The Mississippi car sales tax is 5% of the purchase price for automobiles and light trucks weighing 10,000 pounds or less. Motorcycles are taxed at 7%, and heavy trucks over 10,000 pounds are taxed at 3%. If you buy from a Mississippi dealer, the dealer collects the tax. If you buy from a private seller or an out-of-state dealer, you pay the tax at your county tax collector’s office when you title and register the vehicle, which must happen within 30 business days.
Rates by Vehicle Type
Mississippi applies three different rates depending on what you’re buying:1Mississippi Department of Revenue. Sales Tax Rates
- Automobiles and light trucks (10,000 lbs. or less): 5%
- Heavy trucks over 10,000 lbs., aircraft, semitrailers, mobile homes, and modular homes: 3%
- Motorcycles, mopeds, boats, ATVs, trailers, and similar equipment: 7%
The 7% rate on motorcycles and ATVs catches buyers off guard. If you budgeted based on the car rate, you’ll see a meaningful difference at the register.
What the Tax Is Calculated On
Trade-Ins Reduce the Taxable Amount
If you trade in a vehicle, you owe tax only on the difference between the new vehicle’s price and the trade-in value. Buy a $30,000 car and trade in a vehicle worth $10,000, and you pay 5% on $20,000.2Justia. Mississippi Code 27-65-201 – Tax Upon Sale or Use of Motor Vehicles
Manufacturer Rebates Do Not
Manufacturer rebates are treated as separate from the purchase price, so the tax is calculated on the full price before the rebate is applied. A $2,000 rebate on a $35,000 car still means you pay 5% on $35,000. Dealer discounts negotiated off the sticker do lower the taxable amount, because they change the actual transaction price.
Private Sales and Out-of-State Purchases Use “True Value”
Buying from a private seller or from outside Mississippi does not avoid the tax. Both carry a 5% rate, calculated on the vehicle’s “true value” as set by the Department of Revenue’s official assessment schedule, or the actual purchase price, whichever is higher.2Justia. Mississippi Code 27-65-201 – Tax Upon Sale or Use of Motor Vehicles Writing $3,000 on a bill of sale for a friend’s car will not lower the tax if the DOR schedule says the vehicle is worth more.
Motor vehicles are specifically excluded from the general rule that occasional sales between individuals aren’t taxable. Almost every other type of personal property sold person-to-person falls outside the sales tax. Cars are the exception.3Cornell Law Institute. 35 Mississippi Code R 4-03-02-101 – Isolated or Occasional Sales
No Credit for Tax Paid to Another State
Mississippi does not credit sales tax you already paid to the state where you bought the car. If you buy from a Tennessee dealer and pay Tennessee sales tax at the point of sale, you’ll still owe the full Mississippi use tax when you title and register the vehicle at home. Effectively, you pay twice. Plan ahead before signing anything at an out-of-state dealership.
Family Transfers That Are Exempt
Certain transfers between close family members are fully exempt from the tax under Mississippi Code 27-65-201:2Justia. Mississippi Code 27-65-201 – Tax Upon Sale or Use of Motor Vehicles
- Between spouses
- Between parent and child, either direction
- Between grandparent and grandchild, either direction
- Between siblings
Two conditions matter. The vehicle must already be registered or licensed in the transferring family member’s name, and if a licensed dealer handles the transaction the exemption disappears and the dealer collects tax as a normal sale.4Cornell Law Institute. 35 Mississippi Code R 4-03-02-104 Gifts to friends or unrelated people are not exempt; the 5% tax still applies based on assessed value.
Where and How You Pay
When you buy from a Mississippi dealership, the dealer collects the sales tax and submits the title application for you. You take the yellow copy of the title application to your county tax collector to finish registration.5Mississippi Department of Revenue. Motor Vehicle Frequently Asked Questions
When you buy from a private seller or an out-of-state dealer, you pay the tax yourself at the county tax collector when you apply for a Mississippi title and registration. Bring the purchase invoice for an out-of-state dealer purchase, or the signed title for a private sale. A vehicle coming from another state also requires an odometer disclosure statement.5Mississippi Department of Revenue. Motor Vehicle Frequently Asked Questions
The 30-Day Deadline and the $250 Penalty
You have 30 business days after buying a vehicle to register it with your county tax collector. If you bought outside your home county, you get 48 hours to transport the vehicle home, and the 30-day clock starts from there.5Mississippi Department of Revenue. Motor Vehicle Frequently Asked Questions
Miss the deadline and you owe standard late penalties plus a flat $250 surcharge.6Mississippi Department of Revenue. Motor Vehicle Registration and Renewal You can’t get a license plate without paying the sales tax, so registration and tax payment happen together at the county office.
The Sales Tax Isn’t the Only Vehicle Tax
Every year at registration renewal, you also owe ad valorem (property) tax on the vehicle. The Department of Revenue sets vehicle values statewide, and your county applies its own millage rate. The assessed value is 30% of the vehicle’s true value, multiplied by the local millage. Because the value depreciates, a new car carries a noticeably higher annual bill than the same model a few years later. Ad valorem revenue goes to your county, city, and school district, not the state.
Deducting the Sales Tax on Your Federal Return
If you itemize on your federal return, you can deduct the Mississippi sales tax you paid on the vehicle. The IRS lets itemizers choose between deducting state income tax or state sales tax, and a big vehicle purchase can tip the sales tax option ahead for the year.7Internal Revenue Service. Use the Sales Tax Deduction Calculator
Vehicles qualify as “specified large purchases,” so the sales tax on the car is added on top of your general sales tax deduction rather than absorbed into it. For 2026, the combined deduction for state and local taxes is capped at $40,400, with a phase-down for modified adjusted gross income above $505,000. The IRS Sales Tax Deduction Calculator will estimate the number for your return.