Mississippi sales tax rates 2026: Calculator, nexus, and due dates

Mississippi sales tax rates by city and county

Mississippi’s 7% state rate applies to most retail sales statewide. Unlike most states, Mississippi has almost no local sales taxes. According to the Mississippi Department of Revenue, only two cities levy a local sales tax:

• Jackson levies an additional 1% infrastructure tax on certain retail sales within city limits (combined rate of up to 8% for applicable sales).
• Tupelo levies an additional 0.25% on all retail sales within city limits (combined rate of 7.25%).

All other cities and counties in Mississippi charge only the 7% state rate. Numerous municipalities levy separate Tourism and Economic Development taxes on food, beverages, and lodging — but these are special-purpose taxes, not general sales taxes.

Mississippi’s sourcing rules are governed by state statute. Remote sellers delivering into Mississippi collect based on the delivery address. All returns are filed with the Mississippi Department of Revenue.

Major Mississippi cities and their 2026 combined general sales tax rates:

*Jackson’s 1% infrastructure tax applies to certain retail sales only. Some sales categories are excluded — see MS DOR Notice 72-14-2 for details.

Mississippi sales tax calculator

Can’t find your city? Use the TaxCloud Sales Tax Calculator to look up any Mississippi ZIP code.

The rates in this calculator are powered by the same real-time engine used within our platform. Mississippi’s rate structure is simple for most addresses — 7% statewide with only two cities adding local taxes. To move from estimates to automated, rooftop-level accuracy, start your 30-day free trial and see the engine in action.

Mississippi nexus thresholds

Remote sellers and businesses with a physical presence in Mississippi are subject to nexus laws. You are required to register and collect sales tax if you trigger “nexus” through a physical presence in the state or by exceeding the economic threshold as a remote seller.

Mississippi economic nexus

You will trigger Mississippi economic nexus if you exceed the following threshold in any 12-month period:

• Sales threshold: $250,000 in gross sales into the state of Mississippi.
• Transaction threshold: None. Mississippi uses a revenue-only standard.

Mississippi’s $250,000 threshold is higher than the $100,000 standard used by most states. Once the threshold is exceeded, the seller must register with the Mississippi Department of Revenue to collect and remit tax.

Mississippi physical nexus

You have physical nexus (and must register from dollar one) if you have:

• Inventory: Storing goods in a warehouse, 3PL, or Amazon FBA fulfillment center in Mississippi.
• Personnel: Employees, agents, or representatives who service customers or solicit orders in Mississippi.
• Property: Owning business property located in Mississippi.

Mississippi sales tax permit registration

Once you trigger nexus, you must register with the Mississippi Department of Revenue before you can legally collect sales tax. A separate permit is required for each business location.

Operating without a permit after crossing the threshold exposes you to back taxes, penalties, and interest from the date nexus was established — not the date you registered.

1. Gather your information. You’ll need your FEIN, business structure details, estimated sales, and bank account information.
2. Submit your application. Register online through the Mississippi Taxpayer Access Point (TAP). There is no fee for obtaining a sales tax permit. Allow two weeks to receive your permit and information packet.
3. Note your effective date. Mississippi expects registration promptly upon exceeding the $250,000 threshold. If there’s a gap between crossing the threshold and registering, you may owe back taxes for that period.

If you have questions about your Mississippi registration or compliance history, TaxCloud’s U.S.-based support team typically responds within 2 hours and can review your setup directly.

Mississippi sales tax calculation rules

Mississippi’s calculation rules are relatively simple — the 7% state rate applies to most retail sales statewide, with reduced rates for specific categories and only two cities imposing local add-ons. Mississippi taxes a broader range of services than most states.

What is taxable in Mississippi?

