Mississippi Sales Tax Exemptions / Tax Free Items Mississippi: Sales Tax Handbook

Mississippi:

What purchases are exempt from the Mississippi sales tax?

While the Mississippi sales tax of 7.00% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in Mississippi.

Sales Tax Exemptions in Mississippi

In Mississippi, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers.

Several examples of exemptions to the sales tax are some kinds of medical devices, certain prescription medications, and some items that are used in the manufacturing business.

Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for Mississippi:


Clothing

  7.%

Groceries

  7.%

Prepared Food

  7.%

Prescription Drugs

  7.%

OTC Drugs

  7.%

These categories may have some further qualifications before the special rate applies, such as a price cap on clothing items. Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate.

Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a "grocery":


Is candy taxable in Mississippi? Candy IS considered a grocery in Mississippi
Is soda taxable in Mississippi? Soda IS considered a grocery in Mississippi

Are services, shipping, installation, etc taxable in Mississippi?

The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. To learn more about how these transactions, and other more complicated situations, are subject to the Mississippi sales tax see the Mississippi sales taxability FAQ page.


Other tax-exempt items in Mississippi

This table lists a number of additional categories of goods and services that are exempt from Mississippi's sales tax. For a list that also shows taxable items, see the list of taxable and nontaxable items in Mississippi.

Category Exemption Status
Amazon Purchases
Products on Amazon.com EXEMPT
Manufacturing and Machinery
Raw Materials EXEMPT
Medical Goods and Services
Medical Devices EXEMPT *
Medical Services EXEMPT
Newspapers and Magazines
Newspapers EXEMPT *
Occasional Sales
General Occasional Sales EXEMPT
Optional Maintenance Contracts
Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts EXEMPT
Pollution Control Equipment
General Pollution Control Equipment EXEMPT *
Services
Janitorial Services EXEMPT
Transportation Services EXEMPT
Trade-Ins
General Trade-Ins EXEMPT
Vending Machine Sales
Food EXEMPT *

* See notes in category taxability page for details



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Source: http://www.salestaxhandbook.com/mississippi/sales-tax-exemptions