Last checked Nov 10, 2026
Buying a car in Mississippi
The tax you will pay, whether your trade-in lowers it, what the dealer may charge for paperwork, and where to title and register. Taken from official Mississippi sources.
- State tax on vehicles
- 5%
- Trade-in lowers tax
- Yes
- Doc fee limit
- $425
- Deadline to title or register
- 30 days
details below
Sales tax on a car in Mississippi
Mississippi charges a state sales tax of 5% on vehicle purchases.
The 5% rate applies to cars, vans, buses, and trucks of 10,000 pounds or less; heavier trucks used to carry property are taxed at 3%. Sales tax paid to another state is not credited toward Mississippi tax when the vehicle is registered.
Does a trade-in lower the tax?
The 5% tax is charged on the net purchase price after dealer discounts and trade-ins.
Example, state tax only. On a $30,000 car with a $10,000 trade-in, the taxable amount is $20,000, so the state tax is about $1,000. Without the trade-in it would be $1,500. Local taxes and fees are extra.
Dealer doc fees in Mississippi
Mississippi Motor Vehicle Commission Regulation 8.1 says a dealer document or service fee may not exceed $425. The fee must be charged to all buyers and shown as a separate itemized charge on the buyer's order.
Whatever the rule, the fee is part of your out-the-door price. Ask for it in the written quote and negotiate the total, not the line. See dealer fees explained.
Title and registration
Titles and registrations are handled by the Mississippi Department of Revenue. The Department of Revenue says a newly purchased vehicle must be registered within 30 business days of the purchase date. Vehicles of 10,000 pounds or less are registered at the county Tax Collector's office.
Also worth knowing
- The cost of a car tag includes registration fees, ad valorem taxes, and any sales or use tax due, and is calculated by the county Tax Collector.
- If the vehicle was bought outside the buyer's home county, the buyer has 48 hours to transport it home before the registration period begins.
Sources
- Mississippi Department of Revenue: Motor Vehicle Frequently Asked Questions (dor.ms.gov)
- Mississippi Department of Revenue: Sales Tax Rates (dor.ms.gov)
- Mississippi Motor Vehicle Commission: Regulation 8, Motor Vehicle Dealer Document/Service Fee (mmvc.ms.gov)
Last checked Nov 10, 2026; next review by Feb 10, 2027. This page explains how the rules generally work and is not tax or legal advice. Rules change, so confirm with the state. Report an error.
Concierge
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Tell us the car you want. A person finds it, checks it, negotiates the out-the-door price in writing, and lines up the paperwork. You approve every step.