Key figures
Mississippi payables
2026, with sources
A $3,000 threshold for service 1099s
Mississippi asks for information returns on personal service income of $3,000 or more in a year, not the federal $600, and on dividends, interest, rents, royalties and similar income of $600 or more. They are due February 28, with a Form 89-140 transmittal for paper filings, and electronically through TAP for a company issuing 10 or more.
Example: a Jackson startup pays three Mississippi contractors $2,000, $5,000 and $40,000. It issues federal 1099-NECs to all three, and reports the two above $3,000 to the Department of Revenue by February 28. The Department follows the federal rules to decide who is an employee and who is a contractor.
Use tax after the software change
Since July 1, 2023 Mississippi exempts software maintained on a server outside the state and accessed only via the internet, so most SaaS subscriptions carry no use tax. Taxable goods and downloaded software bought from vendors that do not collect Mississippi tax still carry use tax, reported to the Department of Revenue. SB 2449 also lets buyers obtain a direct pay permit and pay tax on software directly.
Deadlines
- February 281099s for personal service income of $3,000 or more, and $600 for rents, royalties and similar incomeForm 89-140
The federal baseline
This page covers what Mississippi adds. The federal rules underneath it apply here too.
Common questions
Which 1099s do we file with Mississippi?
Mississippi sets its own threshold: 1099s for personal service income are reportable to the Department of Revenue at $3,000 a year, not the federal $600, while dividends, interest, rents and royalties are reportable at $600. They are due February 28, electronically if you have 10 or more.
Do we owe Mississippi use tax on our SaaS tools?
Not for software hosted on a server outside Mississippi and accessed only over the internet; SB 2449 made that exempt from use tax from July 1, 2023. Downloaded software and hardware bought without Mississippi tax still carry use tax.
Payables next door
- ALAlabama payablesAlabama’s payables issue is consumers use tax at state and local rates on untaxed purchases, filed with the Department of Revenue and any self-administered localities; a vendor’s 8% SSUT collection ends the buyer’s obligation.
- ARArkansas payablesArkansas wants state copies of 1099s with the ARW-3 by January 31. Use tax at 6.5% plus local reaches hardware and specified digital products, not hosted SaaS.
- LALouisiana payablesLouisiana wants every 1099-NEC by February 28, through CF/SF or LaWage, and since 2025 software purchases carry state and parish use tax when the vendor did not charge it.
- TNTennessee payablesTennessee has no state 1099 filing and no contractor withholding; the payables issue is use tax, which reaches the SaaS tools a startup buys because remotely accessed software is taxable here.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
More of the Mississippi guide
- AccountingAccounting and state tax in MississippiCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in MississippiSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayrollPayroll taxes and employer rules in MississippiWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in MississippiRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in MississippiCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.