Mississippi Sales Tax and Use Tax
What is the Mississippi sales tax?
Taxes in Mississippi are origin-based 1, meaning the Mississippi sales tax rate is based, or determined from, the location where a sale originates
To see a full breakout of Mississippi sales tax rates by state, county, city and special district, use our easy Mississippi sales tax calculator. After putting in any ZIP code, you can enter a retail price to calculate Mississippi sales tax totals.
What is the Mississippi use tax?
The Mississippi state use tax rate is the same as the state, county, city and special district rates.
If you reside in MS, use tax is due to the state on any and all transactions where sales tax has not been paid, even out-of-state internet sales.
Who has to pay Mississippi sales tax or use tax?
In general, a business must collect and remit all applicable Mississippi sales taxes if that business has nexus, a physical presence such as a brick-and-mortar location, within a given state. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials usually establishes nexus as well.
Mississippi says that an out-of-state seller is required to collect tax if they can be defined as a "seller doing business". Mississippi does not currently have additional laws establishing nexus for other reasons such as out-of-state businesses using in-state affiliates, advertisers or vendors, or businesses that make internet sales or mail catalogs.
If you are not sure if you have established nexus in Mississippi, you can usually get free help by contacting the Mississippi State Tax Commission. Click here for an updated listing of direct phone numbers. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in Mississippi. Click here for listing of recommended resources.
Special rules applying to Mississippi sales tax and use taxes
- Shipping is not taxable.
- Finance charges are subject to sales tax unless extended by a third-party collector.
- Clothing is taxable, except for certain exemptions.
- Mississippi Sales tax holidays are held for some back to school items .
Since Mississippi legislators can vote to change the Mississippi sales tax and use tax rates at any time, it is very difficult for individuals to keep track of the changes. The population of MS state is also rapidly changing, which can cause frequent updates to the ZIP codes and local municipality names and complicates the job of keeping track of Mississippi sales tax jurisdictions.