Mississippi’s tax system includes various obligations, including income, sales tax, and other state-level taxes. These are administered and enforced by the Mississippi Department of Revenue (MS DOR), which oversees tax collection, account maintenance, and compliance actions across the state.

Both residents and business owners must familiarize themselves with the state's tax procedures. A clear grasp of tax collection can help prevent penalties, reduce confusion, and prepare you to respond quickly if an issue arises.

The Mississippi sales tax guide offers detailed information about tax exemptions, tax rates, filing methods, and how to remit Mississippi sales tax through the Taxpayer Access Point (TAP).

Mississippi Sales Tax

The overall sales tax rate in Mississippi is 7%, but local jurisdictions may impose additional rates. As a result, the total sales tax can range between 7% and 8%, depending on the location of the sale.

Businesses are responsible for collecting sales tax at the time of sale and must remit Mississippi sales tax to the Department of Revenue through approved filing channels.

To collect tax legally, businesses must first complete their sales tax registration by applying for a Mississippi seller’s permit. This registration process is available online through the state’s Taxpayer Access Point (TAP).

The Mississippi sales tax guide outlines rules for registration, collection, filing, and sales tax exemptions, helping businesses meet compliance requirements and avoid unnecessary penalties.

Economic Nexus and Sales Tax

Businesses without a physical presence in Mississippi may still be required to collect sales tax if they meet economic nexus thresholds. Under state law, remote sellers with more than $250,000 in Mississippi sales over 12 months must register, collect, and remit sales tax.

Reaching this sales volume triggers economic nexus, even if the business lacks a storefront, warehouse, or employees in the state. Activities like attending trade shows, storing inventory, or shipping goods to Mississippi residents can also contribute to establishing a nexus.

Failure to comply once the sales tax nexus is triggered may result in audits, penalties, and interest on uncollected taxes. Businesses are encouraged to monitor their sales activity closely and register once they approach the threshold.

Knowing whether your business has nexus helps determine whether you must collect Mississippi sales tax, even from out-of-state.

Sales Tax Rates and Calculations

The standard sales tax in Mississippi is 7%, though some cities and counties impose local taxes that raise the total to 8%. Businesses must determine the correct rate based on the sale location, including online or remote transactions.

When calculating how much sales tax to charge, the following components may be included:

  • Purchase price: The total amount charged to the buyer for the goods or services sold.
  • Shipping charges: Delivery fees are typically considered taxable and must be included in the calculation.
  • Handling fees: If the seller charges for packaging or processing, this amount is usually taxable as well.
  • Discounts and coupons: These may reduce the taxable base depending on whether they are store-funded or manufacturer-funded.

Businesses can use the official Mississippi sales tax calculator to simplify calculations to determine the correct tax for each transaction.

Filing and Paying Sales Taxes

Mississippi businesses must file regular sales tax returns and submit payment by the deadlines. Most returns are due on the 20th day of the month following the reporting period. Timely filing helps businesses avoid penalties and interest.

Follow these steps to file and pay your taxes:

  1. Log into TAP: Access the Taxpayer Access Point (TAP) at https://tap.dor.ms.gov to manage your account and file returns.
  2. Complete your return: Enter your gross sales, applicable deductions, and taxable sales to calculate the amount owed.
  3. Submit your return: Returns must be submitted electronically by the due date to be considered on time.
  4. Make your payment: Pay using e-check, credit card, or ACH debit through TAP. Some payment methods may include convenience fees.
  5. Verify your records: Confirm your return and payment were received by checking your TAP account history.

The Department of Revenue also offers a system for automating sales tax to help streamline recurring filings for larger or high-volume businesses.

Collecting Sales Tax in Mississippi

Any business selling taxable goods or services in Mississippi is required to collect sales tax at the point of sale and submit those funds to the Department of Revenue. This applies whether you operate a storefront, sell online, or serve Mississippi residents from out of state.

Key responsibilities include the following:

  • Registering to collect tax

All businesses must complete sales tax registration before collecting any tax. This is done online through the Taxpayer Access Point (TAP) and is required even for remote sellers.

