Mississippi Short-Term Rental Laws: State Tax, City Permits and Coastal Rules
Mississippi Short-Term Rental Laws: State Tax, City Permits and Coastal Rules
If you plan to rent a house, cabin or apartment to vacation guests in Mississippi, start with one fact: the state does not issue a short-term rental license. The rules that control your rental come from the city, town or village where the property sits, and the tax questions have state and local layers that the state has not fully spelled out. This guide covers what is confirmed as of 2026, where the gaps are, and which agency to contact for each one. It is the first place to look for a mississippi short term rental tax answer, and the last word should come from the agencies named below.
Disclaimer: This is informational content, not legal or tax advice. Ordinances, fees and tax rules change. Talk to a qualified Mississippi attorney and a CPA before you buy, list or register a rental, especially if you hold it in an LLC or plan to rent on the Gulf Coast.
No statewide short-term rental license
As of 2026, no statewide short-term rental license was found. Mississippi issues no single general business license. Two filings people often confuse with a license are actually different things:
- Entity registration: Forming an LLC with the Secretary of State is a registration, not a license. The Certificate of Formation costs $50.
- Sales tax permit: Businesses making retail sales register with the Department of Revenue for a sales tax permit. The Department describes it as a permit for the privilege of operating a business in Mississippi, and there is no fee for it. A bond may be required for applicants with no permanent Mississippi location.
What actually governs a rental is local. Under Miss. Code 27-17, every city, town and village issues its own privilege license. Counties license only businesses outside municipal limits. A cabin in an unincorporated county area and a townhouse inside a city limit can face completely different rules, so identify the city or county before you do anything else. The Secretary of State's Business Services Division handles entity filings, not local permits.
State sales tax: 7% on hotels, with an open question for rentals
Mississippi levies a 7% state sales tax. The tax on hotels, motels and tourist courts is set in Miss. Code 27-65-23, and the Department of Revenue rate page confirms the 7% rate. That page does not say whether the tax reaches Airbnb-style or other private short-term rentals. Do not assume either answer.
Call or write the Department of Revenue and ask in writing whether your specific rental activity is a taxable lodging sale. Keep the reply in your records. Ask the same question about any rental that offers meals, cleaning or other services, because those add-ons can change the analysis.
Two related points:
- City sales tax: The state rate has no county add-on. City sales tax levies apply only in Jackson and Tupelo, so outside those two cities the 7% state rate is the only sales tax rate, subject to the rental question above.
- Local tourism taxes: Tourism and lodging taxes are separate from sales tax, they vary by city and county, and this guide did not settle a statewide answer. Check with the city clerk and the convention and visitors bureau that serves your location.
Local rules: a patchwork of permits, caps and hearings
Local rules differ widely. Some cities cap the number of residential permits. Some require a manager who lives nearby. Some require public hearings before a new permit issues, and some treat short-term rentals as a conditional use in residential zones. The table covers the cities covered here. It is not a complete list of Mississippi cities.
| City | Permit or license | Key rule | Renewal |
|---|---|---|---|
| Ocean Springs | $501 per permit, plus a privilege license | Residential permits capped at 115. Commercial and downtown overlay permits are uncapped. New residential permits require Planning Commission and Board hearings. | Annual |
| Hattiesburg (Ord. 3376, form dated May 15, 2025) | $25 application, $130 license, $50 fire inspection, $25 zoning, $20 privilege tax | Residential permits capped at 2.5% of residential structures. Manager must live in Forrest or Lamar County. | $100, $50 and $20 (listed charges) |
| Pearl | Conditional use under Zoning Sec. 413 | Airbnb and bed and breakfast uses require an innkeeper present. | Confirm with the city |
| Biloxi, Pass Christian, Bay St. Louis | Confirm with the city | Check the current city ordinance and fee schedule. | Confirm with the city |
Ocean Springs
Ocean Springs is the most tightly structured example in this guide. Permits cost $501 each and renew annually. The residential cap is 115 permits, but commercial and downtown overlay permits are not capped. A new residential permit goes through Planning Commission and Board hearings, and you also need a privilege license.
