Sales Tax and Reverse Sales Tax Calculator Mississippi

MISSISSIPPI [Multidirectional Calculator]
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  • 7%
  • 7.25%
  • 8%
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  • Amount Before Tax ${{amountBeforeTax}}
  • Sales Tax Rate {{SalesTaxRate}}%
  • Amount Of Taxes ${{AmountOfTaxes}}
  • Amount After Taxes ${{AmountAfterTaxes}}



Mississippi - MS Sales Tax Calculator: User Guide

Mississippi, a soulful state in the Deep Southern region of the United States, having Mississippi River to its west, the Gulf of Mexico to the south, and Alabama to its east. The state is rich with amazing history & culture, delicious food, comforting soul music, and Southern hospitality. Additionally, it also has a rising economy, with considerable business and job opportunities to attract plenty of people to settle here.

So, if you are one of them planning to move in Mississippi, to start, expand, or relocate your business, then you should be aware of the Mississippi Sales Tax. You must know about the sales tax rates, facts, and how to calculate sales tax, for which our experts have created a comprehensive guide along with a sales tax calculator.

So let's explore!

Mississippi Sales Tax Facts:

  • The general sales tax rate levied on the state level in Mississippi is 7%, which remains the same everywhere in the state. However, some cities and counties collect local sales tax, which can go up to 0.25%.
  • Jackson City, also the capital of Mississippi, levies its own additional sales tax of 1%.
  • 25% of an additional tax of 0.25% is levied by Tupelo City on all retail sales and services provided from within the city's corporate limits.
  • Services taxable in MS includes bowling fees, electricians, hotels and motels, parking garages and lots, installation or repair of air conditioning units, car-washing, furniture repair, laundering and dry cleaning, television service, and woodworking.
  • Tourism-related businesses and services such as hotels and restaurants may also be charged with a local sales tax by cities and counties.
  • Sale of cars, boats, and real estate sales may also be subjected to Mississippi Sales Tax.
  • 5% of states have higher sales tax than Mississippi.
  • Prescription Drugs are exempted from sales tax in Mississippi. Unfortunately, no other items are exempted.
  • MS State has two sales tax holidays where buyers can buy products related to clothing and footwear without paying sales tax from July 26th to July 27th of every year. The other holiday occurs in September each year with the name "Mississippi Second Amendment Weekend," where firearms, ammunition, and hunting supplies are exempted from sales tax.
  • Individuals and companies can use a Mississippi Sales Tax Exemption Form to buy goods for resale, improvement, or as raw materials without paying sales tax in MS.
  • Purchases made from out-of-state or online sellers, where a lower (or no) sales tax was collected on the purchase, are subjected to Mississippi Use Tax.
  • Jackson, MS, is the only city that levies the highest combined sales tax rate of 8.00% in Mississippi. Whereas, the highest in other cities in MS is 7.25%.


How to calculate Sales Tax in Mississippi?

Businesses and Sellers who have Nexus are required to pay Sales tax to Mississippi (state and local) on the sales of tangible personal property (under some exceptions), including most physical goods, such as furniture, clothing, and electronics, as well as specific services. They must collect, manage, and transfer it to the Mississippi Department of Revenue while staying in compliance with state laws and avoid penalties and interest.


The sales tax determined on four factors:

  1. Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with Nexus.
  2. Location and Products or Services: The sales tax rate varies from product to product and location to location. You must check the sales tax rate applicable to your product according to the product category, county, and city in Mississippi.
  3. Exemptions: Almost all tangible goods and certain services are eligible for sales tax regulation except prescription drugs and few more, which are exempted under Mississippi Law. So you should check with Mississippi state government as to which goods and services sold in Mississippi are subject to sales tax.

To calculate Sales Tax in Mississippi, follow the steps below:


Step 1 – Determine your Nexus:

As a business owner, you are only required to collect sales tax if you are eligible for collecting sales tax and have Sales Tax Nexus in the Mississippi State. And to determine your Nexus in Mississippi, you must have any of the following:

  • A physical location directly or by a subsidiary like an office, distribution, sales, sample room location, or other business places.
  • A permanent or temporary employee like a representative, agent, salesperson, canvasser, or a solicitor working for you in the state.