  • Knowing what’s taxable and what’s exempt

Understanding which products or services are generally taxable and which qualify for sales tax exemptions is essential to proper collection. The state guides items like prescription drugs, food stamps, and school supplies that may be eligible for exemptions.

  • Remitting the collected tax

You must submit all collected funds by the due date for your assigned filing frequency. Businesses must remit Mississippi sales tax through TAP or an approved electronic payment method.

  • Using official resources

The Mississippi Department of Revenue provides a detailed guide on Mississippi sales tax to help businesses comply with state tax laws and filing rules.

Mississippi Sales Tax Guide

The official Mississippi sales tax guide is a central resource for businesses and taxpayers seeking to understand state sales tax obligations. It covers key topics such as tax rates, filing instructions, sales tax exemptions, and how to collect Mississippi sales tax legally.

The guide also explains registering, maintaining compliance, and resolving common tax issues. The Mississippi Department of Revenue’s website provides access and is regularly updated to reflect changes in Mississippi law and policy.

Income Tax in Mississippi

Mississippi residents and businesses must file their income tax returns and pay any tax owed by the annual deadline. The Mississippi Department of Revenue administers the program, monitors compliance, and processes refunds for overpaid taxpayers.

Key points to keep in mind:

  • Individuals and businesses must file annual income tax returns using the appropriate state forms.

  • If too much tax was paid during the year, a refund for Mississippi income tax may be available.

  • The income tax return must be submitted by the state’s deadline to avoid interest and penalties.

  • All filings and refund claims must be supported by proper documentation and should be submitted electronically where possible.

Mississippi Income Tax Refund

You may be eligible for a refund if you overpay your Mississippi income taxes. The Mississippi Department of Revenue processes refunds, which can be requested when you file your annual state income tax return.

Here’s what to know about claiming and tracking your refund:

  • Filing your return: To claim a Mississippi income tax refund, you must submit a completed state income tax return showing the overpayment. Returns can be filed electronically through TAP or by mail.

  • Providing documentation: Supporting documents such as W-2s, 1099s, and other proof of tax withheld may be required. Be sure all materials are included with your return to avoid delays.

  • Tracking your refund: You can check your refund status online by logging into TAP or using the refund status tool on the department’s website. You may also call the MS DOR directly to speak with an agent.

Mississippi Sales

Most sales of physical goods and some services in Mississippi are subject to sales tax. Businesses must determine whether their transactions are taxable and follow state rules when collecting and submitting tax payments.

Key points for business owners:

  • The Mississippi sales tax applies to tangible personal property and certain taxable services sold in the state.

  • Sellers are responsible for identifying which items are generally taxable and which may qualify for sales tax exemptions.

  • All taxable sales must be reported in your return, including online transactions made to Mississippi residents.

Businesses must collect Mississippi sales tax and remit it to the Department of Revenue using approved methods and timelines.

Tax Audits and Appeals

The Mississippi Department of Revenue conducts audits to verify tax accuracy and identify errors or noncompliance. Taxpayers can challenge the findings through a formal appeals process if discrepancies are found.

Here’s how the audit and appeal process typically unfolds:

  1. Audit selection: Taxpayers may be audited based on reporting inconsistencies, random selection, or third-party information that doesn’t match returns.
  2. Audit findings: If the audit reveals unpaid tax or overstated deductions, the department issues an official notice of assessment with the amount owed.

  1. Right to appeal: Taxpayers have 60 days from the notice date to file an appeal with the Review Board. The appeal must include a written explanation and supporting documents.

  1. Board of Tax Appeals: If the Review Board denies the appeal, you may file a second appeal with the Board of Tax Appeals. This step is required before pursuing a chancery court case.

  1. Further legal options: If necessary, a final appeal can be filed in Mississippi’s chancery court system to challenge the assessment under applicable Mississippi law.

Frequently Asked Questions

These common questions offer additional clarity on Mississippi’s tax collection process, payment consequences, and property tax rules for residents and third parties.

