent for lodging and restaurants. This tax is in addition to the state’s sales and use tax.
  • Baldwyn: 2 percent for lodging and restaurants. This tax is in addition to the state’s sales tax. It has a repeal date of July 1, 2023.
  • Batesville: 3 percent for lodging and restaurants. This tax is in addition to the state’s sales tax. It has a repeal date of July 1, 2023.
  • Bay Springs: 3 percent for lodging, but excludes charges for food, laundry, telephone, and similar charges by the lodging establishment. This tax is in addition to the state’s sales tax. There is no repeal date.
  • Booneville: 2 percent on lodging and restaurants. This tax is in addition to the state’s sales tax. The repeal date is July 1, 2025.
  • Brandon Amphitheatre and Ancillary Improvement Tax: 3 percent on lodging in the City of Brandon. This tax is in addition to the state’s sales tax. It has a repeal date of July 1, 2030.
  • Brandon: 2 percent on restaurants and bars. This tax is in addition to all other taxes imposed. It has a repeal date of July 1, 2024.
  • Brookhaven: 2 percent for lodging. This tax is in addition to all other taxes imposed. The repeal date is July 1, 2025.
  • Byram: 2 percent for lodging. This tax is in addition to all other taxes imposed. The repeal date is July 1, 2025.
  • Canton: 2 percent for restaurants, lodging, beer, and alcoholic beverages consumed on the premises. This tax is in addition to all other taxes imposed. It does not have a repeal date.
  • Carrollton: 2 percent on restaurants in the city limits of Carrollton. This tax is in addition to all other taxes imposed. It has a repeal date of July 1, 2023.
  • Carthage: 2 percent on lodging and restaurants. This tax is in addition to all other taxes imposed. It has a repeal date of July 1, 2024.
  • Charleston: 2 percent on restaurants in the corporate limits of Charleston. This tax is in addition to all other taxes. The repeal date is July 1, 2023.
  • Cleveland Economic Development Tax: 2 percent on lodging and restaurants. This tax is in addition to all other taxes. It does not have a repeal date.
  • Clinton: 2 percent on lodging. The tax is in addition to other taxes imposed. It does not have a repeal date.
  • Clinton: 1 percent on the gross proceeds of sales of hotels and motels in the City of Clinton. This tax is in addition to all other taxes imposed. The repeal date is July 1, 2023.
  • Coahoma: 2 percent on lodging, with the exception of charges for laundry, telephone, and similar services. Renting of rooms for day meetings is exempt as long as the room is not used for overnight sleeping accommodations. This tax is in addition to all other taxes imposed. It does not have a repeal date.
  • Coahoma: 1 percent on restaurants and bars, including beer and alcoholic beverages. This tax is in addition to all other taxes imposed. It does not have a repeal date.
  • Columbia: 3 percent on lodging and restaurants. This tax is in addition to all other taxes. It has a repeal date of July 1, 2023.
  • Columbus-Lowndes Community Development Tax: 2 percent on restaurants in the City of Columbus. This tax has a repeal date of July 1, 2023.
  • Columbus-Lowndes County Convention Tax: 2 percent on lodging in Lowndes County. This tax is in addition to all other taxes imposed. It does not have a repeal date.
  • Corinth Area: 2 percent tax on lodging and restaurants. If 50 percent or more of the proceeds are from prepared food at a restaurant, the tax is assessed on all food and beverages. If less than 50 percent of the gross revenue of the restaurant is from prepared food, the tax is only assessed on prepared foods. This tax is in addition to all other taxes. It does not have a repeal date.
  • Desoto County: 2 percent on restaurants and lodging. Restaurants that do not sell alcoholic beverages and have gross sales or income of less than $100,000 per year are exempt. This tax is in addition to all other taxes imposed. It does not have a repeal date.
  • Florence: 2 percent on restaurants, including beer and alcoholic beverages. This tax is in addition to all other taxes imposed. It has a repeal date of December 31, 2024.
  • Flowood Conference Center Tax: 3 percent on lodging. This tax is in addition to all other taxes. The repeal date is July 1, 2029.
  • Flowood Tourist and Recreation Tax: 2 percent on restaurants, including beer and alcoholic beverages. This tax is in addition to all other taxes. It has no repeal date.
  • Fulton: 3 percent on lodging. This tax is in addition to all other taxes. The repeal date is July 1, 2024.
  • Greenwood: 1 percent on restaurants and lodging. Phone, laundry and similar services are exempt, as are room rentals for day meetings, as long as the rooms do not serve as overnight accommodations. Restaurants with gross proceeds of less than $100,000 and that do not sell alcoholic beverages are exempt. The tax is in addition to all other taxes. The repeal date is September 30, 2025.
  • Grenada: 2 percent on lodging. Exemptions include telephone laundry and similar charges and room rentals for day meetings as long as the room is not used for overnight sleeping. This tax is in addition to all other taxes. The repeal date is September 30, 2022.
