Out-the-door price in Mississippi
How Mississippi works
- Mississippi charges 5% sales tax on a car, van, SUV or pickup up to 10,000 pounds, the same in every city and county. A truck over 10,000 pounds pays 3%. No city or county adds to the 5% on a vehicle. The dealer collects it at the sale.
- Your trade-in comes off the price before tax, on new and used cars, with no dollar limit. A dealer discount comes off too. A manufacturer rebate does not: Mississippi taxes the price before the rebate.
- The dealer's document fee and any accessories attached to the car are taxed. A separately listed service contract or extended warranty is not taxed.
- The dealer files your title application. You then take the copy to your county tax collector within 30 business days to pay for the tag. The tag fee, privilege tax and county property tax are paid there, not to the dealer.
- The county property tax is the large Mississippi ownership cost: often several hundred dollars on a new car and more in some cities. The figure here is an estimate from the statewide median rate; your tag office has your exact amount.
- A franchised dealer may charge a document fee of up to $425 under the Motor Vehicle Commission's rule. The fee has to be the same for every buyer and listed separately. The rule does not name independent used-car dealers.
- A dealer can issue a drive-out tag good for seven working days (its cost to the dealer is $5) to a buyer who is leaving the state before tagging. Most in-state buyers go straight to their county tax collector, so it is not in the total.
Rules last verified Oct 11, 2026. Our methodology.
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What a Mississippi advertised price has to include
Mississippi's Motor Vehicle Commission requires a franchised dealer's advertised price to include freight, dealer preparation, dealer handling and any added dealer profit, but lets the dealer leave out taxes, tags, registration, title fees and the document fee. The FTC expects more: every fee the dealer charges, the document fee included, belongs in the advertised price, so only government charges like sales tax, title and registration can be added on top. That still isn't your out-the-door number; the calculator above adds the rest for your ZIP.
Federal law comes first
The FTC requires a dealer's advertised price to include every fee the dealer charges. Only charges the government requires you to pay, like tax, title and registration, can be left out. Where a state's rules let a dealer leave a fee out, the dealer still has to follow the federal rule, so the fee goes in. The FTC says a state's doc-fee rules can add disclosures, but they don't change the price that has to be advertised. Read the FTC's guidance.
Mississippi's advertising rule and the FTC conflict on the document fee
Mississippi's Motor Vehicle Commission rule says a dealer's advertised price need not include the document/service fee, which can be up to $425. The FTC expects every fee a dealer charges, the document fee included, to be in the advertised price. A dealer can satisfy both by including it. Until regulators or the courts settle it, you may see Mississippi ads that leave it out. Ask whether a price includes it, and get the out-the-door price in writing.
What the FTC expects in the advertised price
- Freight (destination) charges
- Dealer preparation and dealer handling
- Additional dealer profit or margin, and anything already installed such as undercoating or rust proofing
- The document fee (up to $425), under the FTC's position; Mississippi's rule lets the dealer leave it out
- The drive-out tag, if the dealer charges for it
Can still be added on top
- Sales tax: 5% statewide
- Title fee ($9), tag and registration fee ($14) and the highway privilege tax ($15)
- The county vehicle property tax paid when you tag the car
- Optional products you choose to buy, such as a service contract or GAP coverage
- The document fee: the Commission caps it at $425. It has to be reasonable, charged to every buyer whether cash or credit, listed as its own line on the buyer's order, and printed with a notice that begins "A DOCUMENT/SERVICE FEE IS NOT AN OFFICIAL FEE AND IS NOT REQUIRED BY LAW." It may not include the cost of preparing a finance contract or a lease.
- Who the rules cover: the advertising and document fee rules are the Commission's, and the Commission licenses franchised new-car dealers. The text of the rules does not name independent used-car dealers.
- Price honoring: an advertised vehicle has to be on hand, or available from the manufacturer within a reasonable time, and shown and sold at the advertised price. An ad for one specific car has to give its stock number or VIN.
- Rebates and discounts: an ad has to say who pays a rebate and that it "may affect final negotiated price." The most prominent price has to be one every customer can get. It can count a factory rebate open to all buyers but not a military, college graduate, loyalty or trade-in bonus.
- Down payments: an ad for a very low price that depends on a down payment or trade equity of 20% or more is unlawful.
More in our guide: Do dealers have to put fees in the advertised price? What actually changed for 2026
See every state: Which states let dealers leave the doc fee out of the advertised price?
Mississippi in detail
Mississippi OTD questions, answered
Does a trade-in reduce sales tax in Mississippi?
Yes — Mississippi taxes the difference: your trade-in's value is subtracted before tax is computed.
Are manufacturer rebates taxed in Mississippi?
Effectively yes — tax is computed before the rebate is applied, so you pay tax on the pre-rebate price.
Is the doc fee capped in Mississippi?
Yes — the cap is $425.00 (MMVC Reg. 8.1(B)(8) (30 Miss. Admin. Code Pt. 1301, R. 8.1), under Miss. Code 63-17-69: flat $425, not CPI-indexed. Amended 2017-01-21. Franchised dealers (63-17-55(b)).). A dealer may not exceed it.
What does a Mississippi dealer's advertised price have to include?
Every fee the dealer charges, including the document fee (the FTC's position; Mississippi's rule lets a franchised dealer leave the document fee out, so the two conflict). Only sales tax, title, registration and other government charges can be added on top.
Is there a cap on Mississippi dealer document fees?
Yes, $425 for dealers the Mississippi Motor Vehicle Commission licenses, which are franchised new-car dealers. The fee has to be the same for every buyer and listed separately. The rule's text does not name independent used-car dealers.
Do I pay sales tax at a Mississippi dealership?
Yes. The dealer collects 5% statewide on a car or light truck. Your trade-in and dealer discount reduce it. A manufacturer rebate does not.
Why is my Mississippi tag so expensive?
The tag office charges a county property tax on the car's value, set by your city, school district and county. It is paid when you tag the car and again each year.