Mississippi Vehicle Sales Tax & Fees [+ Calculator]
Michael Collado is a car buying expert and has been a professional automotive writer since 2009. He’s written about dealership sales, vehicle reviews and comparisons, and service and maintenance for over 100 national automotive dealerships. Previously, Collado was a copywriter at the ad agency TBWA/Chiat/Day where he worked on brand campaigns for Nissan, ABC Television, Sony PlayStation, and Energizer. His recognition in the ad industry includes awards from Communication Arts and The Clios.
Collado has a Bachelor’s degree from the University of South Florida, with a major in Psychology and a minor in Marketing.
It’s exciting to buy a new (or new for you) car, but it’s also far from cheap.
Things like sales tax and other fees are often forgotten about in the excitement of making a new car purchase. But in Mississippi, you’ll need to be prepared to spend additional money on these extra costs.
Here’s what to expect when it comes to taxes and fees in the state of Mississippi.
Table of Contents
- How Much Is the Car Sales Tax in Mississippi?
- How to Calculate Mississippi Sales Tax on a Car
- Mississippi Car Sales Tax Calculator
- Do I Have to Pay Sales Tax on a Used Car?
- Car Sales Tax for Trade-Ins in Mississippi
- Car Sales Tax on Private Sales in Mississippi
- Tax on Rebates & Dealer Incentives
- Mississippi DMV/State Fees
- When Sales Tax Is Exempt in Mississippi
- Mississippi EV Rebates & Incentives
- Best Car Deals by Category
- Frequently Asked Questions
How Much Is the Car Sales Tax in Mississippi?
The statewide sales tax in Mississippi for car sales is 5%.
The 5% applies to cars and other private vehicles that have a gross vehicle weight of 10,000 lbs or less. A lower 3% tax is used for private vehicles over 10,000 lbs.
This figure is different from the 7% sales tax for other goods and services in Mississippi.
How to Calculate Mississippi Sales Tax on a Car
You can calculate the sales tax in Mississippi by multiplying the final purchase price by .05%.
For example, let’s say that you want to purchase a new car for $30,000, you would use the following formula to calculate the sales tax:
$30,000 x.05 = $1,500
This means that your sales tax is $1,500 on a $30,000 purchase price.
Calculate Car Sales Tax in Mississippi Example:
- Initial Car Price: $30,000
- Sales Tax Rate: 5%
- Trade-In Amount: $5,000
- Manufacturer Rebate: $2,000
- Dealer Rebate: $3,000
Sales Tax = ($30,000 - $5,000 - $3,000) * .05
Sales Tax = $1,100
Remember that the total amount you pay for a car (out the door price) not only includes sales tax, but also registration, and dealership fees.
Mississippi Car Sales Tax Calculator
Do I Have to Pay Sales Tax on a Used Car?
Yes, in Mississippi you must pay the car sales tax on a used vehicle. The sales tax rules remain the same whether the car is new or used.
Still, purchasing a used car is a wise choice for many. The overall price will be lower, which means you will pay less in sales tax than with a new vehicle.
Car Sales Tax for Trade-Ins in Mississippi
You don’t have to pay sales tax on trade-ins in Mississippi. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.
As an example, let’s say you are purchasing a new SUV for $35,000 and your trade-in is worth $10,000. You will subtract the trade-in value by the purchase price and get $25,000. Therefore, your car sales tax will be based on the $25,000 amount.
Car Sales Tax on Private Sales in Mississippi
You will have to pay sales tax on private sales in Mississippi.
For instance, if you purchase a truck from a private party, then you will pay 5% of that amount to the seller, and then the seller is responsible for paying the tax to the state.
Tax on Rebates & Dealer Incentives
You do not have to pay tax on dealer rebates in Mississippi. In other words, be sure to subtract the dealer rebate amount from the car price before calculating sales tax.
As an example, if you are purchasing a new car for $30,000 with a $5,000 rebate, you will pay sales tax on the $25,000 cost of the car.
However, the same does not apply to manufacturer rebates in Mississippi. You must pay tax on manufacturer rebates, or in other words, do not subtract the manufacturer rebate amount from the car price when calculating sales tax.
Mississippi DMV/State Fees
There are some other state and DMV fees associated with the purchase of a vehicle in Mississippi.
A few of these fees include:
- Registration Fee: $15
- Truck Registration Fee: $7.20
- Title Fee: $10
- Plate Transfer Fee: $0
Mississippi Dealership Fees
Dealerships apply extra fees, sometimes referred to as “doc fees,” with the sale of the car.
Though these fees vary based on the dealership, the average fee in Mississippi is $230, with no statewide limit on how much dealerships can charge.
When Sales Tax Is Exempt in Mississippi
There are a few exceptions to Mississippi’s car sales tax.
For example, if you are a 100% disabled veteran and a resident of Mississippi, you do not have to pay sales tax, and the cost of your car’s tags will only be $1.00.
The following are also non-taxable vehicle transfers:
- If you inherited the vehicle.
- You receive the vehicle from an individual’s revocable trust.
- You receive the vehicle as a gift from a spouse, parent, child, grandparent, or grandchild.
- You receive the vehicle in a divorce.
Mississippi EV Rebates & Incentives
Mississippi does not offer any state-specific incentives for EV buyers and owners. However, there are currently federal incentives for purchasing new EVs.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
Frequently Asked Questions
What is the sales tax on a car purchased in Mississippi?
The sales tax on a car purchased in Mississippi is 5%, for both new and used cars.
Do I have to pay sales tax on a used car in Mississippi?
Yes, the sales tax on a used vehicle is 5% in Mississippi.
Do I have to pay sales tax on a gifted car in Mississippi?
You do not have to pay sales tax if the vehicle is gifted to you from a spouse, parent, child, grandparent, or grandchild.
How much is registration in Mississippi?
Registration in Mississippi is $15.
Does a trade-in reduce the sales tax in Mississippi?
Yes, you can reduce how much you pay in sales tax by including your trade-in at the time of purchase.