What happens if you don't pay Mississippi state taxes?

Failing to pay Mississippi state taxes can lead to a series of escalating enforcement actions. Once the tax debt becomes final—meaning the time to appeal has passed—the Department of Revenue has broad authority to collect what’s owed.

Here’s what may happen:

  • Wage garnishment: The state can order your employer to withhold up to 25% of your disposable income until the balance is paid.
  • Bank levies: Your bank accounts may be frozen, and funds may be withdrawn to satisfy the debt.
  • Tax liens: A lien may be filed against your property, affecting your credit and ability to sell or refinance assets.
  • License suspension: Business permits or professional licenses may be revoked or denied until your balance is resolved.

Mississippi’s collection timeline is often faster than the IRS. You may receive fewer notices, and there’s limited time to respond before enforcement begins. Acting early—by verifying your balance, disputing errors, or setting up a payment plan—can help you avoid more serious financial consequences.

How does tax collection work?

Mississippi’s tax collection process follows a structured timeline, but it moves quickly once a tax debt is assessed and becomes final.

Here’s how it typically works:

  1. Assessment
    The Department of Revenue identifies a tax liability—this may happen after you file a return without full payment, miss a filing, or undergo an audit.

  2. Notice and appeal window
    You’ll receive an official assessment notice. You have 60 days to pay or submit an appeal. If no action is taken, the debt becomes final.

  3. Demand for payment
    Once the assessment is final, the state sends a demand for payment. This step may include penalties, interest, and warnings about enforcement.

  4. Enforcement actions
    If payment isn’t made, the state may initiate:


    • Wage garnishment

    • Bank account levies

    • Property liens

    • License suspensions

    • Tax refund offsets

  5. Resolution options
    To resolve the debt, you can:


    • Pay in full through the TAP portal

    • Apply for an installment agreement

    • Submit an Offer in Compromise (in hardship cases)

    • Appeal if errors or disputes exist

Understanding how quickly tax collection escalates in Mississippi is essential. Proactive communication with the Department of Revenue is key to avoiding costly enforcement.

What happens if you don't pay property taxes in Mississippi?

Unpaid property taxes in Mississippi can lead to long-term consequences, including loss of the property through a tax sale.

Here’s what may happen:

  • Accrual of penalties and interest
    Late property taxes will accrue additional fees, increasing the total amount owed over time.

  • Tax lien certificate sale
    After a certain period, the county may sell a tax lien certificate at a public auction. This gives the purchaser a legal claim against the property.

  • Two-year redemption period
    You have two years from the tax sale date to redeem the property by paying all outstanding taxes, interest, penalties, and costs. If you don’t, ownership may legally transfer to the lienholder.

  • Loss of property title
    The buyer can apply for a tax deed after the redemption window closes. This can result in the complete transfer of ownership.

Avoiding enforcement requires paying property taxes on time or working directly with the county tax office if you're experiencing hardship. Mississippi’s tax collection process for property differs from state income tax enforcement but can still result in serious consequences if left unresolved.

What happens if I pay someone else's property taxes in Mississippi?

Paying someone else's property taxes in Mississippi does not automatically give you legal rights to the property—but it may create a financial claim under specific conditions.

Here’s what to understand:

  • Redemption rights, not ownership
    If you pay delinquent property taxes at a county tax sale, you may receive a tax lien certificate, not the property itself. The current owner typically has two years to redeem it.

  • No guarantee of title transfer
    Even if you pay all outstanding taxes, ownership doesn't automatically transfer unless the redemption period expires and you take legal steps to claim the deed.

  • Possibility of reimbursement
    If the original owner redeems the property, they must repay the taxes you covered, plus interest and certain costs. However, this only applies to official tax lien purchases—not voluntary payments on another’s behalf.

  • Legal process required
    To gain ownership, you must follow specific legal procedures, including notification to the current owner and filing for a tax deed after the redemption period ends.

Paying someone else’s taxes can be a risky investment if you’re hoping to gain property ownership. Always consult a tax professional or attorney before taking this route.

