Mississippi Statewide Rule
Mississippi Taxes Short-Term Rentals at 7% State Sales Tax
Key Facts
- Statute
- Miss. Code Ann. Section 27-65-23
- State rate
- 7% of gross rental income
- Applies to
- Transient guest room rentals
- Enforcing agency
- Mississippi Department of Revenue
- Requirement
- Sales tax permit required
Summary
Mississippi treats short-term rental stays like hotel rooms. Section 27-65-23 imposes a 7% state sales tax on the gross income from renting rooms to transient guests, so Airbnb and VRBO hosts must register with the Department of Revenue and collect it on every booking.
Upon every person engaging or continuing in any of the following businesses or activities there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income of the business: ... Hotels (as defined in Section 41-49-3), motels, tourist courts or camps, trailer parks
Full Breakdown
Under Miss. Code Ann. Section 27-65-23, anyone furnishing rooms to transient guests, including Airbnb and VRBO hosts, owes a tax equal to 7% of gross rental income, the same rate charged to hotels and motels. The Mississippi Department of Revenue administers it: you register for a sales tax permit, collect the 7% from guests, and remit it. Marketplace facilitators that process bookings collect and remit on hosts' behalf. Certain resort and tourism districts add separate local room levies on top, but the 7% state rate applies statewide to every transient stay.
Violations & Penalties
Renting to transient guests without a sales tax permit or failing to remit the 7% exposes hosts to assessed back taxes, interest, and penalties under Title 27, and the Department of Revenue can file liens to collect.
Frequently Asked Questions
Do Airbnb hosts in Mississippi pay state sales tax?
Does the booking platform collect the tax for me?
Are there taxes beyond the 7% state rate?
Sources
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