  • Grenada: 1 percent on restaurants. Establishments with gross sales of less than $100,000 per year are exempt. This tax is in addition to all other taxes. The repeal date is September 30, 2022.
  • Grenada Tourist and Convention Tax: 1 percent on lodging and restaurants and bars in the City of Grenada. Exemptions include telephone, laundry, and similar charges, rooms rented for day use only, and restaurants with gross sales of less than $100,000 per year. This is in addition to all other taxes imposed. The repeal date is September 30, 2022.
  • Hancock County: 2 percent for lodging. This tax is in addition to all other taxes. The repeal date is July 1, 2025.
  • Hattiesburg Convention Promotion Tax: 2 percent on restaurants and establishments selling alcoholic beverages for on-site consumption. This tax is in addition to all other taxes imposed. It does not have a repeal date.
  • Hattiesburg Tourism Parks and Recreation Tax: 1 percent on lodging and restaurants. The repeal date is July 1, 2022.
  • Hattiesburg Tourism Promotion Tax: 2 percent on lodging. This tax is in addition to all other taxes. The repeal date is July 1, 2024.
  • Hernando: 1 percent on lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Holly Springs: 2 percent on lodging and restaurants. This tax is in addition to all other taxes. It does not have a repeal date.
  • Horn Lake Occupancy Tax: $2 per room per night. It has a repeal date of July 1, 2022.
  • Houston Parks and Recreation and Community Economic Development Tax: 2 percent on restaurants and lodging. This tax is in addition to all other taxes. The repeal date is December 31, 2024.
  • Indianola: 2 percent on lodging and restaurants. This tax is in addition to all other taxes. The repeal date is July 1, 2025.
  • Jackson (City) Capital Convention Center Tax: 1 percent on restaurants, 3 percent on lodging, and 3 percent on convention center caterers. These taxes are in addition to all other taxes. Open-ended repeal date until debt is paid.
  • Jackson (City) Convention and Visitors Bureau Tax: 1 percent on restaurants and lodging. This tax is in addition to all other taxes imposed. The repeal date is July 1, 2022.
  • Jackson County Hotel and Motel Tax: 2 percent on lodging. This tax is in addition to all other taxes. The repeal date is July 1, 2022.
  • Jackson County Occupancy Tax: $0.75 per day. Lodging facilities 10 or fewer rooms are excluded. This tax is in addition to all other taxes.
  • Kosciusko: 2 percent on lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Lauderdale County Tourism Commission Tax: 2.5 percent on lodging. This tax is in addition to all other taxes. The repeal date is October 1, 2025.
  • Lauderdale Recreation and Public Improvement Tax: 2 percent on lodging and restaurants. This tax is in addition to all other taxes. It has no repeal date.
  • Lexington: 2 percent on restaurants. This tax is in addition to all other taxes. The repeal date is July 1, 2023.
  • Louisville: 2 percent on lodging. This tax is in addition to all other taxes. The repeal date is July 1, 2025.
  • Magee: 1 percent on restaurants and lodging: This tax is in addition to all other taxes. It does not have a repeal date.
  • McComb: 3 percent on lodging. The repeal date is July 1, 2023.
  • Meridian: 2 percent on restaurants in the City of Meridian. This tax is in addition to all other taxes. The repeal date is “the first day of the month immediately succeeding the date the payment of […] under House Bill 1770, 2005 Regular Session has been paid in full.”
  • Mississippi Coast Coliseum and Convention Center Tax: 2 percent on lodging. This tax is in addition to all other taxes. The repeal date is “on the first day of the month immediately succeeding the date the payment of the […] pursuant to Sections 1 through 12 of House Bill 1823, 2004 Regular Session have been paid in full.”
  • Mississippi Gulf Coast Regional Convention and Visitors Bureau Tax: 3 percent on lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Mize: 2 percent on restaurants. This tax is in addition to all other taxes. The repeal date is July 1, 2025.
  • Montgomery County: 2 percent on lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Moss Point: 3 percent on lodging. This is in addition to any other taxes. It does not have a repeal date.
  • Natchez Convention and Tourism Tax: 3 percent for lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Natchez Convention and Tourism Tax: 1.5 percent on restaurants. This tax is in addition to all other taxes. It does not have a repeal date.
  • Natchez Occupancy Tax: $2 per day for lodging. This tax is in addition to all other taxes.
  • New Albany: 2 percent for lodging and restaurants. This tax is in addition to all other taxes. It does not have a repeal date.
  • Newton County: $1 per day on lodging. This tax is in addition to all other taxes.
  • North Carrollton: 2 percent on restaurants. This tax is in addition to all other taxes. The repeal date is July 1, 2023.
  • Ocean Springs Food and Beverage Tax: 2 percent on restaurants. This tax is in addition to all other taxes.