Mississippi’s tax system includes various obligations, including income, sales tax, and other state-level taxes. These are administered and enforced by the Mississippi Department of Revenue (MS DOR), which oversees tax collection, account maintenance, and compliance actions across the state.

Both residents and business owners must familiarize themselves with the state's tax procedures. A clear grasp of tax collection can help prevent penalties, reduce confusion, and prepare you to respond quickly if an issue arises.

The Mississippi sales tax guide offers detailed information about tax exemptions, tax rates, filing methods, and how to remit Mississippi sales tax through the Taxpayer Access Point (TAP).

Mississippi Sales Tax

The overall sales tax rate in Mississippi is 7%, but local jurisdictions may impose additional rates. As a result, the total sales tax can range between 7% and 8%, depending on the location of the sale.

Businesses are responsible for collecting sales tax at the time of sale and must remit Mississippi sales tax to the Department of Revenue through approved filing channels.

To collect tax legally, businesses must first complete their sales tax registration by applying for a Mississippi seller’s permit. This registration process is available online through the state’s Taxpayer Access Point (TAP).

The Mississippi sales tax guide outlines rules for registration, collection, filing, and sales tax exemptions, helping businesses meet compliance requirements and avoid unnecessary penalties.

Economic Nexus and Sales Tax

Businesses without a physical presence in Mississippi may still be required to collect sales tax if they meet economic nexus thresholds. Under state law, remote sellers with more than $250,000 in Mississippi sales over 12 months must register, collect, and remit sales tax.

Reaching this sales volume triggers economic nexus, even if the business lacks a storefront, warehouse, or employees in the state. Activities like attending trade shows, storing inventory, or shipping goods to Mississippi residents can also contribute to establishing a nexus.

Failure to comply once the sales tax nexus is triggered may result in audits, penalties, and interest on uncollected taxes. Businesses are encouraged to monitor their sales activity closely and register once they approach the threshold.

Knowing whether your business has nexus helps determine whether you must collect Mississippi sales tax, even from out-of-state.

Sales Tax Rates and Calculations

The standard sales tax in Mississippi is 7%, though some cities and counties impose local taxes that raise the total to 8%. Businesses must determine the correct rate based on the sale location, including online or remote transactions.

When calculating how much sales tax to charge, the following components may be included:

  • Purchase price: The total amount charged to the buyer for the goods or services sold.
  • Shipping charges: Delivery fees are typically considered taxable and must be included in the calculation.
  • Handling fees: If the seller charges for packaging or processing, this amount is usually taxable as well.
  • Discounts and coupons: These may reduce the taxable base depending on whether they are store-funded or manufacturer-funded.

Businesses can use the official Mississippi sales tax calculator to simplify calculations to determine the correct tax for each transaction.

Filing and Paying Sales Taxes

Mississippi businesses must file regular sales tax returns and submit payment by the deadlines. Most returns are due on the 20th day of the month following the reporting period. Timely filing helps businesses avoid penalties and interest.

Follow these steps to file and pay your taxes:

  1. Log into TAP: Access the Taxpayer Access Point (TAP) at https://tap.dor.ms.gov to manage your account and file returns.
  2. Complete your return: Enter your gross sales, applicable deductions, and taxable sales to calculate the amount owed.
  3. Submit your return: Returns must be submitted electronically by the due date to be considered on time.
  4. Make your payment: Pay using e-check, credit card, or ACH debit through TAP. Some payment methods may include convenience fees.
  5. Verify your records: Confirm your return and payment were received by checking your TAP account history.

The Department of Revenue also offers a system for automating sales tax to help streamline recurring filings for larger or high-volume businesses.

Collecting Sales Tax in Mississippi

Any business selling taxable goods or services in Mississippi is required to collect sales tax at the point of sale and submit those funds to the Department of Revenue. This applies whether you operate a storefront, sell online, or serve Mississippi residents from out of state.

Key responsibilities include the following:

  • Registering to collect tax

All businesses must complete sales tax registration before collecting any tax. This is done online through the Taxpayer Access Point (TAP) and is required even for remote sellers.

