Mississippi Local Tourism, Restaurant and Lodging Taxes: What Cities and Counties Add
Mississippi Local Tourism, Restaurant and Lodging Taxes: What Cities and Counties Add
If you run a restaurant, rent rooms, or sell prepared meals in Mississippi, the state sales tax is only part of what you may have to collect. Many cities and counties add their own tourism, economic development, restaurant, and lodging taxes on top. Most of these were created by one-off legislative acts for a named jurisdiction, and many carry repeal dates. Two towns a few miles apart can charge different rates, and one levy can expire while the next one continues.
This guide explains how the layers fit together, shows examples from the Department of Revenue list, and walks through how to confirm the rate for your location before you set prices or open your register.
Disclaimer: This is informational content, not legal or tax advice. Rates, repeal dates, and local ordinances change, sometimes between legislative sessions. Confirm every figure with the Mississippi Department of Revenue and your city or county clerk, and talk to a CPA or attorney about your specific situation.
The state layer: a 7% sales tax with no county add-on
The Mississippi state sales tax rate is 7%. Mississippi has no county sales tax, so no county adds a percentage to the state rate. City sales levies apply only in Jackson and Tupelo. For most retail sales elsewhere in the state, the rate you collect is the 7% state rate. The local restaurant and lodging levies described below are separate from that and apply only in the places that adopted them.
If you are searching for a Mississippi sales tax rate by city, the state rate is the same everywhere. The difference comes from the local levies that some cities and counties add. Confirm the current combined rate for your address with the Department of Revenue rather than relying on a third-party rate table that may be out of date.
Why local restaurant and hotel taxes vary
Cities and counties can levy tourism, economic development, restaurant, and lodging taxes, but each levy usually traces back to a specific act of the Legislature. The Department of Revenue publishes a Tourism and Economic Development Taxes list, and that list changes with each legislative session. A levy can be added, extended, or allowed to expire. The 2026 list is the reference point, so check the current version before you rely on any row.
The practical result is that the tax is tied to the exact address of your business, not to the name of your region. A restaurant in one city may owe a 2% levy while a restaurant a few miles away owes nothing extra.
Examples from the Department of Revenue list
The table shows examples as they appear on the 2026 list. It is not a complete list of Mississippi jurisdictions, and it does not replace the Department of Revenue page.
| Jurisdiction | What the levy covers | Repeal date |
|---|---|---|
| DeSoto County | 2% on restaurants, hotels and motels | No repeal date listed |
| Southaven | 1% on hotel and motel income; 1% restaurant tax | July 1, 2030 |
| Olive Branch | 1% on hotel and motel rooms | July 1, 2029 |
| Horn Lake | $2 per overnight room | July 1, 2030 |
| Tupelo | 2% on hotel rooms and restaurants | Not listed here; check the DOR list |
| Oxford | 2% on rooms; 2% on restaurants | Not listed here; check the DOR list |
| Starkville | 2% restaurant tax; 2% hotel tax | Restaurant tax June 30, 2030; hotel tax July 1, 2027 |
| Jackson | 1% restaurant and hotel taxes; 3% on hotel rooms; $0.75 per occupied room | Not listed here; check the DOR list |
Jackson's entry stacks a percentage on restaurant and hotel sales, a higher percentage on hotel rooms, and a flat charge per occupied room. Read the full Department of Revenue entry before you add the pieces together.
How the lodging layers stack
For lodging, the state sales tax on hotel and motel stays is 7%. A city or county lodging levy comes on top of that. Starkville, for example, lists a 2% hotel tax with a July 1, 2027 repeal date, and a 2% restaurant tax with a June 30, 2030 repeal date.
The tax base matters. Some listings describe a percentage of hotel and motel income, others describe a percentage of room rentals, and Horn Lake uses a flat amount per overnight room. Confirm with the Department of Revenue whether a given levy applies to the room charge alone or to total guest charges.
