State of Mississippi Sales Tax The 2016 Mississippi State Sales Tax

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What is the 2016 Mississippi Sales Tax Rate?

Mississippi Sales Tax Rate

7.00%

2016 Mississippi state sales tax
Exact tax amount may vary for different items

The Mississippi state sales tax rate is 7%, and the average MS sales tax after local surtaxes is 7.07%.

  • Counties and cities can charge an additional local sales tax of up to 0.25%, for a maximum possible combined sales tax of 7.25%
  • Mississippi has 5 special sales tax jurisdictions with local sales taxes in addition to the state sales tax
  • Mississippi has a lower state sales tax than 61.5% of states

Counties and cities in Mississippi are allowed to charge an additional local sales tax on tourism-related businesses and services such as hotels and restaurants.

If you are a Mississippi business owner, you can learn more about how to collect and file your Mississippi sales tax return at the 2016 Mississippi Sales Tax Handbook .

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Mississippi Sales Tax Exemptions

Mississippi does not exempt any types of purchase from the state sales tax. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Unlike many states, Mississippi treats both candy and soda as groceries for sales tax purposes. Other items including gasoline, alcohol, and cigarettes are subject to various Mississippi excise taxes in addition to the sales tax.

Mississippi has two sales tax holidays, during which certain items can be purchased sales-tax free. For more details, see the Mississippi sales tax holiday calendar.

In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. The MS sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Mississippi's sales tax rates for commonly exempted items are as follows:

Groceries: 7% Clothing: 7% Prepared Food: 7% Prescription Drugs: 7% Non-Prescription Drugs: 7%
Mississippi sales tax for a restaurant meal
$100 Restaurant Dinner
Mississippi sales tax for groceries
$100 of groceries
Mississippi sales tax for clothing
$100 in clothes
Mississippi sales tax for general consumer products
$100 of consumer products
$7.00 sales tax
$107.00 total
$7.00 sales tax
$107.00 total
$7.00 sales tax
$107.00 total
$7.00 sales tax
$107.00 total

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Mississippi Sales Tax Exemption Certificate

Unlike a Value Added Tax (VAT), the Mississippi sales tax only applies to end consumers of the product. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Mississippi Sales Tax Exemption Form to buy these goods tax-free.

Companies or individuals who wish to make a qualifying purchase tax-free must have a Mississippi state sales tax exemption certificate, which can be obtained from the Mississippi Department of Revenue . On making an exempt purchase, Exemption Certificate holders may submit a completed Mississippi Sales Tax Exemption Form to the vendor instead of paying sales tax.

Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Mississippi sales tax code) can be downloaded from the Mississippi Department of Revenue here .

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Mississippi Sales Tax Calculator

 Sales Tax Calculator
Purchase Details:
$ in zip code Enter the zip code where the purchase was made for local sales tax

Whenever you make a purchase at a licensed Mississippi retailer, your sales tax will be automatically calculated and added to your bill. To lookup the sales tax due on any purchase, use our Mississippi sales tax calculator.

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Mississippi Use Tax [View Main Article]

If you buy goods and are not charged the Mississippi Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 7% sales tax (less any foreign sales tax paid) for these items yourself as the Mississippi Use Tax.

Your are expected to voluntarily list your liable purchases on a Mississippi Use Tax Return, which should be attached with payment to your Mississippi Income Tax Return. Historically, compliance rates with with the Mississippi Use Tax have been low.

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Mississippi Local Sales Taxes

Mississippi does not allow local jurisdictions like cities or counties to collect a local sales tax. The Mississippi state sales tax of 7% is applicable statewide. You can view the sales tax rates for various cities in Mississippi here.


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