States · Mississippi

Mississippi Vehicle Registration Cost

Mississippi charges only 5% state sales tax on vehicles — significantly LOWER than the 7% standard retail sales tax — with NO local additions. Combined with full trade-in credit, MS has one of the lowest vehicle purchase taxes in the South. Annual ad valorem tax is assessed at 30% of MSRP × county millage (typical 80-130 mills), partially offset by a 6.5% legislative tag credit. Net effective rate is roughly 1.05% on full MSRP statewide, varying by county. Registration is $14 first time, $12.75 renewal, plus $15 privilege tax. Title fee is $9. EV surcharge is $150/year (PHEV $75). A new $35,000 vehicle in a typical Mississippi county runs about $2,113 in first-year costs (just $1,750 sales tax + $312 first-year ad valorem + small fees), with annual renewals around $340 dropping as the vehicle depreciates.

How Mississippi calculates registration

• Annual Registration Fee — $13 (annual) Per MS Code Title 27. $14.00 at first registration, $12.75 at renewal. Shown here is the renewal amount (most relevant for annual costs).
• First-Time Registration Premium — $1 (one-time) Mississippi charges $14.00 at first registration ($12.75 + $1.25 first-time premium). Renewals are just $12.75.
• Privilege License Tax — $15 (annual) Per MS Code §27-19-1 et seq. Flat $15/year privilege license tax on passenger vehicles. Light trucks pay approximately $7.20.
• Annual Vehicle Ad Valorem Tax (net of legislative credit) — 1.05% of depreciated value (annual) Per MS Code §27-51-1 et seq. Mississippi assesses vehicles at 30% of MSRP × depreciation × county millage rate (typically 80-130 mills statewide). The state provides a "legislative tag credit" reducing the gross tax by 6.5% of assessed value — this typically cuts the bill by roughly half. Net effective rate on full MSRP is approximately 1.05% statewide (3.0% gross × dep − 1.95% credit × dep). County millage variance: DeSoto ~80 mills (~0.5% effective), Hinds (Jackson) ~140 mills (~2.2% effective), most counties 90-120 mills.
• Title Fee — $9 (one-time) One-time title fee per Mississippi DOR fee schedule.

Sales tax

Mississippi charges 5% state sales tax . Trade-in credit: full. Tax basis: purchase price.

Mississippi charges 5% state sales tax on vehicles weighing 10,000 lbs or less — LOWER than the 7% state retail sales tax (special vehicle rate per MS Code §27-65-23). Heavy trucks over 10,000 lbs pay 3%. Crucially, MS has NO LOCAL sales tax additions on vehicles — the 5% state rate is the entire tax, no matter which county. Trade-in is fully credited.

Electric vehicle surcharge

Mississippi charges an additional $150/year for electric vehicles.

Per MS Code §27-19-21. Battery EVs pay $150/year additional registration. Plug-in hybrids pay $75/year. These fees fund road maintenance to compensate for reduced gas tax contributions.

What makes Mississippi distinctive

• Mississippi's 5% vehicle sales tax is one of the lowest in the South, well below neighbors AL (combined ~9%), AR (~9%), LA (~10%), TN (~9%). Combined with NO local additions on vehicles — every Mississippi county pays the same 5% — MS is meaningfully cheaper than its neighbors for vehicle purchases.
• Mississippi provides a "legislative tag credit" of 6.5% of assessed value that reduces the gross ad valorem tax bill — typically cutting the bill by 30-50% depending on the county's millage. The credit is automatically applied at registration; you don't need to claim it. Without the credit, MS would have one of the highest vehicle ad valorem rates in the South.
• Mississippi county millage rates vary substantially: DeSoto County ~80 mills (north Mississippi suburbs, low effective rates), Hinds County (Jackson) ~140 mills (highest in state), most counties 90-120 mills. After the legislative credit, net effective rates on full MSRP range from about 0.5% (DeSoto) to 2.2% (Hinds) — meaningful for the same vehicle.
• Mississippi uses ORIGINAL MSRP as the basis for ad valorem (not what you paid). A used $15,000 vehicle with $35,000 original MSRP pays ad valorem based on the $35,000 figure, depreciated for age. The MSRP is captured at first MS registration.
• Mississippi's $150/year EV surcharge plus $75 PHEV surcharge are in the middle-tier nationally. Combined with no state EV purchase incentive, MS is neutral on EV ownership. The state has comparatively limited public charging infrastructure relative to neighbors.