The Mississippi sales tax rate is 7% statewide. Counties don’t levy their own sales taxes, and only two Mississippi cities, Jackson (8% combined rate) and Tupelo (7.25% combined rate), charge an additional tax on top of the state rate. Due to the state’s tiered sales tax system, a number of product categories are taxed at reduced rates.

Below, we’ll explore sales tax rates across product types, how businesses establish nexus and register to collect taxes in the state, and how to calculate the correct rate for any Mississippi transaction.

Highlights

• Mississippi’s 7% base rate applies to most retail sales, but groceries, vehicles, and manufacturing equipment all qualify for reduced rates.

• Only two cities in the state charge local sales tax, which makes Mississippi one of the simplest states in the country for multilocation rate compliance.

• Remote sellers must register and collect sales taxes once they exceed the threshold for economic nexus in Mississippi sales over any rolling 12-month period.

What is the Mississippi sales tax rate?

Mississippi’s base sales tax rate is 7%. This applies to most products and services, with some exceptions. Depending on where the sale happens, the combined rate can go higher.

How does Mississippi’s sales tax rate work for businesses?

If your business has physical or economic nexus in Mississippi, it must collect sales tax at the point of sale and remit it to the Mississippi Department of Revenue. Below are the requirements for both types of nexus.

Physical nexus

If you have an office, a warehouse, a retail location, stored inventory, or employees working in Mississippi, you have physical nexus in the state and must register with the Mississippi Department of Revenue before you make your first taxable sale.

Economic nexus

Once you exceed $250,000 in gross sales into Mississippi over any rolling 12-month period, you have economic nexus in the state and must collect and remit sales tax. Nontaxable and exempt sales count toward the threshold, even though no tax is owed on them. Sales through marketplace facilitators don’t count because those platforms handle sales tax on your behalf.

This is an unusually high amount for a nexus threshold: many states use a $100,000 threshold. Mississippi’s higher threshold gives smaller remote sellers more runway before compliance obligations begin.

What are the local sales tax rates in Mississippi (MS)?

There are very few local sales taxes in Mississippi. Only two cities, Jackson and Tupelo, collect their own sales taxes.

2026 Mississippi state sales taxes

What are Mississippi’s sales tax rates by city?

The cities of Jackson and Tupelo both charge a local sales tax on top of the 7% state rate. Local taxes apply to the same goods and services as the state tax. In every other city, from Gulfport to Oxford to Vicksburg, the overall sales tax rate is equal to the state’s flat 7% rate.

Here’s a closer look at some of Mississippi’s major cities and how taxes are applied.

What are Mississippi’s sales tax rates by county?

Mississippi has 82 counties and none of them levy their own sales tax. Here’s a look at some of the most populous counties in the state—all of which use the statewide sales tax rate of 7%.

Does Mississippi’s sales tax rate apply to all goods and services?

Mississippi uses a tiered sales tax rate structure based on what’s being sold. Certain product and service categories are taxed at reduced rates, and others are exempted from tax. Here are some examples.

Reduced rates

• Groceries, specifically Supplemental Nutrition Assistance Program (SNAP)-eligible items: 5%

• Automobiles and light trucks under 10,000 lbs.: 5%

• Sales or rentals of certain equipment related to land resources: 4.5%

• Admissions to publicly owned enclosed coliseums and auditoriums: 3%

• Farm tractors, logging equipment, and farm implements: 1.5%

• Manufacturing machinery and equipment: 1.5%

• Electric power association purchases: 1%

Exempt

• Wholesale purchases of alcoholic beverages

• Wholesale purchases of beer

• Prescription drugs

• Certain agricultural production inputs

• Sales to federal and state government entities

How do you calculate Mississippi’s sales tax rate?

To calculate sales tax rates in Mississippi, multiply the purchase price by the applicable combined rate. Mississippi’s limited local tax variation means you only need to know three possible rates (7%, 7.25% in Tupelo, and 8% in Jackson) for most taxable sales.

Here are some examples:

A $150 standard rate item purchased anywhere outside Jackson and Tupelo (7% base state sales tax rate):

$150 × 0.07 = $10.50 Tax

The tax is then added to the purchase amount to get the total:

$150 + $10.50 = $160.50 Total

That same $150 item shipped to a Jackson address (8% combined sales tax rate):

$150 × 0.08 = $12.00 Tax

$150 + $12.00 = $162.00 Total

That same $150 item shipped to a Tupelo address (7.25% combined sales tax rate):

$150 × 0.0725 = $10.88 Tax

$150 + $10.88 = $160.88 Total

You can use Stripe’s sales tax calculator to find the right sales tax rate with address-level accuracy.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, value-added tax (VAT), and goods and services tax (GST) on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.