Mississippi Contractor Sales Tax 2026

Mississippi sales tax rate for contractors

• Combined rate: 7% (3.5% contractor tax on total contract)
• Construction labor taxable: YES - labor is taxable
• Tax authority: Mississippi Department of Revenue

How Mississippi treats contractor labor

MISSISSIPPI TAXES CONTRACTOR LABOR. 3.5% contractor tax applies to TOTAL contract price (labor + materials). Materials separately exempt at 7% if contractor remits 3.5% contractor tax.

Mississippi-specific rules

One of the most unusual systems - 3.5% contractor tax on TOTAL contract price replaces normal sales tax. Statute rewritten in 2014.

Mississippi mechanics lien rights

Beyond sales tax, Mississippi contractor billing must respect the mechanics lien deadline of 90 days from last work. Preliminary notice: Pre-lien notice required for subcontractors before filing.

Mississippi contractor licensing

Mississippi State Board of Contractors - required for licensed work. $200 + exam. Board: https://www.msboc.us.

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Mississippi contractor resources by trade

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