Does Mississippi charge sales tax on services?
by August 30, 2023
The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.
Here’s what merchants need to know about taxing services in the state of Mississippi, which has a state sales tax rate of 7%.
Does Mississippi charge sales tax on services?
Many services are taxable in Mississippi, including the following:
- Repairs of tangible personal property
- Rental or lease of personal property like motor vehicles or equipment
- Charges for admission to an amusement, sport, or recreation
- Providing taxable services such as pest control services, plumbing, electrical work, heating and air conditioning work, computer software services, dry cleaning and parking lots
- Rental of accommodations in hotels, motels and campgrounds
- Contracting
- Air conditioning installation or repairs
- Automobile, motorcycle, boat or any other vehicle repairing or servicing
- Billiards, pool or domino parlors
- Bowling or ten pin alleys
- Burglar and fire alarm systems or services
- Car washing-automatic, self-service or manual
- Computer software sales and services
- Cotton compresses or cotton warehouse
- Custom creosoting or treating, custom planning, custom sawing; custom meat processing
- Electricians, electrical work, wiring, all repairs or installation of electrical equipment
- Elevator or escalator installing, repairing or servicing
- Film developing or photo finishing
- Foundries, machine or general repairing
- Furniture repairing or upholstering
- Grading, excavating, ditching, dredging or landscaping
- Hotels, motels, tourist courts or camps, trailer parks
- Insulating services or repairs
- Jewelry or watch repairing
- Laundering, cleaning, pressing or dyeing
- Marina services
- Mattress renovating
- Office and business machine repairing
- Parking garages and lots
- Plumbing or pipe fitting
- Public storage warehouses
- Radio or television installing, repairing or servicing
- Refrigerating equipment repairs
- Services performed in connection with geophysical surveying, exploring, developing, drilling, producing, distributing, or testing of oil, gas, water and other mineral resources
- Shoe repairing
- Storage lockers
- Telephone answering or paging services
- Termite or pest control services
- Tin and sheet metal shops
- T.V. cable systems, subscription TV and other similar activities
- Vulcanizing, repairing or recapping of tires or tubes
- Welding
- Woodworking or woodturning shops
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be subject to state sales tax. For an in-depth look at Mississippi sales tax, TaxJar’s guide to sales tax in Mississippi and the Mississippi Department of Revenue has more details.
How to stay compliant with sales tax when you sell services
Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.
If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
