Mississippi sales tax on invoices (2026 guide)

Mississippi's general sales tax rate is 7% — one of the higher state rates — and it applies to a long list of services, not just goods. Unlike most states, Mississippi taxes things like repairs, landscaping, plumbing, electrical work, pest control and computer software services, including web page design.

There's no general county sales tax, but the City of Jackson adds 1%, and some cities have their own special taxes. This guide covers the rates, which services are taxable, permits and how to set up your Mississippi invoices.

Mississippi sales tax rates

Jackson's 1% tax applies to sales and services taxed at 7% or more under Mississippi's sales tax law, made within the city. The Department of Revenue notes that a taxable service performed at a location in Jackson is subject to the extra 1% even if the service provider isn't based there. The tax has a number of exemptions, so check the Department's notices if you sell in Jackson.

Which services are taxable in Mississippi?

The Department of Revenue's business FAQ lists what's subject to sales tax, including:

• repairs of tangible personal property — repair labor is taxable,
• installation labor sold in connection with goods,
• pest control, plumbing, electrical work, and heating and air conditioning work,
• computer software services — software sales, license fees, maintenance contracts and, for custom software, the design and creation of a web page,
• landscaping services — planting flowers, shrubs and trees, laying sod, establishing lawns and earth moving during landscaping,
• dry cleaning, parking lots, hotel and motel rooms, and admissions to amusement, sport or recreation, and
• rentals and leases of equipment and vehicles.

Some things are not taxable: the Department says mowing grass, trimming shrubs, bushes and trees, and weeding are not taxable services. Mississippi taxes other specific businesses too — for example office machine repair, storage and telephone answering services — so if your work is service-based, check Mississippi Code § 27-65-23.

Contractors: construction, renovation or repair of non-residential real property is subject to a separate 3.5% contractor's tax when the contract is over $10,000. Residential construction is excluded from that rate.

Getting a Mississippi sales tax permit

You need a sales tax permit from the Department of Revenue before you start a business that collects sales tax — you can't start selling while you wait. Apply online through TAP (the Taxpayer Access Point). Each business location needs its own permit, and a permit doesn't expire as long as the business continues at that address.

Returns are due by the 20th day after the end of each reporting period, and you must file a return for every period, even when no tax is due.

Remote sellers. Out-of-state businesses whose sales into Mississippi exceed $250,000 in any 12-month period have a substantial economic presence and must register and collect Mississippi tax.

What a Mississippi sales tax invoice should show

• your business name and address,
• the customer's name and address,
• a unique invoice number and the invoice date,
• a description and price for each item or service,
• sales tax as a separate line, with the rate applied (7%, or 8% in Jackson), and
• the total due.

If an invoice mixes taxable work (such as planting) with non-taxable work (such as mowing), keep them on separate lines. In Invoice Native, tick Tax only on the taxable lines.

Resale purchases and exemptions

Mississippi doesn't use the resale certificates many states do. A business buying inventory to resell gives its supplier its sales tax permit information. If it later uses inventory itself, it owes use tax on that inventory.

For other exempt purchases, the Department says it does not accept or use blanket certificates. The customer should give you a valid letter of exemption issued by the Department, such as a sales tax or seller's use tax permit, a Material Purchase Certificate, a Direct Pay Permit or a Letter Ruling. Keep a copy with your records. See how to invoice a tax-exempt customer.

A worked example

Suppose you're a landscaper and you invoice a client for work at their office in Jackson:

• $2,500 for planting shrubs and laying sod (taxable landscaping), and
• $300 for mowing and trimming (not taxable).

The landscaping is taxed at 7%, and because the work is performed in Jackson, Jackson's 1% applies too, for a combined 8%. The tax is $2,500 × 8% = $200.00, and the invoice total is $2,500 + $300 + $200 = $3,000.00.

For the same job outside Jackson (with no other city tax), the tax would be $2,500 × 7% = $175.00, for a total of $2,975.00.

Selling to customers in other states

If you ship goods or deliver taxable services to customers in another state, that state's rules may apply instead of Mississippi's. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, states can require out-of-state sellers to register and collect their sales tax once sales into the state pass a threshold the state sets. If you sell across state lines regularly, check the thresholds and registration rules of each state you sell into — and use that state's rate on those invoices.

Common mistakes on Mississippi invoices

• Assuming services are tax-free. Repairs, landscaping, software services and many trades are taxable at 7%.
• Not taxing web design or software maintenance.
• Taxing mowing and trimming, which the Department says aren't taxable.
• Forgetting Jackson's extra 1% on services performed in the city.
• Accepting a blanket certificate instead of a permit or Department-issued exemption letter.

Quick checklist for Mississippi invoices

• ✅ Sales tax permit through TAP before you start
• ✅ Checked whether your service is taxable at 7%
• ✅ Jackson's 1% added for sales and services in the city
• ✅ Taxable and non-taxable lines separated, tax on its own line
• ✅ Permit numbers or Department exemption letters on file