  • Knowing what’s taxable and what’s exempt

Understanding which products or services are generally taxable and which qualify for sales tax exemptions is essential to proper collection. The state guides items like prescription drugs, food stamps, and school supplies that may be eligible for exemptions.

  • Remitting the collected tax

You must submit all collected funds by the due date for your assigned filing frequency. Businesses must remit Mississippi sales tax through TAP or an approved electronic payment method.

  • Using official resources

The Mississippi Department of Revenue provides a detailed guide on Mississippi sales tax to help businesses comply with state tax laws and filing rules.

Mississippi Sales Tax Guide

The official Mississippi sales tax guide is a central resource for businesses and taxpayers seeking to understand state sales tax obligations. It covers key topics such as tax rates, filing instructions, sales tax exemptions, and how to collect Mississippi sales tax legally.

The guide also explains registering, maintaining compliance, and resolving common tax issues. The Mississippi Department of Revenue’s website provides access and is regularly updated to reflect changes in Mississippi law and policy.

Income Tax in Mississippi

Mississippi residents and businesses must file their income tax returns and pay any tax owed by the annual deadline. The Mississippi Department of Revenue administers the program, monitors compliance, and processes refunds for overpaid taxpayers.

Key points to keep in mind:

  • Individuals and businesses must file annual income tax returns using the appropriate state forms.

  • If too much tax was paid during the year, a refund for Mississippi income tax may be available.

  • The income tax return must be submitted by the state’s deadline to avoid interest and penalties.

  • All filings and refund claims must be supported by proper documentation and should be submitted electronically where possible.

Mississippi Income Tax Refund

You may be eligible for a refund if you overpay your Mississippi income taxes. The Mississippi Department of Revenue processes refunds, which can be requested when you file your annual state income tax return.

Here’s what to know about claiming and tracking your refund:

  • Filing your return: To claim a Mississippi income tax refund, you must submit a completed state income tax return showing the overpayment. Returns can be filed electronically through TAP or by mail.

  • Providing documentation: Supporting documents such as W-2s, 1099s, and other proof of tax withheld may be required. Be sure all materials are included with your return to avoid delays.

  • Tracking your refund: You can check your refund status online by logging into TAP or using the refund status tool on the department’s website. You may also call the MS DOR directly to speak with an agent.

Mississippi Sales

Most sales of physical goods and some services in Mississippi are subject to sales tax. Businesses must determine whether their transactions are taxable and follow state rules when collecting and submitting tax payments.

Key points for business owners:

  • The Mississippi sales tax applies to tangible personal property and certain taxable services sold in the state.

  • Sellers are responsible for identifying which items are generally taxable and which may qualify for sales tax exemptions.

  • All taxable sales must be reported in your return, including online transactions made to Mississippi residents.

Businesses must collect Mississippi sales tax and remit it to the Department of Revenue using approved methods and timelines.

Tax Audits and Appeals

The Mississippi Department of Revenue conducts audits to verify tax accuracy and identify errors or noncompliance. Taxpayers can challenge the findings through a formal appeals process if discrepancies are found.

Here’s how the audit and appeal process typically unfolds:

  1. Audit selection: Taxpayers may be audited based on reporting inconsistencies, random selection, or third-party information that doesn’t match returns.
  2. Audit findings: If the audit reveals unpaid tax or overstated deductions, the department issues an official notice of assessment with the amount owed.

  1. Right to appeal: Taxpayers have 60 days from the notice date to file an appeal with the Review Board. The appeal must include a written explanation and supporting documents.

  1. Board of Tax Appeals: If the Review Board denies the appeal, you may file a second appeal with the Board of Tax Appeals. This step is required before pursuing a chancery court case.

  1. Further legal options: If necessary, a final appeal can be filed in Mississippi’s chancery court system to challenge the assessment under applicable Mississippi law.

Frequently Asked Questions

These common questions offer additional clarity on Mississippi’s tax collection process, payment consequences, and property tax rules for residents and third parties.

