Last Updated on September 14, 2019
Most businesses starting in Mississippi that are selling a product or offering certain services will need to register for a sales tax permit. This is commonly referred to as a seller’s permit, sales tax license, sales tax number or sales tax registration.
Check out the rest of this guide to find out who needs a sales tax permit, what products and services are taxable, how to register for a permit and reporting requirements.
Who needs a sales tax permit in Mississippi?
A business must register for a sales tax permit in Mississippi when:
- A business has “nexus” (significant presence in the state) such as a retail store, office or warehouse where products are produced, stored and/or delivered
- Selling products and taxable services in Mississippi (includes occasionally selling items at craft shows, fairs, seminars, conventions, etc.)
- Employees (including sales representatives or agents) are working in Mississippi
- An online business located in Mississippi is selling taxable products to Mississippi residents
- An out-of-state business selling to Mississippi residents and one of the following:
- Total annual sales of tangible personal property to Mississippi residents is over $250,000; and
- “systematic exploitation of the market in the state” which basically means purposely advertising to Mississippi residents through TV, radio, telemarketing, emails, banner ads, newspapers, etc.
What products and services are taxable in Mississippi?
There are a few exceptions, but almost all physical products are taxable when sold at retail in Mississippi. Common examples include:
- General merchandise like furniture, appliances, and clothing
- Titled or registered items like vehicles
Certain manufacturing and agriculture products and equipment are tax-exempt in addition to some medical equipment, prescriptions and textbooks to students. See the whole list of tax exempt items.
Digital products are taxable in Mississippi.
Most services aren’t taxable in Mississippi, however there are a few exceptions, some of which include:
- Repairs of tangible personal property
- Rental or lease of personal property like vehicles or equipment
- Charges for admission to an amusement, sport or recreation
- Providing taxable services like pest control services, plumbing, electrical work, dry cleaning, etc
- Rental of accommodations in hotels, motels and campgrounds
See the full list of taxable services.
How to register for a sales tax permit in Mississippi
A sales tax permit can be obtained by registering through the Department of Revenue’s Taxpayer Access Point.
Information needed to register includes:
- Type of business entity (Sole Proprietorship, Partnership, Corporation, LLC)
- Federal Employer Identification Number (FEIN), or SSN if a sole proprietorship with no employees
- Legal Business name
- Trade Name or DBA
- Business and mailing address
- Names, addresses and SSN of owners/officers/members
Remote sellers who don’t have a permanent location in the state will be required to post either a sales tax bond or approved surety tax cash bond.
How much does a sales tax permit cost in Mississippi?
There is no cost for a sales tax permit in Mississippi.
How long does it take to get a Mississippi sales tax permit?
Expect up to 2 weeks to receive your sales tax permit and sales tax number.
Do you have to renew your Mississippi sales tax permit?
The sales tax permit is a one-time registration and no renewals are needed. Be mindful that if any information about the business changes such as the mailing address, additional locations or change in ownership, those changes need to be updated with the Department of Revenue.
Sales tax reporting
How is sales tax collected?
When a business makes a sale of a taxable product or service, the business charges the appropriate sales tax rate to the customer. This tax is collected by the business who then sends it to the Mississippi Department of Revenue.
How much sales tax is charged?
The sales tax rate that is charged varies depending on the address of the business if the purchase is made in the store. When shipping in-state, the sales tax is based on the address of the purchaser.
In addition to the statewide tax, there are additional sales taxes that may be added by cities and municipalities. To find sales tax rates, see the sales tax rates from the Mississippi Department of Revenue.
When are Mississippi sales tax returns due?
The Department of Revenue will determine a filing frequency based on the expected volume of sales, which will be monthly, quarterly or annually. Generally, a business collecting over $300 each month in sales taxes will file monthly.
Filings are due the 20th day of the month following the reporting period, unless the 20th falls on a weekend or federal holiday, in which case would move to the next business day.
Even if the business had no sales during the reporting period, a filing is still required indicating no sales occurred.
Sales tax on purchases for resale
A business is able to purchase items to resell without paying state sales tax. The tax liability is passed from the wholesaler or distributor to the retailer who will then charge sales tax to the end user of the item.
Wholesalers and distributors will require a sales tax number, and in some cases require the reseller to submit a Mississippi Resale Certificate to document the items being purchased are for resale.
If you have questions about the sales tax permit, the Mississippi Department of Revenue has a Sales and Use Tax FAQ or they can be contacted by calling (601)923-7700.
Alternatively, a local district office can be contacted:
500 Clinton Center Drive Clinton, MS 39056
Serves the Central Mississippi Counties: Hinds, Madison, Rankin, Warren, Yazoo, Sharkey and Issaquena
200 E. Washington St., Suite 125
Greenwood, MS 38930
Serves the Delta and North Central Mississippi Counties: Attala, Bolivar, Carroll, Choctaw, Grenada, Holmes, Humphreys, Leflore, Montgomery, Sunflower, Tallahatchie, Washington, Webster and Yazoo
GULF COAST DISTRICT
1141 Bayview Ave., Ste. 400
Biloxi, MS 39530-1601
Serves the Coastal Counties: Hancock, Harrison, and Jackson
17 JM Tatum Industrial Dr, Ste. 2
Hattiesburg, MS 39401
Serves the Pine Belt Counties: Covington, Forrest, George, Greene, Jones, Lamar, Marion, Pearl River, Perry, and Stone
2631 McIngvale Road, Suite 116
Hernando, MS 38632
Serves the North West Mississippi Counties: Benton, Coahoma, Desoto, Lafayette, Marshall, Panola, Quitman, Tate, Tunica, Yalobusha
900A Highway 19
South Meridian, MS 39301
Serves the East Central Mississippi Counties: Clarke, Jasper, Kemper, Lauderdale, Leake, Neshoba, Newton, Noxubee, Scott, Smith, Wayne and Winston
1935 McCullough Blvd.
Tupelo, MS 38801
Serves the North East Mississippi Counties: Alcorn, Calhoun, Chickasaw, Clay, Itawamba, Lee, Lowndes, Monroe, Oktibbeha, Pontotoc, Prentiss, Tippah, Tishomingo, and Union