Mississippi’s sales tax is 7% on most retail purchases, one of the higher base rates in the country.1Justia. Mississippi Code 27-65-17 – Selling Tangible Personal Property Wholesale and Retail That rate applies to physical merchandise and a handful of services, but several categories get lower rates and some purchases are exempt entirely. The Mississippi Department of Revenue collects the tax and sets the filing rules.2MS.GOV. Department of Revenue
What the 7% Rate Covers
The 7% applies to the gross retail sale price of tangible personal property, meaning almost any physical item you can buy. It also covers electricity, water, natural gas, and steam sold for nonindustrial use, pre-written software, and digital goods.3Mississippi Department of Revenue. Business Tax Frequently Asked Questions
Services aren’t broadly taxed, but a few are. All intrastate, interstate, and international telecommunications services fall under the 7% rate. So do admission charges to entertainment and amusement events, including sports, shows, exhibitions, contests, and recreational activities. Rentals of tangible personal property are treated the same as retail sales, so leased equipment and rented furniture are taxable too.4Mississippi Department of Revenue. Mississippi Sales and Use Taxes
Reduced Rates
Groceries at 5%
As of July 1, 2025, groceries are taxed at 5% rather than 7%. The reduction came through House Bill 1 in the 2025 legislative session and applies to food and drink for human consumption that qualifies for purchase with SNAP benefits.5Mississippi Department of Revenue. Reduced Sales Tax On Groceries Begins July 1 Items that don’t qualify for SNAP, including prepared meals and alcohol, stay at 7%. Mississippi is still among the small group of states that tax groceries at all.6Mississippi Department of Revenue. Sales Tax Rates
Motor Vehicles
Vehicles run on their own schedule:
- Cars and light trucks (10,000 lbs. or less): 5%
- Heavy trucks (over 10,000 lbs.), aircraft, semitrailers, and mobile homes: 3%
- Motorcycles, mopeds, boats, ATVs, and trailers: 7%
The rate is applied at the point of sale.6Mississippi Department of Revenue. Sales Tax Rates
Farm and Manufacturing Equipment
Farm tractors sold to farmers for agricultural purposes are taxed at 1.5%, and that rate also covers parts and repair labor for those tractors. Manufacturing machinery and parts used exclusively and directly in producing goods for sale within Mississippi qualify for the same 1.5% rate, as does logging equipment.1Justia. Mississippi Code 27-65-17 – Selling Tangible Personal Property Wholesale and Retail6Mississippi Department of Revenue. Sales Tax Rates
What’s Exempt
Sections 27-65-101 through 27-65-111 of the state code list purchases that carry no sales tax. The exemptions you’re most likely to run into:
- Prescription drugs and medical supplies. Medications prescribed by a licensed physician, surgeon, dentist, or podiatrist and dispensed by a registered pharmacist are exempt, as are drugs furnished by hospitals and physicians to patients during treatment.7Justia. Mississippi Code 27-65-111 – Exemptions Others
- Sales to the United States government, the State of Mississippi, its departments and institutions, counties, and municipalities.8Mississippi Department of Revenue. Sales Tax Exemptions
- Purchases by public schools, qualifying hospitals, and certain charitable organizations, supported by adequate invoices and records.8Mississippi Department of Revenue. Sales Tax Exemptions
One boundary worth flagging: garage sales and other one-off sales of personal items are generally exempt as isolated or occasional sales, but motor vehicles are specifically excluded. Selling your used car to a neighbor still triggers sales tax.9Legal Information Institute. 35 Miss. Code. R. 4-03-02-101
Use Tax on Out-of-State Purchases
If you buy something from an out-of-state seller who doesn’t charge Mississippi sales tax, you owe use tax directly to the Department of Revenue.10Justia. Mississippi Code 27-67-5 – Tax Levy The use tax rate matches whatever sales tax rate would have applied on the same item bought in-state, which is 7% for most goods. Paid sales tax to another state at an equal or higher rate? You owe nothing more. Paid at a lower rate? You owe the difference.11Mississippi Department of Revenue. Use Tax
For most online shopping, this is already handled at checkout. Since 2018, out-of-state sellers with more than $250,000 in sales into Mississippi over any twelve-month period have had to collect the tax themselves, and marketplaces like Amazon, eBay, and Etsy collect on behalf of the sellers using their platforms.3Mississippi Department of Revenue. Business Tax Frequently Asked Questions12Mississippi Legislature. Mississippi House Bill 379
Local Add-Ons
Counties and cities may impose an additional local sales tax of up to 1% on top of the state rate, but only on items already taxed at 7% or more, and restaurant food and beverages are excluded from that local option.13Mississippi Legislature. Mississippi House Bill 583 – Local Taxation and Tax Extension Authority Act Most jurisdictions haven’t used the authority. The statewide average local add-on is 0.06%, putting the typical combined rate around 7.06%.
Separately, individual cities can be authorized to impose tourism and hospitality taxes on hotels and restaurants, and rates vary. A surcharge on a restaurant or hotel bill that pushes the total past 7% is almost always one of these city-specific tourism levies.14Mississippi Department of Revenue. Petal Tourism, Parks, and Recreation Tax
Sales Tax Holidays
Two weekends each year are tax-free on qualifying purchases. The back-to-school holiday in 2026 runs July 10 through July 12 and covers clothing and footwear priced under $100 per item. The Second Amendment holiday runs August 28 through August 30, 2026, and covers firearms, ammunition, and hunting supplies including archery equipment, cases and accessories, hearing protection, holsters, belts, and slings.
If You’re the Business Collecting the Tax
Any business making taxable sales in Mississippi needs a sales tax permit before collecting tax. Registration is free through the Department of Revenue’s Taxpayer Access Point (TAP), and the state mails a permit and filing instructions after you register.15Mississippi Department of Revenue. Registration Information for Sales and Use Tax Applicants
Filing frequency depends on how much tax you collect in a year:
- Less than $600: file annually
- $600 to $3,599: file quarterly
- More than $3,599: file monthly
You have to file a return for every active period, even one with zero sales.16Mississippi Department of Revenue. Reporting Requirements Late returns and unpaid balances draw penalties and interest that keep accumulating until the account is current.