Step 2 – Determine the Sales Tax Rate:

Once you have determined that your Nexus is with Mississippi, next is to deduce the Sales Tax rate (State + Local Sales Tax) applicable on your product, for which you can refer the tables below:

Mississippi Sales Tax Rates by Location:

The state-wide Sales Tax rate in Mississippi is 7%. Besides, some cities levy additional local sales tax on tangible personal property and most services.


Note:

  • Jackson City, also the capital of Mississippi, levies its own additional sales tax of 1%.
  • 25% of an additional tax of 0.25% is levied by Tupelo City on all retail sales and services provided from within the city's corporate limits.
  • Local Sales Tax rates charged by cities in Mississippi may vary according to the type of purchases and location.

Step 4 – Calculate Sales Tax:

After determining the sales tax rate according to the location and type of purchases, it is easy to calculate the sales tax amount charged on the product and gross price (amount after tax) of a product.


Example # 1:

For instance, you are selling a Hotdog on your store in Gautier, Mississippi, having a net price tag of $5. The amount that a buyer has to pay (including sales tax) on a check out would be:


Manual Method:

Net Price (amount before Tax) of a Hotdog: $5

Total Sales Tax rate: 0.00% (Gautier) + 0.00% (Jackson County) + 7.00% (Mississippi State) = 7.00%


Total Sales Tax amount = $5 x 7.00% = $0.35

Gross Price (Amount after Tax) = 5 + 0.35 = $5.35


It means the buyer has to pay for a Hotdog on a cash counter, which would be $5.35.


Using our Sales Tax Calculator:

All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:

  1. Input the $5 Net Price of a Hotdog as Amount Before Tax
  2. Input or select 00% of the combined Sales Tax rate on the Tax Rate menu.

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:

Mississippi-sales-tax-calculator

Reverse Sales Tax Calculation

In the example above, we have explained to you to calculate the Sales Tax amount payable in a product, and the Gross Price of the Product.

But there are also instances when you are required to deduce how much sales tax buyer has actually paid on a product or you may want to check the accuracy of the sales tax indicated on your item's receipt.

This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our Mississippi Sales Tax Calculator can perform this calculation like a Pro.


Example:

Your buyer has paid $15 for a Pizza at your restaurant in Clinton, Mississippi. Now the buyer is inquiring how much the Pizza actually cost before the sales tax was added. So you need to follow the steps below to determine the amount before tax (net price) of a Pizza:

Gross Price (Amount after Tax) of Pizza: $15

Total Sales Tax rate: 0.00% (Clinton) + 0.00% (Hinds County) + 7.00% (Mississippi State) = 7.00%


Manual Method:

Gross Price with sales tax = [Net Price × (tax rate in decimal form + 1)]

15 = [Net Price x ((7.00/100) + 1)]

15 = Net Price x 1.07

$14 = Net Price


So the original Price (net price) of the Pizza was $14.


Using our Sales Tax Calculator:

You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the aforementioned manual method. All you need is:

  1. Input the $15 Gross Price of Pizza as Amount after Tax
  2. Input or select 7.00% of combined Sales Tax Rate on the Tax Rate

Our calculator will automatically calculate the result and represents it in 3 different forms.

Also Check: Mississippi Paycheck Calculator to Calculate your Paycheck in Mississippi State including all taxes and take home pay.

FAQs

Answer: The general sales tax rate levied on the state level in Mississippi is 7%, which remains the same throughout the state. However, some cities and counties levy local sales tax, which can go up to 0.25%.

Answer: Jackson City, Mississippi levies its own additional sales tax of 1%, so the combined sales tax rate is 8%.

Answer: The state sales tax rate on any casual sale of an automobile and any vehicle purchased outside Mississippi is 5%.

Answer: Groceries and prepared food are charged with the statewide 7% sales tax in Mississippi. However, many cities and counties also impose additional Tourism and Economic Development Taxes on restaurants, which may raise the combined sales tax amount.

Answer: Yes, some cities and counties levy local sales tax up to 0.25%. However, Jackson City, also the Mississippi's capital, levies a local sales tax of 1%.

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