Mississippi Sales & Use Tax 2025
Mississippi Sales Tax Guide for SaaS and E-Commerce Businesses 2025
2025-09-16
Mississippi imposes a 7% statewide sales and use tax on tangible personal property, certain digital products, and computer software and software services. Local option taxes up to 1% apply in some municipalities.
Effective July 1, 2023, Senate Bill 2449 clarified how Mississippi taxes computer software, software services, and digital products. SaaS is generally taxable if hosted in Mississippi but exempt if hosted on servers outside Mississippi and accessed remotely.
This guide explains Mississippi’s rules for SaaS and e-commerce sellers, including economic nexus, marketplace facilitator obligations, filing deadlines, and exemptions.
Last updated: September 2025
Quick Reference: Mississippi Sales & Use Tax 2025
| Topic | Details |
|---|---|
| Statewide sales tax rate | 7.00% (Mississippi DOR – Sales & Use Taxes) |
| Local rates | Up to 1% in some cities/municipalities |
| Economic nexus threshold | $250,000 in sales into Mississippi in any 12-month period (MDOR – Online Seller Guidance PDF) |
| Is SaaS taxable? | Yes, if software/services are hosted in Mississippi. Exempt if hosted out-of-state and accessed remotely (MDOR Notice 72-23-12 PDF) |
| Marketplace facilitators | Required to collect if exceeding $250,000 threshold (MDOR – Online Seller Guidance PDF) |
| Registration portal | Mississippi TAP (Taxpayer Access Point) |
SaaS & Digital Products in Mississippi
Mississippi law distinguishes between software/services located in Mississippi (taxable) and software/services hosted outside Mississippi and accessed remotely (exempt).
Key SaaS Rules
- Taxable: Prewritten software or software services delivered, maintained, or hosted inside Mississippi.
- Exempt: Software maintained on servers outside Mississippi and accessed remotely.
- Computer software services: Installation, configuration, modification, testing, and troubleshooting are taxable when performed in Mississippi.
- Direct Pay Permits: Purchasers may apply for a Computer Software Direct Pay Permit to handle tax directly.
Sources:
E-Commerce & Tangible Goods
| Category | Taxable? | Notes |
|---|---|---|
| Tangible goods | Yes | Most retail goods taxable at 7%; exemptions exist for groceries, prescriptions, certain agricultural/industrial uses. |
| SaaS/software | Yes (if in MS) | Prewritten software and related services taxable when located in-state. |
| Out-of-state SaaS | No | Hosted outside Mississippi and accessed remotely is exempt. |
| Custom software | Depends | May qualify as a service; review case-by-case with DOR. |
| Digital products | Yes | Downloads, e-books, streaming are taxable unless specifically exempted. |
Economic Nexus: Remote Sellers
Remote sellers must register and collect if:
- They have more than $250,000 in Mississippi sales in any 12-month period.
Source: MDOR Online Seller Guidance (PDF)
Marketplace Facilitator Rules
Marketplace facilitators must:
- Register and collect if their Mississippi sales exceed $250,000.
- Collect tax on all third-party sales once threshold is met.
Source: MDOR Online Seller Guidance (PDF)
Filing & Registration
- Register via: Mississippi TAP
- Filing frequency: Monthly, quarterly, or annually (assigned by DOR).
- Due dates: Returns/payments due by the 20th of the month after the reporting period.
- Zero returns: Must be filed even with no taxable sales.
Penalties & Compliance
- Late filing penalty: 10% of tax due.
- Late payment penalty: 1% per month up to 25%.
- Interest: Accrues on unpaid balances.
- Recordkeeping: Maintain proof of software location (in vs. out-of-state), exemption certificates, facilitator collection records, etc.
Source: MDOR – Sales & Use Taxes
FAQs: Mississippi SaaS & E-Commerce Tax
Is SaaS taxable in Mississippi?
Yes, if the software/service is hosted in Mississippi. Exempt if hosted out-of-state. (MDOR Notice 72-23-12)
What is the remote seller threshold?
$250,000 in sales in any 12-month period. (MDOR Online Seller Guidance)
Do marketplace facilitators need to collect?
Yes, if exceeding $250,000 in sales. (MDOR Online Seller Guidance)
Does Mississippi have local sales taxes?
Yes, but only up to 1% in some municipalities; no county-by-county rates like other states. (MDOR – Sales & Use Taxes)
Official Mississippi Resources
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