Taxability in Mississippi is determined by how a product is classified under state law. Below is a high-level summary of how major categories are generally treated for 2026:

• Tangible personal property: Most physical goods are subject to the 7% state sales tax unless a specific exemption or reduced rate applies. Delivery charges follow the taxability of the item being delivered — if the item is taxable, delivery is taxable. Mississippi includes installation charges and delivery charges in the definition of gross proceeds of sales.
• SaaS, software, and digital products: Mississippi has a unique location-based rule for SaaS. SaaS and software services are taxable if the software is hosted on servers located in Mississippi. SaaS hosted on servers outside Mississippi and accessed remotely is exempt (per Senate Bill 2449, effective July 1, 2023). Pre-written software is taxable as tangible personal property regardless of delivery method. Digital and electronic goods are taxable.
• Food & groceries: Mississippi taxes groceries (food eligible for SNAP benefits) at a reduced rate of 5% as of July 1, 2025. Prepared food, restaurant meals, and food sold in bars are taxable at the standard 7% rate.
• Clothing: Clothing and footwear are taxable at the standard 7% rate, except during the annual sales tax holiday when clothing under $100 is exempt.

What is tax exempt in Mississippi?

Below is a high-level summary of items that are generally tax-exempt in Mississippi:

• Essential exemptions: Mississippi provides specific exemptions for prescription drugs and medicines, residential electricity and fuel, residential water, and food products sold at certified Mississippi farmers’ markets.
• Additional exemptions: Sales for resale (with a valid sales tax permit), sales to the U.S. government and State of Mississippi and its departments, manufacturing raw materials, certain agricultural supplies, and purchases by qualifying religious, charitable, and educational organizations.

Mississippi sales tax return due dates and filing frequency

In Mississippi, sales tax returns are due on the 20th of the month following the reporting period. The Mississippi Department of Revenue assigns filing frequency based on your sales volume.

Critical 2026 compliance notes:

• Grocery rate reduced to 5% (July 1, 2025): Food and drink eligible for SNAP benefits is now taxed at 5% instead of 7%. Sellers must correctly apply the reduced rate to qualifying grocery items and the standard 7% rate to all other tangible personal property.
• SaaS hosting location matters: Mississippi taxes SaaS only if the software is hosted on servers located in Mississippi. Sellers must maintain documentation of where their software is hosted. If hosted out-of-state and accessed remotely, the sale is exempt.
• $250,000 threshold — higher than most states: Mississippi’s economic nexus threshold is $250,000 in gross sales over any 12-month period, with no transaction threshold. Smaller sellers may not trigger nexus in Mississippi even if they do in other states.
• Broad service taxability: Mississippi taxes a wider range of services than most states, including pest control, plumbing, electrical work, HVAC, dry cleaning, computer software services, and parking lots. Sellers of services should verify taxability with the Mississippi Department of Revenue.
• Zero-return requirement: If you are registered but had $0 in sales this period, you must still file.
• Weekend/holiday rule: If the 20th falls on a weekend or state holiday, your return is due the next business day.
• Penalty and interest: Late filing or payment results in a penalty of 10% of the tax due, plus interest at 0.5% per month from the date the tax was due.
• Vendor discount available: Mississippi allows a 2% timely filing discount for sellers who comply fully with all applicable statutes and file and pay on time. The discount is capped at $50 per reporting period and $600 per calendar year. No discount is allowed on tax for utility services, wholesale beer and alcoholic beverages, full-service vending machine food and drink, or contractor’s tax. Late or underpaid returns forfeit the discount for all locations.

Mississippi and the Streamlined Sales Tax (SST) program

Mississippi is not a member of the Streamlined Sales Tax (SST) program.

However, because TaxCloud is a Certified Service Provider of the SST Program, we can save your business time and money on state registration and filing costs in 24 SST-member states — and handle your Mississippi filing.

See how our SST status can eliminate your filing fees.

The latest Mississippi sales tax changes

We track Mississippi’s shifting sales tax landscape so you don’t have to.

Here are the most relevant updates for 2026:

• Grocery tax reduced to 5% (July 1, 2025): HB 1 reduced the sales tax rate on groceries (food and drink eligible for SNAP benefits) from 7% to 5%. This applies statewide and affects all sellers of qualifying food items. Local tourism/economic development taxes on food and beverages may still apply in certain municipalities.
• Franchise tax phaseout continues (2026): Mississippi is phasing out its corporate franchise tax — the rate dropped to $0.50 per $1,000 for tax years beginning January 1, 2026, with full repeal effective January 1, 2028. While this does not directly affect sales tax, it is part of the broader tax reform impacting businesses operating in Mississippi.