  • Ocean Springs Tourism and Economic Development Tax: 2 percent on lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Oxford Tourism and Economic Development Tax: 2 percent on lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Oxford Tourism and Stadium Construction Tax: 2 percent on restaurants. This tax is in addition to all other taxes. It does not have a repeal date.
  • Pascagoula Parks and Recreation Tax: 2 percent on restaurants. This tax is in addition to all other taxes. The repeal date is July 1, 2025.
  • Pascagoula Tourism and Economic Development Tax: 3 percent on lodging. This tax is in addition to all other taxes. The repeal date is July 1, 2023.
  • Pearl (West) Restaurant Tax: 2 percent on restaurants. This tax is in addition to all other taxes. It does not have a repeal date.
  • Pearl Tourism: 3 percent on lodging. The repeal date is July 1, 2024.
  • Pearl Tourism: 1 percent on restaurants. The repeal date is July 1, 2024.
  • Petal: 3 percent on lodging and restaurants. This tax is in addition to all other taxes. The repeal date is July 1, 2025.
  • Philadephia: 3 percent on lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Picayune: 2 percent on lodging. This tax is in addition to all other taxes imposed. It does not have a repeal date.
  • Picayune: 1 percent on restaurants. This tax is in addition to all other taxes imposed. It does not have a repeal date.
  • Pontotoc: 2 percent on lodging and restaurants. This tax is in addition to all other taxes imposed. The repeal date is July 1, 2024.
  • Rankin: 2 percent on lodging. This tas is in addition to all other taxes. It does not have a repeal date.
  • Richland Economic and Community Development Tax: 2 percent on restaurants. This tax is in addition to all other taxes. The repeal date is December 31, 2025.
  • Richland Tourism, Parks and Recreation: 3 percent on lodging. The repeal date is July 1, 2022.
  • Ridgeland: 1 percent on restaurants and lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Ripley: 2 percent on lodging and restaurants. This tax is in addition to all other taxes imposed. The repeal date is October 1, 2026.
  • Senatobia: 2 percent on lodging and restaurants. This tax is in addition to all other taxes. The repeal date is July 1, 2025.
  • Southhaven Restaurant Tax: 1 percent on restaurants. The tax is in addition to all other taxes. The repeal date is July 1, 2022.
  • Southaven Tourism and Convention Tax: 1 percent on lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Starkville Economic Development, Tourism and Convention Tax: 2 percent on restaurants. This tax is in addition to all other taxes. The repeal date is June 30, 2022.
  • Starkville Motel-Hotel Tax: 2 percent on lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Starkville Parks and Recreation Tax: 1 percent on lodging and restaurants. This tax is in addition to all other taxes. The repeal date is July 1, 2029.
  • Stone County: 2 percent on restaurants and lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Tishomingo: 2 percent on lodging. This tax is in addition to all other taxes. It does not have a repeal date.
  • Town of Como Tourism Parks and Recreation Tax: $1 per room per night for lodging.
  • Town of Como Tourism Parks and Recreation Tax: 2 percent on restaurants. This tax is in addition to all other taxes imposed. The repeal date is July 1, 2025.
  • Tunica County: 3 percent on lodging and restaurants. This tax is in addition to all other taxes imposed. It does not have a repeal date.
  • Tupelo Convention and Tourism Promotion Tax: 2 percent on lodging and restaurants. This tax is in addition to all other taxes. It does not have a repeal date.
  • Tupelo Water Procurement Facility Tax: 0.25 percent tax on all retail sales and services subject to the state sales tax rate. This tax is in addition to all other taxes.
  • Vaiden: 2 percent on restaurants. The repeal date is July 1, 2022.
  • Vicksburg: 2 percent on lodging and restaurants. This tax is in addition to all other taxes. It does not have a repeal date.
  • Warren County: 1 percent on lodging, restaurants, beer and alcoholic beverages. This tax is in addition to all other taxes. It does not have a repeal date.
  • Washington County Convention and Visitors Tax: 1 percent on lodging and restaurants. This tax is in addition to all other taxes imposed. The repeal date is July 1, 2025.
  • Washington County Hotel Tax: 2 percent on lodging. This tax is in addition to all other taxes. The repeal date is July 1, 2022.
  • Waynesboro: 1 percent on lodging, restaurants, beer, and alcohol. The repeal date is July 1, 2023.
  • West Point Recreation: 1 percent on lodging and restaurants. This tax is in addition to all other taxes. It does not have a repeal date.
  • West Point Tourism: 1 percent on lodging and restaurants. This tax is in addition to all other taxes imposed. The repeal date is July 1, 2024.
  • Winona: 2 percent on restaurants. This tax is in addition to all other taxes imposed. The repeal date is July 1, 2024.
  • Yazoo County: 2 percent on restaurants and lodging. This tax is in addition to all other taxes. It does not have a repeal date.

