Mississippi Sales Tax Calculator (2026) — Add or Reverse Tax
Mississippi's combined sales tax rate is 7.06% (7.00% state + 0.06% average local). Use the calculator below to add Mississippi sales tax to a price, or reverse a tax-included total to find the pre-tax price and exact tax amount.
How to use this calculator:
- Adding tax — enter a pre-tax price, pick "Add tax to price," and the calculator applies the Mississippi rate to show the tax amount and final total.
- Reversing (extracting) tax — enter a total that already includes tax, pick "Extract tax from total," and the calculator divides by 1 + the rate to isolate the pre-tax price and the exact tax paid.
- Pick the rate that matches your situation: the average combined rate is a good statewide estimate, but the state-only or maximum-local rate is more precise if you know the exact city or county.
Understanding Mississippi Sales Tax
Mississippi's state sales tax rate is 7.00%, and local jurisdictions add an average of 0.06% on top, bringing the typical combined rate to 7.06%. Rates vary by city and county — the highest combined rate in Mississippi can reach 8.00%.
Mississippi was the first US state to adopt a general sales tax, in 1930, during the Great Depression.
Mississippi also levies a state income tax, which shapes how much the state relies on sales tax revenue relative to other funding sources.
Groceries
taxed at a reduced state rate of 5% (cut from the full 7% rate effective July 1, 2025)
Largest city
Jackson
State income tax
Yes
Why Reverse Sales Tax Calculation Matters
Receipts, invoices, and marketplace payouts usually show only the tax-included total — not the pre-tax price. Reversing the calculation matters for bookkeeping (separating revenue from tax collected), expense reports (reimbursing only the pre-tax cost), and price comparisons (checking what an item actually costs before Mississippi's tax is applied). Because dividing by (1 + rate) is not the same as simply subtracting the rate from the total, doing this by hand is a common source of errors — the calculator above handles it exactly.
Mississippi Taxability at a Glance
🛒 Groceries
Reduced rate
👕 Clothing
Taxable
💊 Prescription drugs
Exempt
History & Rate Breakdown
Facing collapsing property and income tax collections during the Great Depression, Governor Martin Conner proposed and the legislature passed the nation's first general state sales tax in 1930 — a move so novel at the time that only 21 more states had followed suit by the end of the decade.
Mississippi's 7.06% average combined rate is mostly the 7% state rate itself, with only a thin sliver (0.06% average) of local add-ons — Mississippi permits very limited local option sales taxes compared to most states.
Where the Money Goes
As the trailblazer for sales tax nationally, Mississippi's system still funds a substantial share of the state general fund, and the 2025 grocery rate cut to 5% was one of the more significant recent changes aimed at easing the burden on lower-income households.
Business Use Case: Registering & Collecting Mississippi Sales Tax
A grocery retailer in Mississippi must now apply the reduced 5% rate to food items while charging the full 7% rate (plus any thin local add-on) on general merchandise — tracking two separate rates under the same roof since the 2025 grocery tax cut took effect.
Sales Tax Terms Glossary
Combined rate
The state sales tax rate plus any applicable local (city, county, or special district) rates — the actual rate charged at checkout in a given location.
Reverse sales tax
The process of working backward from a tax-included total to find the pre-tax price and the exact tax amount, using total ÷ (1 + rate) = pre-tax price.
Economic nexus
A sales threshold (in dollars, transaction count, or both) that obligates an out-of-state seller to collect and remit sales tax even without a physical presence in the state.
Marketplace facilitator
A platform (e.g. Amazon, Etsy, eBay) that collects and remits sales tax on behalf of third-party sellers under most states’ marketplace facilitator laws.
Real-World Example
A $500.00 purchase in Mississippi at the average combined rate of 7.06%:
- Tax amount: $500.00 × 7.06% = $35.30
- Total price: $500.00 + $35.30 = $535.30
Mississippi Sales Tax Compliance for Sellers
Remote and online sellers establish economic nexus in Mississippi once they exceed $250,000.00 in annual sales (no separate transaction-count test). Once nexus is established, a seller must register with the state, collect Mississippi sales tax at checkout, and file returns on the state's required schedule. Marketplace facilitators (Amazon, Etsy, eBay, Walmart) generally collect and remit on behalf of third-party sellers automatically.
Frequently Asked Questions — Mississippi Sales Tax
What is the sales tax rate in Mississippi?▾
Does Mississippi tax groceries?▾
Does Mississippi have a state income tax?▾
When do online sellers need to collect Mississippi sales tax?▾
How do I calculate Mississippi sales tax on a purchase?▾
How do I reverse Mississippi sales tax to find the price before tax?▾
What is the formula to back out sales tax from a receipt in Mississippi?▾
References & Sources
Rates last verified January 2026. Mississippi sales tax rates and thresholds can change — always confirm current figures with the Mississippi Department of Revenue before filing or invoicing. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.
Jordan Hayes
Verified AuthorLead Content Editor & Personal Finance Specialist
Jordan Hayes is a personal finance content strategist with 9+ years building educational finance and health resources. He has written and fact-checked over 200 personal finance guides covering mortgage amortization, retirement planning, tax strategy, and budgeting. His work applies IRS publications, Federal Reserve data, and peer-reviewed research to make complex calculations accessible.