For illustration only, suppose a 2% local hotel levy applied to the full charge for a $100 room in a city that also has the 7% state rate. The guest would owe $7.00 in state tax and $2.00 in local tax, or $9.00 in total tax on that room. A flat $2 per overnight room levy would add $2.00 to that night regardless of the room price. These are arithmetic examples, not a statement of how any specific city applies its levy.
How the restaurant layer works
Restaurant levies are typically a percentage of prepared-meal sales in the city or county that adopted them. The examples above run from 1% in Southaven and Jackson to 2% in DeSoto County, Tupelo, Oxford, and Starkville.
Before you set up your point-of-sale system, confirm three things with the Department of Revenue. First, whether the restaurant levy in your city is in effect on the date of sale. Second, whether it is reported on the same return as your state sales tax. Third, whether any exemption or threshold applies to your type of sale.
Register first, then collect
Mississippi does not issue a single statewide business license. Registration happens in separate layers, and each one serves a different purpose:
- Entity formation: An LLC files a Certificate of Formation (Form F0100) with the Mississippi Secretary of State. The filing fee is $50. This registers the entity. It is not a license.
- Assumed name: If you operate under a name other than your legal name, file a Fictitious Business Name Registration (Form F0070) with the Secretary of State for $25. It is filed with the state, not with the county.
- Sales tax permit: Register with the Department of Revenue. The permit is a tax registration and has no fee, although a bond may be required for applicants with no permanent Mississippi location.
- City privilege license: Each city, town, or village issues its own privilege license under Miss. Code 27-17. This guide does not list city fee amounts, so confirm them with your city clerk.
- County license: Counties license only businesses located outside municipal limits.
- Industry licenses: Regulated trades and professions are licensed by the relevant state board, not by the Secretary of State or the Department of Revenue.
The Secretary of State's Business Services Division is the place to start for entity and name filings at sos.ms.gov/business-services. Online filings are processed quickly, and most documents paid for online are filed immediately or within 24 hours.
Common mistakes
- Assuming a county sales tax exists. Mississippi has none. Only the 7% state rate applies to general retail sales everywhere, and city sales levies apply only in Jackson and Tupelo.
- Treating a repeal date as permanent. Levies can be extended by the Legislature. Check the list each session.
- Applying one city's levy to a neighboring city. Rates are set by each jurisdiction, so the address on your permit matters.
- Confusing registration with licensing. A Secretary of State filing creates or registers your entity. It does not authorize you to operate in a city.
- Missing the city privilege license. Each city issues its own, and the state registration does not replace it.
Your step-by-step checklist
- Confirm whether your location is inside city limits. City privilege licenses and city levies apply inside city limits, and county licensing applies only outside them.
- Pull the current Tourism and Economic Development Taxes list from the Mississippi Department of Revenue and find your city and county.
- Record each levy, its tax base, its rate, and its repeal date if one is listed.
- Register for a sales tax permit with the Department of Revenue. The registration page is at the DOR sales and use tax registration page.
- Ask your city clerk for the privilege license application and any instructions for filing a local levy.
- Set a calendar reminder for each repeal date, and recheck the DOR list after every legislative session.
What to confirm before you price
Some details in this guide need confirmation for your specific location. Use the table below to know who answers each question.
| Question | Confirm with |
|---|---|
| Is the local levy in effect today, and does it have a repeal date? | Mississippi Department of Revenue |
| Does a lodging levy apply to room charges or to total lodging income? | Mississippi Department of Revenue |
| Does the restaurant levy apply to all prepared-meal sales? | Mississippi Department of Revenue |
| What is the privilege license fee in my city? | City clerk |
| Is my address inside or outside city limits? | City clerk |
Where to get help
The Mississippi Small Business Development Center Network is hosted by the University of Mississippi and has 19 locations statewide. It can help with startup questions at mississippisbdc.org.
For complex situations, such as multiple locations in different cities, a hotel with several revenue streams, or a restaurant that also sells retail goods, a CPA can model the tax by location and an attorney can advise on entity structure and lease terms. This guide is a starting point, not a substitute for that advice.
Local levies change faster than most guides can keep up. Verify the rate on the Department of Revenue page before you publish a price, and recheck the list after each legislative session.