What is Mississippi's car sales tax rate?

Mississippi taxes motor vehicles at a reduced 5% rate, lower than its 7% general sales tax. The 5% rate applies statewide to the taxable purchase price, so there are no separate county or city automotive rates to add in most cases.

Does a trade-in reduce the tax in Mississippi?

Yes, for qualifying dealer transactions. Mississippi allows a trade-in credit so the 5% rate applies only to the difference between the new vehicle's price and the trade-in value. Enter the trade-in amount to lower the taxable base.

Is the rate really lower than the general sales tax?

Yes. Mississippi's general sales tax is 7%, but motor vehicles get a reduced 5% rate. Using the 7% general rate would overstate the tax, so this calculator defaults to the correct 5% automotive rate.

Where do I pay the car sales tax in Mississippi?

For a dealer purchase the dealer typically collects it; for a private-party (casual) sale you pay the 5% tax to the county tax collector when you title and register the vehicle. The tax is based on the documented purchase price.

Does this include registration and tag fees?

No. This calculator computes only the one-time 5% sales tax on the purchase. The flat registration fee, privilege license tax, and the annual county ad valorem property tax are separate — use the Mississippi Vehicle Registration Fee Calculator for those.

Mississippi Car Sales Tax Calculator

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Mississippi charges a reduced 5% sales tax on motor vehicles — lower than its 7% general rate — applied to the purchase price after any qualifying trade-in credit. This tool applies that rate and any taxable dealer fees to estimate what you’ll owe when you register the car.

How it works

The taxable amount is the price minus a qualifying trade-in plus any taxable dealer fee, and the rate is the flat 5% motor-vehicle rate:

taxable    = max(0, purchase price - trade-in credit) + taxable dealer fee
car tax    = taxable x 5%
total cost = purchase price + car tax + dealer fee

Unlike states that stack county and city automotive rates, Mississippi applies the single statewide 5% rate to vehicles. The trade-in credit is real for qualifying dealer transactions, so only the net difference is taxed.

Example and notes

A $30,000 car with a $10,000 trade-in: the taxable base is 30,000 - 10,000 = 20,000, and the tax is 20,000 x 0.05 = 1,000 dollars. This figure is sales tax only — add the flat registration fee, privilege license tax, and annual ad valorem property tax when budgeting the full cost at the DMV. Confirm whether your specific dealer documentation fee is taxable, since treatment can vary.