Key takeaways
- Mississippi sales tax rates: The state rate is 7%, with limited local taxes bringing combined rates to about 8%. Groceries are taxed at the full 7% rate.
- Economic nexus: Remote sellers must register once Mississippi sales exceed $250,000 in gross revenue during the previous 12 months. There is no transaction-count threshold.
- Filing & penalties: Returns are due on the 20th of the month after the period, with a 2% timely-filing discount capped at $50. Late filing and late payment each cost 10% of the tax due, plus 1% per month interest.
Mississippi sales tax key facts (2026)
| Item | Mississippi |
|---|---|
| Statewide rate | 7% |
| Local taxes | Limited (combined up to ~8%) |
| Economic nexus threshold | $250,000 (no transaction count) |
| Sourcing | Origin-based |
Collect and file Mississippi sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
No.
| Item | Mississippi |
|---|---|
| Groceries | Taxable at 7% |
| Timely-filing discount | 2% (max $50) |
| Return due date | 20th of the month after the period |
| Governing agency | Mississippi Department of Revenue |
What is the sales tax rate in Mississippi?
Mississippi’s statewide sales and use tax rate is 7% — one of the highest base rates in the country. Local sales taxes are limited; a few cities add small amounts (for example, Jackson’s 1% infrastructure tax), bringing combined rates to about 8% at most. Many cities and counties also impose tourism and economic-development taxes on hotels, restaurants, and bars.
Some items (like farm tractors, farm implements, and manufacturing machinery) have their own statewide reduced rates.
Do you have sales tax nexus in Mississippi?
Nexus is the connection that obligates your business to collect and remit Mississippi sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in Mississippi, such as:
- Owning or leasing business property in Mississippi
- Employees or agents who service customers or solicit sales in the state
- Storing inventory in Mississippi
Economic nexus
Out-of-state sellers establish economic nexus once sales into Mississippi exceed $250,000 in gross revenue during the previous 12 months. Mississippi’s threshold is higher than most states’, and there is no transaction-count test.
What is taxable in Mississippi?
Tangible personal property is generally taxable, along with some services. Exemptions include prescription medicine, medical devices, and certain manufacturing inputs.
Is SaaS taxable in Mississippi?
No. SaaS is generally not subject to Mississippi sales tax. (Prewritten software delivered or used in the state can be taxable, so confirm the treatment for your specific product.)
How is food taxed in Mississippi?
Mississippi is one of the few states that taxes groceries at the full rate — both grocery items and prepared food are taxed at 7%.
How to register for a Mississippi sales tax permit
Obtain a sales tax permit (one per business location) before collecting. Taxually can register for you, or you can apply online through the Mississippi Taxpayer Access Point (TAP). There’s no fee, and the permit doesn’t expire as long as you operate at the same location.
Have ready: business name and mailing address; SSN or ITIN (sole proprietors); and Secretary of State business ID and FEIN (corporations, partnerships, or LLCs).
How to collect sales tax in Mississippi
Mississippi is origin-based for in-state sellers — you collect at the rate where your business is located (by point of origin if you have multiple locations). Remote sellers with nexus collect use tax at the same 7% rate.
Filing and paying Mississippi sales tax
Filing frequency is set by average monthly liability: monthly ($300 or more), quarterly ($50–$300), or annual ($0–$50). Returns are due the 20th of the month following the period (next business day if a weekend or holiday). Mississippi offers a 2% timely-filing discount, capped at $50.
File and pay online through Mississippi TAP. Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Late filing: 10% of the tax due.
- Late payment: 10% of the tax due.
- Interest of 1% per month on any unpaid tax.
Frequently asked questions
What is the sales tax rate in Mississippi in 2026?
The state rate is 7%. Limited local taxes can bring the combined rate to about 8%.
What is the economic nexus threshold for Mississippi?
$250,000 in gross revenue from Mississippi sales during the previous 12 months. There is no transaction-count threshold.
Is SaaS taxable in Mississippi?
Generally no. SaaS is not subject to Mississippi sales tax, though prewritten software delivered or used in-state can be taxable.
Are groceries taxed in Mississippi?
Yes. Mississippi taxes both groceries and prepared food at the full 7% rate.
When are Mississippi sales tax returns due?
The 20th of the month following your reporting period.
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