As an e-commerce seller, you will need to collect sales tax in Mississippi if you have:
(1) total sales exceeding $250,000 into Mississippi over the prior 12-month period (economic nexus), or
(2) Physical presence in Mississippi (physical nexus).
Below, we will highlight some of the basic provisions of Mississippi sales tax law.
What is the tax rate range for Mississippi?
State: Mississippi’s general sales tax rate is 7% which applies to most products and some services. Different tax rates apply to some items such as farm machinery, certain automobiles and certain manufacturing equipment.
Local: There are two cities in Mississippi that levy a local sales tax. Tupelo has a tax of .25% and Jackson has a tax of 1% .
Do you have physical or economic nexus in Mississippi?
Physical nexus. Certain business activities create physical nexus in Mississippi. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to Mississippi. Examples of business activities that can create physical nexus in Mississippi include:
- Having an office, a distribution house, a salesroom or house, a warehouse, or any other place of business
- Owning personal property located in Mississippi used by another person
- Installing personal property in Mississippi.
- Selling or taking orders for any tangible personal property, either personally, by mail or through an employee representative, salesman, commission agent, canvasser, solicitor or independent contractor or by any other means from within the state.
Economic nexus. Mississippi recognizes economic nexus for any vendor with more than $250,000 totals sales into the state over the prior 12-month period. Once you have economic nexus established, you will be obligated to collect sales tax from buyers in the state.
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Certain services related to the purchase or installation of taxable items.
- Other identified services (e.g., admissions)
- Leases and rentals of tangible personal property
- Software as a Service (SaaS)
What are examples of sales of nontaxable/exempt items?
- Prescription medicine
- Medical devices
- Items used in manufacturing
Are there any sales tax holidays?
Mississippi recognizes an annual sales tax holiday in July for clothing and footwear up to $100. Sales Tax Holiday
Mississippi also has a sales tax holiday for certain firearms and firearm related products. Second Amendment Sales Tax Holiday
Is Mississippi a member of the SST (Streamlined Sales Tax)?
Currently, Mississippi is not a full or associate member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in this state?
You can register online at: Mississippi Department of Revenue's TAP Site
For more information on Mississippi rates, see: Mississippi Sales Tax Rates Page