Vehicle rentals

Mississippi has a motor vehicle rental tax of 6 percent when a business rents a vehicle for 30 or fewer continuous days. Vehicles that exceed 10,000 gross vehicle weight are excluded. This tax is in addition to the 5 percent sales tax on rental vehicles.

Tire disposal fee

All individuals and entities must pay a tire disposal fee of $1 per tire if the rim is less than 24 inches in diameter. The fee is $2 if the rim is 24 inches in diameter or larger.

City utility tax

Mississippi imposes a tax of 2 percent on telephone or communications utilities. The businesses pay the tax on the gross receipts made from customers within the corporate limits of any municipality.

Tobacco tax

Mississippi imposes a tobacco tax as follows:

  • 3.4 cents per cigarette or 86 cents per pack of 20 cigarettes.
  • 15 percent on all other tobacco products on the manufacturer’s list price.

Businesses must also purchase a permit to sell tobacco products. The permit for retailers does not have a fee. Wholesalers must pay an annul permit fee of $100. Vendors and wholesalers can apply online for a permit.

Liquor tax

Mississippi levies a liquor excise tax as follows:

  • Beer: 42.68 cents per gallon
  • Sparkling wine and champagne: $1 per gallon
  • Other wines: 35 cents per gallon
  • Distilled spirits: $2.50 per gallon

Additionally, wholesalers must mark up all alcoholic beverages by 27.5 percent. Finally, beer and alcoholic beverages are subject to sales tax.

Discretionary taxes (Local sales tax rates)

In addition to the state sales and use tax rates, Mississippi has two local taxes at the city level. The county level does not have a local tax.

  • Jackson levies a 1-percent tax on retail sales within its corporate limits.
  • Tupelo levies a 0.25-percent tax on retail sales within its corporate limits.

Registering for and filing Mississippi's taxes

Taxpayers file electronically. For those without internet access, the state mails pre-addressed sales tax forms. Paper filers can send their reports and remit taxes to the Mississippi Department of Revenue, P.O. Box 960, Jackson, MS 39205.

Due dates for Mississippi’s taxes

Sales tax returns are due on the 20th day following a reporting period. For example, monthly filers who collected taxes in January remit taxes and file reports on or before February 20. Quarterly filers file on or before the 20th of April, July, October and December.

Calculating Mississippi's sales and use tax

Add the state sales tax and any local and special taxes to get the total percentage due. Multiply the percentage by the amount of the sale for the amount of tax due. Add the tax due to the sale to get the total the customer owes. Use tax returns are combined with sales tax returns.

Mississippi sales tax holiday for retail sales tax

Mississippi has a sales tax holiday for certain sales of tangible personal property (single items) that are less than $100. The sales tax holiday dates start at 12:01 a.m. on the last Friday in July and end at 12:00 midnight the following Saturday.

Mississippi sales tax exemptions

Some of the common sales tax exemptions include:

  • Prescription drugs
  • Gasoline
  • Livestock and poultry feed
  • Direct sales to the state, counties, and cities
  • Direct sales to the federal government
  • Select nonprofits and public schools.

Remote and marketplace sellers

Marketplace sellers and remote sellers in the state do not charge Mississippi sales tax to out-of-state buyers. Instead, they must charge the resident’s state’s taxes. Visit your customer’s state’s Department of Revenue for information about another state’s taxes.

FAQs

Mississippi imposes a sales tax rate of 7 percent for the sales of goods.

Yes. Check with the state’s Department of Revenue for tax rates, due dates for tax liabilities, and thresholds.

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