Key figures
Mississippi receivables
2026, with sources
A 7% state rate and a $250,000 threshold
Mississippi’s general sales tax rate is 7%, among the highest state rates, with some items taxed at other rates and some cities adding local tourism and economic development taxes. A remote seller must register and collect once its sales into Mississippi exceed $250,000 in any 12-month period, one of the higher thresholds in the country.
Software: where the server sits
Mississippi taxes computer software sales and services, including canned and custom software and the installation, maintenance and training sold with it. SB 2449 carved out an exception from July 1, 2023: software maintained on a server located outside Mississippi and accessible only via the internet is not a taxable retail sale or use. In practice most SaaS, PaaS and IaaS is outside the tax.
Example: a startup sells a $30,000-a-year subscription to a Jackson customer. If the application runs on a public cloud region outside Mississippi, there is no Mississippi sales tax. If it sells the same customer a downloadable desktop tool and an on-site training day, those are taxable at 7%.
Deadlines
- As assigned by the Department of RevenueSales tax return
The federal baseline
This page covers what Mississippi adds. The federal rules underneath it apply here too.
Common questions
Is our SaaS taxable in Mississippi?
Generally not, if it runs on servers outside Mississippi. Since July 1, 2023 computer software maintained on a server outside the state and accessible only via the internet is neither a taxable sale nor a taxable use. Software delivered by download or on media, custom software, and software hosted on a server in Mississippi remain taxable, as do installation, maintenance and training sold with taxable software.
When does a remote seller register in Mississippi?
Once sales into Mississippi exceed $250,000 in any 12-month period. There is no transaction-count test. A SaaS company selling only out-of-state-hosted software has no taxable sales here even above the threshold.
Receivables next door
- ALAlabama receivablesAlabama layers 200-plus state-administered local taxes and self-administered cities on its state sales tax; remote sellers past $250,000 can collect a flat 8% through SSUT, and SaaS taxability is unsettled.
- ARArkansas receivablesArkansas nexus is $100,000 or 200 taxable transactions. It taxes digital goods but generally not SaaS, at 6.5% state plus city and county tax.
- LALouisiana receivablesLouisiana taxes SaaS from 2025 at a 5% state rate plus parish tax. Remote sellers over $100,000 file once through the Remote Sellers Commission; sellers with presence deal with LDR and each parish.
- TNTennessee receivablesTennessee charges 7% plus local tax, taxes remotely accessed software, and requires remote sellers to register once retail sales into the state exceed $100,000 over 12 months.
Founder guides on this
- 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.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
- StripeHow to reconcile Stripe payouts to your booksA Stripe payout is charges less fees, refunds and disputes, batched across days. How to book it gross, tie it to the bank, and keep revenue right.
More of the Mississippi guide
- AccountingAccounting and state tax in MississippiCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in MississippiPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- 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.