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Tax-exempt customers Some customers are exempt from paying sales tax under Mississippi law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale.
Applying for a sales tax permit in Mississippi is free, though other business registration fees may apply. Contact each state's individual department of revenue for more about their requirements for registering your business.
Some customers are exempt from paying sales tax under Mississippi law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
Many services are taxable in Mississippi, including the following: Repairs of tangible personal property. Rental or lease of personal property like motor vehicles or equipment. Charges for admission to an amusement, sport, or recreation.
Mississippi Business License Fees However, all Mississippi businesses do need a sales and use tax permit, which you must apply for through the Mississippi Taxpayer Access Point (TAP) online portal. There is no fee to register. Registering for this permit allows you to collect Mississippi's 7% sales tax.
Once you determine that your small business needs a Mississippi state tax ID, the most convenient channel to apply is online. You can complete the online application in a matter of minutes, then wait a few days to a few weeks for the application to fully process.
Churches are not exempt from sales tax; however, churches are exempt from Mississippi sales tax on utilities and use tax on purchases of religious literature. For more information on tax treatment for churches in Mississippi, please see our MDOR Churches Fact Sheet.
You can register online for new Sales and Use Tax accounts. Go to TAP and follow instructions for online registration. A packet containing your permit and information about filing your taxes will be mailed to you. Please allow two weeks to receive this information.
Grocery taxes do not exist in 37 states, but Mississippi has the highest in the U.S. at a rate of 7%. Twelve other states have grocery sales taxes ranging from 0.125% to 6%.
The gain on the sale of a personal item is taxable. You must report the transaction (gain on sale) on Form 8949, Sales and Other Dispositions of Capital AssetsPDF, and Form 1040, U.S. Individual Income Tax Return, Schedule D, Capital Gains and LossesPDF.