What happens if you don't pay Mississippi state taxes?

Failing to pay Mississippi state taxes can lead to a series of escalating enforcement actions. Once the tax debt becomes final—meaning the time to appeal has passed—the Department of Revenue has broad authority to collect what’s owed.

Here’s what may happen:

  • Wage garnishment: The state can order your employer to withhold up to 25% of your disposable income until the balance is paid.
  • Bank levies: Your bank accounts may be frozen, and funds may be withdrawn to satisfy the debt.
  • Tax liens: A lien may be filed against your property, affecting your credit and ability to sell or refinance assets.
  • License suspension: Business permits or professional licenses may be revoked or denied until your balance is resolved.

Mississippi’s collection timeline is often faster than the IRS. You may receive fewer notices, and there’s limited time to respond before enforcement begins. Acting early—by verifying your balance, disputing errors, or setting up a payment plan—can help you avoid more serious financial consequences.

How does tax collection work?

Mississippi’s tax collection process follows a structured timeline, but it moves quickly once a tax debt is assessed and becomes final.

Here’s how it typically works:

  1. Assessment
    The Department of Revenue identifies a tax liability—this may happen after you file a return without full payment, miss a filing, or undergo an audit.

  2. Notice and appeal window
    You’ll receive an official assessment notice. You have 60 days to pay or submit an appeal. If no action is taken, the debt becomes final.

  3. Demand for payment
    Once the assessment is final, the state sends a demand for payment. This step may include penalties, interest, and warnings about enforcement.

  4. Enforcement actions
    If payment isn’t made, the state may initiate:


    • Wage garnishment

    • Bank account levies

    • Property liens

    • License suspensions

    • Tax refund offsets

  5. Resolution options
    To resolve the debt, you can:


    • Pay in full through the TAP portal

    • Apply for an installment agreement

    • Submit an Offer in Compromise (in hardship cases)

    • Appeal if errors or disputes exist

Understanding how quickly tax collection escalates in Mississippi is essential. Proactive communication with the Department of Revenue is key to avoiding costly enforcement.

What happens if you don't pay property taxes in Mississippi?

Unpaid property taxes in Mississippi can lead to long-term consequences, including loss of the property through a tax sale.

Here’s what may happen:

  • Accrual of penalties and interest
    Late property taxes will accrue additional fees, increasing the total amount owed over time.

  • Tax lien certificate sale
    After a certain period, the county may sell a tax lien certificate at a public auction. This gives the purchaser a legal claim against the property.

  • Two-year redemption period
    You have two years from the tax sale date to redeem the property by paying all outstanding taxes, interest, penalties, and costs. If you don’t, ownership may legally transfer to the lienholder.

  • Loss of property title
    The buyer can apply for a tax deed after the redemption window closes. This can result in the complete transfer of ownership.

Avoiding enforcement requires paying property taxes on time or working directly with the county tax office if you're experiencing hardship. Mississippi’s tax collection process for property differs from state income tax enforcement but can still result in serious consequences if left unresolved.

What happens if I pay someone else's property taxes in Mississippi?

Paying someone else's property taxes in Mississippi does not automatically give you legal rights to the property—but it may create a financial claim under specific conditions.

Here’s what to understand:

  • Redemption rights, not ownership
    If you pay delinquent property taxes at a county tax sale, you may receive a tax lien certificate, not the property itself. The current owner typically has two years to redeem it.

  • No guarantee of title transfer
    Even if you pay all outstanding taxes, ownership doesn't automatically transfer unless the redemption period expires and you take legal steps to claim the deed.

  • Possibility of reimbursement
    If the original owner redeems the property, they must repay the taxes you covered, plus interest and certain costs. However, this only applies to official tax lien purchases—not voluntary payments on another’s behalf.

  • Legal process required
    To gain ownership, you must follow specific legal procedures, including notification to the current owner and filing for a tax deed after the redemption period ends.

Paying someone else’s taxes can be a risky investment if you’re hoping to gain property ownership. Always consult a tax professional or attorney before taking this route.