Sales Tax Rules
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.
SaaS Tax Details
SaaS (remotely accessed) is generally not taxable.
Grocery Details
Groceries are taxed at the full 7% rate.
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
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.