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%

Wholesale Sales

  • Alcoholic Beverages and beer ...... 7%
  • 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.


(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 oil, gas, water and other mineral resources;
  • 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


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.