AutoTaxCalculatorAuto sales tax in Mississippi: 5% after trade-in
Mississippi car sales tax = 5% × (price − trade-in). Manufacturer rebates don't reduce it. A $32,000 car with a $7,000 trade-in owes $1,250 in sales tax.
The Mississippi Department of Revenue sets the rate by vehicle type:
| Vehicle | Rate |
|---|---|
| Cars, vans and buses | 5% |
| Trucks under 10,000 lbs gross vehicle weight | 5% |
| Trucks over 10,000 lbs used to carry property | 3% |
The 5% applies to the net purchase price after dealer discounts and trade-ins, whether the car is new or used. Because it's based on the price after trade-in, trading in your old car at the dealer usually saves more tax than selling it yourself.
Rebates and dealer discounts
Mississippi treats discounts and rebates differently. A dealer discount lowers the price you're taxed on. A manufacturer's rebate doesn't, even if the dealer applies it at signing. On a $32,000 car with a $2,000 factory rebate, you're still taxed on $32,000 (before any trade-in). That makes it worth asking whether a deal is a dealer discount or a factory rebate.
Sales tax on cars in MS bought from a private seller
Mississippi taxes private sales of vehicles less than ten years old. The county Tax Collector collects the tax when you title and tag the car. The tax isn't based on what you paid: it's 5% of a pre-determined value the state assigns to that kind of car. A great price from a private seller doesn't lower the tax, and a high price doesn't raise it.
Private sales of vehicles ten years old or older aren't subject to sales tax. You still pay the title fee, the tag and ad valorem tax.
Buying out of state
If you buy from an out-of-state dealer, you pay Mississippi use tax at the same rate when you title the car at your county Tax Collector. Bring a copy of the purchase invoice. Mississippi does not credit sales tax you paid to another state. If an out-of-state dealer charges you its state's tax on a car you're registering in Mississippi, you may pay twice, so sort it out before you sign.
What else you pay at the Tax Collector
Your total at the county office has four parts besides the sales tax:
| Item | Amount |
|---|---|
| Title fee | $9.00 |
| Registration fee, first time | $14.00 |
| Registration fee, renewal | $12.75 |
| Privilege tax, passenger vehicle | $15.00 |
| Ad valorem tax | Based on the car's value and your county and city millage |
The ad valorem tax is usually the largest part of a Mississippi car tag, especially on a newer car. It depends on the vehicle's assessed value and the tax rates where you live. For eligible vehicles the state's Legislative Tag Credit reduces it. You lose that credit if your renewal reaches the maximum 25% late penalty.
Worked examples
$32,000 SUV from a Jackson dealer with a $7,000 trade-in
- Net price: $32,000 − $7,000 = $25,000
- Sales tax: $25,000 × 5% = $1,250.00
- Title $9 + registration $14 + privilege tax $15 = $38
- Total before ad valorem: $1,288.00
Private sale: a six-year-old car for $9,000
- The vehicle is under 10 years old, so sales tax is due
- If the Tax Collector's value for that model is $11,000: $11,000 × 5% = $550, even though you paid $9,000
- The same sale of an 11-year-old car would owe no sales tax, just the $38 in fees plus ad valorem
Deadlines and penalties
You have 30 business days from the purchase date to register the vehicle. If you buy outside your home county, you have 48 hours to get the car home, and the 30-business-day clock still applies. Dealers can issue a 7-day drive-out tag. New residents have 30 days to register. Missing that deadline adds a $250 penalty on top of the normal late penalties.
Frequently asked questions
Is Mississippi automobile sales tax the same in every county?
The Department of Revenue lists the vehicle rate as 5%, or 3% for heavy property-carrying trucks. What changes by county and city is the ad valorem tax on your tag, not the sales tax.
Can I move my old plate to my new car?
No. Mississippi doesn't let you move a plate to another vehicle. You can, however, transfer the unused part of your registration to a new Mississippi registration by turning in the old tag at the Tax Collector's office.
Do disabled veterans pay Mississippi tag taxes?
Qualified disabled veterans can register up to two vehicles and one motorcycle free of ad valorem and privilege taxes, paying $1 per plate.
Sources
- Mississippi Department of Revenue: Motor vehicle frequently asked questions
- Mississippi Department of Revenue: Business tax FAQ (private vehicle sales)
This calculator gives an estimate. Your county Tax Collector calculates the final amount. How we calculate