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Mississippi

Sales Tax Rules

7%
State Rate
8%
Max Combined
Exempt
SaaS
$250k
Nexus Threshold

Mississippi imposes a state sales tax rate of 7%, with a maximum combined rate (state plus local) of 8% when local taxes are added. Economic nexus is triggered at $250,000 in sales — meaning out-of-state businesses that exceed this threshold must collect and remit Mississippi sales tax. SaaS and digital software products are generally exempt from sales tax in Mississippi. Groceries are subject to sales tax in Mississippi.

Full Tax Details

State Sales Tax Rate7%
Max Combined Rate8%
Economic Nexus (Sales)$250,000
Economic Nexus (Transactions)N/A
SaaS TaxableNo
Digital Goods TaxableYes
Groceries ExemptNo
Clothing ExemptNo
Filing FrequencyMonthly or Quarterly
Online FilingAvailable

SaaS Tax Details

SaaS (remotely accessed) is generally not taxable.

Grocery Details

Groceries are taxed at the full 7% rate.

How Mississippi Compares to Neighboring States

StateState RateMax CombinedSaaSGroceries
Mississippi ★7%8%ExemptTaxable
Alabama4%11%ExemptTaxable
Arkansas6.5%11.625%ExemptExempt
Louisiana5%11.45%TaxableExempt
Tennessee7%9.75%TaxableTaxable

Frequently Asked Questions — Mississippi Sales Tax

What is the sales tax rate in Mississippi?

Mississippi's state sales tax rate is 7%. When local taxes are added, the maximum combined rate can reach 8%. The actual rate you pay depends on the county and city where the purchase is made.

What is the economic nexus threshold in Mississippi?

Mississippi requires out-of-state businesses to collect sales tax once they exceed $250,000 in sales in a calendar year. Once nexus is established, the business must register, collect, and remit Mississippi sales tax.

Is SaaS taxable in Mississippi?

No. SaaS products are generally exempt from sales tax in Mississippi. SaaS (remotely accessed) is generally not taxable.

Are groceries taxed in Mississippi?

Groceries are subject to sales tax in Mississippi. Groceries are taxed at the full 7% rate.

Are digital goods taxable in Mississippi?

Yes. Mississippi taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Mississippi customers should collect sales tax.

Are clothing items exempt from sales tax in Mississippi?

Clothing is subject to sales tax in Mississippi at the standard state rate.

How often do I need to file sales tax in Mississippi?

Mississippi requires sales tax filing on a Monthly or Quarterly. Online filing is available through the official Department of Revenue portal.

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Official Source

Mississippi Department of Revenue

View Official Site →

Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.