MS
Mississippi Small Business Tax Guide
Mississippi's sales tax, permits, return dates and income tax in the Department of Revenue's (DOR) wording, dated as checked. General information, not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in Mississippi before making filing or planning decisions.
Tax landscape for small businesses
Mississippi's Department of Revenue (DOR) runs both sales tax and income tax. The state figures on this page are quoted from DOR pages, with federal points from the IRS; none of them is estimated.
The DOR (Mississippi, checked October 31, 2026) says: "All sales of tangible personal property in the State of Mississippi are subject to the regular retail rate of sales tax (7%) unless the law exempts the item or provides a reduced rate of tax for an item." Its rates page lists lower rates for some items, such as "5%" for "Sales of groceries (food and drink for human consumption eligible to be purchased with Supplemental Nutrition Assistance Program (SNAP) benefits)".
Sample calculation (illustrative figures) using the DOR's 7% retail rate (Mississippi, checked October 31, 2026): a furniture restorer sells a client a refinished dresser for $1,000.00. The sales tax line is $1,000.00 × 7% = $70.00, making the invoice $1,070.00 in all. Items the law exempts or taxes at a reduced rate are worked out differently, as the DOR's rates page shows.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| Retail sales tax (DOR) | "7%" regular retail rate | Mississippi, checked October 31, 2026. Reduced rates apply to some items on the DOR's rates page. |
| Groceries eligible for SNAP (DOR) | "5%" | DOR sales tax rates page, Mississippi, checked October 31, 2026. |
| Individual income tax (DOR) | "taxed at 4.4%" after an exempt first $10,000 | DOR income tax FAQ, Mississippi, checked October 31, 2026: "The first $10,000 of taxable income is exempt". The FAQ doesn't say which tax year the 4.4% rate is for. The DOR's 2025 Legislation page (Mississippi, as retrieved on November 1, 2026) lists later rates under HB 1, starting "For calendar year 2027, a rate of 3.75%", and gives no rate for 2026. |
| Self-employment tax (federal) | "15.3%" | In the US (federal), the IRS self-employment tax page, last reviewed or updated October 30, 2026. |
Filing requirements
This list isn't a complete checklist for your business.
Get a sales tax permit before selling
The DOR (Mississippi, checked October 31, 2026) says: "Before engaging in any business in Mississippi subject to sales tax, a permit or registration license is required from the Department of Revenue." It adds: "A separate permit is required for each location." For sellers outside the state, the DOR's business tax FAQ (Mississippi, checked October 31, 2026) says: "Effective July 1, 2018, businesses located out of the state that have sales into the state of Mississippi that exceed $250,000 over any twelve month period are considered to have substantial economic presence in the state and are required to register with the Mississippi Department of Revenue in order to collect and remit tax."
Sales tax return due date
The DOR's reporting requirements page (Mississippi, checked October 31, 2026) says: "Returns are due on or before the 20th day following the end of the reporting period." It also says: "Interest begins the month after the due date; penalty applies immediately."
How often to file
On the same page (Mississippi, checked October 31, 2026): "If the annual total payment is less than $600.00, annual returns are filed. If the annual total payment is between $600.00 and $3,599.00, quarterly returns are filed. If the annual remittance is more than $3,599.00, monthly returns are filed."
Use tax
The DOR (Mississippi, checked October 31, 2026) says: "Use tax rates are the same as those applicable to Sales Tax." and "Due dates of Use Tax Returns are the same as for sales tax returns."
Federal estimated tax
In the US (federal), the IRS estimated taxes page (last reviewed or updated September 25, 2026) says: "Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed."
Deductions and write-offs
Confirm with your state how it treats each item.
- SE tax deduction: in the US (federal), the IRS self-employment tax page (last reviewed or updated October 30, 2026) says "you can deduct the employer-equivalent portion of your SE tax when calculating your adjusted gross income."
- Health insurance: the same IRS page says "a deduction, for income tax purposes, is allowed to self-employed individuals for the cost of health insurance."
- Which Mississippi deductions and credits fit your business is a question this page leaves to the DOR or a tax professional.
Practical tips
- Selling from more than one place? The DOR (Mississippi, checked October 31, 2026) says: "A separate permit is required for each location."
- Billed's invoice software page says: "Save your tax rates and settings once, and Billed calculates taxes automatically when you create invoices and estimates."
- Treat filing and paying as two jobs: the DOR (Mississippi, checked October 31, 2026) says "When filing online, completing a return and paying the tax are two separate steps: You must do both to satisfy the filing requirements."
- Billed's expense tracking page says: "An expense in Billed records who you paid, when, how much and which category it belongs to, with the receipt attached to the same entry."
Frequently asked questions
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At a glance
| Need | Mississippi DOR page |
|---|---|
| Retail and reduced rates | Sales Tax Rates |
| Permit before selling | Mississippi Sales and Use Taxes |
| Due dates and filing frequency | Reporting Requirements |
| Individual income tax rate | Individual Income Tax FAQs |
When this isn't for you
Special Mississippi taxes (tourism and economic development, petroleum, gaming and others), payroll withholding and corporate franchise tax aren't covered here. For those, or for your own position, contact the Mississippi DOR or a tax professional.