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Mississippi · What a car really costs

Buying a car in Mississippi.

Mississippi charges sales tax (motor vehicle rate) of 5% statewide on vehicles, with no local add-on. A trade-in does reduce the taxable price, which is real money on the deal.

5%
Sales tax (motor vehicle rate) on a vehicle
Full credit
Trade-in reduces the taxable price
$9.00
Title fee
$30
Registration, typical new car
$425
Doc fee, capped by law

How the tax works.

Mississippi has no local sales tax on vehicles (a few cities have special tourism taxes that do not apply to vehicle sales).

Manufacturer rebates are included in the taxable gross proceeds (taxed before rebate).

The annual ad valorem tax, not the sales tax, is the large recurring cost for Mississippi owners.

5% on automobiles and light trucks (10,000 lbs or less); 3% on trucks over 10,000 lbs.
Trade-ins: Tax applies to the net difference when a motor vehicle is taken in trade (Miss. Code 27-65-17).

At the DMV.

FeeAmount
Title$9.00
Registration~$30
State privilege tax on private passenger vehicles $15 per year plus small state/county fees (roughly $30 in fees), collected with the county ad valorem tax, which is the dominant cost. Fast Track title $39 optional.
Annual value-based tax: {"name":"Motor vehicle ad valorem tax","rate":"Assessed at 30% of value times the county/municipal millage (often 100+ mills), minimum assessed value $100","notes":"Paid annually at registration; commonly $1,000 or more in year 1 on a $40,000 car."}

Leasing in Mississippi.

Lease tax applies to each monthly payment rather than to the full price of the car, so you pay it as you go.

Cities in Mississippi.

Pick your city for the exact combined rate where you register, plus what title and registration run there.

JacksonHinds CountyMeridianLauderdale CountyBiloxiHarrison CountyColumbusLowndes CountyGulfportHarrison CountyHattiesburgForrest CountyPascagoulaJackson CountyGreenvilleWashington CountyLaurelJones CountyTupeloLee County
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Questions.

How much is sales tax on a car in Mississippi?

5%. Mississippi applies one rate statewide on vehicles, so it does not change from city to city.

Does a trade-in lower the sales tax in Mississippi?

Tax applies to the net difference when a motor vehicle is taken in trade (Miss. Code 27-65-17).

What are title and registration fees in Mississippi?

Title is $9.00. State privilege tax on private passenger vehicles $15 per year plus small state/county fees (roughly $30 in fees), collected with the county ad valorem tax, which is the dominant cost. Fast Track title $39 optional.

Is the doc fee capped in Mississippi?

Yes, at $425. Mississippi Motor Vehicle Commission Regulation 8.1: document/service fee may not exceed $425 and must carry the statutory notice.

How is a lease taxed in Mississippi?

Tax applies to each monthly payment rather than the whole price of the car, so the tax is spread across the lease.

Where these numbers come from.

Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.