Mississippi is a state based on origin-based sales tax. So if you live in Mississippi, collecting sales tax is pretty easy. Collect sales tax at your company`s tax rate. Services in Mississippi are generally not taxable. However, if the service you provide involves the creation or manufacture of a product or the installation or repair of a product you sell, you may have to face sales tax on the products. If you reside outside of Mississippi, but you have a sales tax connection and need to collect sales tax in Mississippi, you are a “distance seller” and only need to charge “use tax.” The use tax is very similar to the sales tax, except that it is collected by distance sellers. Mississippi`s use tax rate is 7%. The state sales tax rate is also 7%. Our free online guide covers several aspects of managing Mississippi sales tax compliance, including company registration, sales tax collection, sales tax filing, and government obligations. To get the most accurate VAT rate, use an exact address.
Calculating the amount of sales tax you need to remit to the state of Mississippi is easy with TaxJar`s Mississippi Sales Tax Report. When you file and pay Mississippi sales tax depends on two things: the filing frequency assigned to you and your state`s due date. Our team of 100+ researchers keeps our database up to date with the latest tax rates and regulations for each jurisdiction. Business owners can register online on the Mississippi “TAP” website. Mississippi encourages online sellers to register online and file sales tax. If you have more than one location in Mississippi, base the sales tax rate you charge on the origin of your sale. You can click here to read exactly what the Mississippi Department of Revenue has to say about what constitutes the Mississippi sales tax link. If you`re making sales to customers in Mississippi, you need to make sure you`re familiar with state sales tax regulations to comply. This means you need to determine whether you need to collect and remit sales tax based on your small business relationship status and whether what you`re selling is taxable under Mississippi law.
Each state`s tax code is a multifaceted system with many moving parts, and Mississippi is no exception. The first step to understanding Mississippi`s tax laws is to know the basics. How does Mississippi collect tax revenue? Click on the tabs below to learn more! You can also explore our state tax maps, from our annual publication, Facts & Figures: How Does Your State Compare? As of Dec. 1, 2017, Mississippi considers providers who have earned more than $250,000 in the state in the past 12 months to be economically connected. This means that the state considers these sellers to be required to collect sales tax from state buyers. You can find the Mississippi Economic Ties guide for sellers here. The Mississippi State Sales Tax Rate is 7%. Several cities levy a tax, so the effective rate in Tupelo is 7.25% and the effective rate in Jackson, Pearl, Clinton, Ridgeland and Byram is 8%.
The state`s base rate is the only one in effect in the rest of the state, though other cities have the option to add their local sales taxes at some point in the future if they wish. Mississippi does not collect county taxes. Before you can collect sales tax from your Mississippi customers, you must register with the state. Registration can be done online or by mail, and it can take up to two weeks for you to receive your authorization by mail. You`re not allowed to do business in the state until you get actual approval, so you`ll need to register a few weeks before planning a sale in Mississippi. Select Mississippi City from the list of most popular cities below to see the current VAT rate. Mississippi has two sales tax holidays during which certain items can be purchased without VAT. Anyone who makes sales to Mississippi customers must participate in these tax breaks, including out-of-state sellers who ship within the state. You can check your local VAT rate using TaxJar`s VAT calculator. For example, Jackson, Mississippi has a local sales tax rate of 1%, which, along with the state tax rate of 7%, translates to an overall sales tax rate of 8%. *Due to the different local VAT rates, we strongly recommend using our calculator below to get the most accurate rates. Businesses or individuals wishing to make a tax-free qualifying purchase must have a Mississippi State Sales Tax Exemption Certificate, available from the Mississippi Department of Revenue.
State Rate: 7% Maximum Combined Rate: 8%Supply: OriginTax Vacation: Back to School, Second AmendmentAdministrative Body: Mississippi Department of Revenue Combined with state sales tax, Mississippi`s highest sales tax rate is 8% in the cities of Jackson, Pearl, Clinton, Ridgeland, and Byram (and two other cities). Mississippi considers a seller to be a physical link if you have any of the following in the state: Sales tax exemption forms (as well as sales tax identification requests, sales tax returns, and the full Mississippi sales tax code) can be downloaded here from the Mississippi Department of Revenue. Certain sales of goods that would otherwise be taxable are exempt in certain circumstances. For example, a sale may be exempt from tangible personal property if: If you`re ready to learn more about how TaxTools can help your small business grow while reducing the burden of VAT compliance issues, click here to sign up for a free trial today. Mississippi does not allow local jurisdictions such as cities or counties to charge local sales tax. The Mississippi state sales tax of 7% applies nationwide. You can check out sales tax rates for different Mississippi cities here. When it`s time to file sales tax in Mississippi, you need to do three things: Mississippi has a 7% sales tax and allows local governments to charge a local sales tax of up to 1%. There are a total of 143 local tax jurisdictions across the state, which levy an average local tax of 0.065%. Click here for a larger VAT card or here for a VAT table. Whether you`re selling only to Mississippi customers or shipping your goods to multiple states, you need to make sure you can keep up with the regulations and requirements of the state sales tax law. This means making sure you charge your customers the right rate and only for taxable items or services, and it also means filing your taxes and submitting your payments on time.
The rates shown are current for the date and time you provided the address, but may change at any time with the new tax legislation. In the map of Mississippi above, the 82 counties of Mississippi are colored according to the maximum sales tax rate that occurs in that county. Counties marked with one in the list below have a district-level sales tax. You can also download a Mississippi database at the sales tax rate. A sales tax table can be used to quickly determine the amount of tax due on the purchase of a particular price. Our VAT table generator can be used to create a custom VAT table that you can print for easy reference. Cities or towns marked with a have a local sales tax at the city level, possibly in addition to additional local government sales taxes.