Sales Tax Rates

Sales Tax is based on gross proceeds of sales or gross income, depending upon the type of business, as follows:

Sales Tax Exemptions

Retail Sales

(Miss. Code Ann. Sections 27-65-17, 27-65-20 & 27-65-25)

The following are subject to sales tax equal to 7% of the gross proceeds of the retail sales of the business, unless otherwise provided:

  • Sale of tangible personal property ...... 7%
  • Farm tractors and logging equipment ...... 1.5%
  • Farm implements ...... 1.5%
  • Sales to electric power associations ...... 1%
  • Certain machinery, machine parts and equipment located on and used in the operation of certain publicly-owned port facilities ...... 1.5%
  • Manufacturing machinery  ...... 1.5%
  • Automobiles and light trucks (10,000 lbs. or less) ...... 5%
  • Sales of automobiles and trucks 10,000 pounds or less gross weight to electric power associations ......3%
  • Sales of automobiles and trucks over 10,000 pounds gross weight to electric power associations ......1%​
  • Trucks (greater than 10,000.00 lbs.), aircraft, semitrailers, mobile homes and modular homes ...... 3%
  • Motor-cycles, mopeds, motor bikes, boats, all-terrain vehicles (ATV's), ​trailers, or other equipment​ ...... 7%
  • Materials to railroads for use in track and track structure ...... 3%
  • Other tangible personal property including alcoholic beverages and beer ...... 7%
  • Sales or rentals of equipment and purchases of materials used in connection with geophysical surveying, exploring, developing, drilling, redrilling, completing, working over, producing, distributing, or testing of oil, gas and other mineral resources ...... 4.5% (7% prior to July 1, 2024)

Wholesale Sales

  • Alcoholic Beverages ...... 0% (7% prior to July 1, 2022)
  • Beer ...... 0% (7% prior to July 1, 2023)
  • Food and drinks for full service vending machines ...... 8%

Construction Contracting

(Miss Code Ann Section 27-65-21)

  • When the total contract price or gross amount received exceeds $10,000.00 (except residential construction) ...... 3.5 %
  • Manufacturing machinery included in contract ...... 1.5 %

Floating Structures

(Miss Code Ann 27-65-18)

Floating structures include casinos, floating restaurants, floating hotels, and similar property.

Sales of tangible personal property which becomes a component of the structure and performance of construction activities ...... 3.5 %

Public Utilities

(Miss Code Ann. 27-65-19)

The following are subject to sales tax on the gross income of the business as provided:

  • Electricity and fuels-Residential use ...... 0%
  • Electricity and fuels-Industrial use ...... 0%
  • Electricity and fuels-Commercial use ...... 7%
  • Telephone and telegraph ...... 7%
  • Water-Commercial or industrial use ...... 7%
  • Water-Residential consumption ...... 0%
  • Transportation charges on shipments of tangible personal property between points within this state when paid directly by the consumer; same rate as property being shipped.

Amusements

(Miss Code Ann 27-65-22)

The following are subject to sales tax equal to 7% of the gross income received as admission, unless otherwise provided:

  • Admissions to amusements conducted in a public or private building, hotel, tent pavilion, lot or resort, enclosed or in the open ...... 7%
  • Admissions to amusements conducted in publicly owned enclosed coliseums and auditoriums (except admissions to athletic contests between colleges and universities and livestock facilities) ...... 3%

Miscellaneous Specified Business

(Miss Code Ann Sections 27-65-23 and 27-65-231)

The following are subject to sales tax equal to 7% of the gross income of the business, unless otherwise provided:

  • Air conditioning installation or repairs
  • Automobile, motorcycle, boat or any other vehicle repairing or servicing;
  • Billiards, pool or domino parlors;
  • Bowling or tenpin alleys;
  • Burglar and fire alarm systems or services;
  • Car washing-automatic, self-service or manual;
  • Computer software sales and services;
  • Cotton compresses or cotton warehouse;
  • Custom creosoting or treating, custom planning, custom sawing; custom meat processing;
  • Electricians, electrical work, wiring, all repairs or installation of electrical equipment;
  • Elevator or escalator installing, repairing or servicing;
  • Film developing or photo finishing;
  • Foundries, machine or general repairing
  • Furniture repairing or upholstering;
  • Grading, excavating, ditching, dredging or landscaping;
  • Hotels, motels, tourist courts or camps, trailer parks;
  • Insulating services or repairs;
  • Jewelry or watch repairing;
  • Laundering, cleaning, pressing or dyeing;
  • Marina services;
  • Mattress renovating;
  • Office and business machine repairing;
  • Parking garages and lots;
  • Plumbing or pipe fitting;
  • Public storage warehouses;
  • Radio or television installing, repairing or servicing;
  • Refrigerating equipment repairs;
  • Services performed in connection with geophysical surveying, exploring, developing, drilling, producing, distributing, or testing of water resources not related to development of oil, gas and other mineral resources;
  • Services performed in connection with geophysical surveying, exploring, developing, drilling, redrilling, completing, working over, producing, distributing, or testing of oil, gas and other mineral resources, including overhead services shall be taxed at the rate of four and one-half percent (4-1/2%);
  • Shoe repairing;
  • Storage lockers;
  • Telephone answering or paging services;
  • Termite or pest control services;
  • Tin and sheet metal shops;
  • T.V. cable systems, subscription TV and other similar activities;
  • Vulcanizing, repairing or recapping of tires or tubes;
  • Welding; and Woodworking or woodturning shops

Rental

Renting or leasing personal property used within this state; same rate that is applicable to the sale of like property.

Renting, for not more than thirty (30) days, motor vehicles with a gross weight of 10,000 Ib​s. or less ...... 6%
This tax is in addition to the 5% sales tax levied by Section 27-65-23.