Because the residential cap is fixed, confirm with the city whether the count has room before you buy a home you intend to permit as a residential rental. A hearing process also adds time to your timeline, so do not plan an opening date that depends on a permit being approved quickly.
Hattiesburg
Hattiesburg's ordinance (Ord. 3376, with a form dated May 15, 2025) caps residential permits at 2.5% of residential structures. It also requires a manager who lives in Forrest or Lamar County. Out-of-town owners should either confirm they qualify or budget for a local manager before they sign a purchase agreement.
The listed charges are $25 for the application, $130 for the license, $50 for a fire inspection, $25 for zoning and $20 for the privilege tax. Renewal is listed at $100, $50 and $20. Confirm each charge with the city, since the form date and the fee schedule may not match what you see on a current website.
Pearl
Pearl treats Airbnb-style and bed and breakfast uses as a conditional use under its zoning code (Sec. 413), and the operation must have an innkeeper present. That requirement rules out a pure absentee model in Pearl, so ask the city planning office how it defines an innkeeper before you design your management plan.
Biloxi, Pass Christian and Bay St. Louis
This guide did not confirm current permit rules or fees for Biloxi, Pass Christian or Bay St. Louis. Treat any figure you find elsewhere for these cities as unconfirmed. Ask each city clerk for the current ordinance and the current fee schedule in writing, and confirm whether any zoning or overlay district applies to the parcel you plan to rent.
Business setup costs that matter for a rental
If you hold the rental in an LLC or operate under a trade name, these state filings apply:
- LLC Certificate of Formation (Form F0100): $50. Online filings are normally approved immediately. There is no paid expedite tier for formation filings.
- LLC annual report (Form F0108): No fee. Due April 15 each year, may be filed on or after January 1, and must be filed online. Failure to file can lead to administrative dissolution.
- Fictitious business name (Form F0070): $25, filed with the Secretary of State, not the county. Use the state fee schedule to confirm before you file.
- Name reservation: $25 for 180 days, if you need time before forming the LLC.
Before forming an LLC, search the name in the Secretary of State business search. An LLC name must include "limited liability company," "L.L.C." or "LLC" under Miss. Code 79-29-109, and it must be distinguishable from existing registered names.
How rental income is taxed
An LLC with more than one member taxed as a partnership, or a single-member LLC treated as a disregarded entity, is a pass-through entity. It reports income on the members' Mississippi returns. An LLC that elects corporate treatment pays Mississippi corporate income tax (0% on the first $5,000 of taxable income, 4% on the next $5,000 and 5% above $10,000) plus the franchise tax. The franchise tax is $0.50 per $1,000 of capital above $100,000 for tax year 2026, with a $25 minimum. It steps to $0.25 for 2027 and is repealed effective January 1, 2028. The franchise tax applies to corporations, not to an LLC taxed as a partnership.
For individuals, the personal income tax for tax year 2026 is 0% on the first $10,000 of taxable income and 4% above that. The top rate steps down to 3.75% for tax year 2027. Your rental income's tax result depends on your full return, so run the numbers with a CPA.
Questions to confirm before you list
- Department of Revenue: Is my rental a taxable lodging sale under Miss. Code 27-65-23? Ask in writing. Register for the sales tax permit at the Department's registration page.
- City clerk or planning office: Do I need a privilege license, a zoning permit or a conditional use approval? What is the current permit cap status, fee schedule, renewal date and manager requirement?
- City or county tourism office: Is there a local lodging or tourism tax, and who collects it?
- Secretary of State: Is my LLC or trade name available, and have I filed the annual report on time?
- Attorney and CPA: How do the answers above affect my ownership structure, insurance and tax position?
If you need free advice on the business side, the Mississippi Small Business Development Center Network is hosted by the University of Mississippi and operates 19 locations statewide. Its advisors can help you organize the filings above, although they do not give legal or tax advice.
Bottom line
Mississippi has no statewide short-term rental license, so your permit questions start with the city or county. The state's 7% sales tax applies to hotels and motels, but whether it reaches your rental must be confirmed in writing with the Department of Revenue. Pull the local ordinance before you buy, confirm every fee and cap with the city, and have a Mississippi attorney and CPA review the structure before you list.