Mississippi is a Southern state lying east of the lower reaches of the river that shares its name. Covering 125,000 km², the "Magnolia State" has a narrow strip of coastline on the Gulf of Mexico to the south. It borders Tennessee to the north and Alabama to the east, while across the Mississippi River to the west lie Arkansas and Louisiana. Mississippi has almost three million residents, and the capital, Jackson, is its largest city with just over 170,000 people.
Mississippi has a proven track record of attracting world-class companies and offering a business-friendly environment where industry keeps thriving. Its excellent business climate and commercial advantages make it a perfect location for today's growth industries. In 2018, the trade magazine Area Development ranked Mississippi number 10 in its "Best State for Doing Business" category, and Mississippi also ranks among the 10 most popular US states for foreign direct investment.
The state offers a large pool of well-trained, productive workers, outstanding training programs and research universities known for working closely with industry. This is where manufacturing ideas go from concept to reality.
Built in Mississippi
More than two thirds of the entire US Navy warship fleet was built by Huntington Ingalls. The company is headquartered in Mississippi, as is Howard Industries, the largest transformer manufacturer in the United States. Hybrid Plastics Inc. also calls the state home and has grown into one of the top ten nanotechnology companies in the US.
Mississippi has played a central role in the aerospace industry since the early days of NASA's Apollo program. Over the years it has drawn some of the industry's best-known names to the "Magnolia State", Airbus among them.
Every company here can count on a skilled, productive workforce, comprehensive workforce training, a supportive business environment, a strategic location, low startup and operating costs and cutting-edge research and development. The motto says it all: Powered by intelligence. Built in Mississippi.
Why FDI matters
432 international companies operate and grow in Mississippi. Their investments have created around 40,000 jobs, almost 40 percent of them in manufacturing. Companies from Japan, France and the UK have driven the strongest job growth. By investment volume in Mississippi projects, German companies rank second, behind Japan and ahead of Israel.
From 2013 to 2018, employment created by FDI grew by 16 percent, while total private-sector employment in the state rose by just five percent.
For Tadaharu Yamamoto, president of Yokohama Tire Manufacturing Mississippi LLC, there is no question that choosing Mississippi and bringing the project here was the right decision.
Nissan invests in education
A good education for young local talent matters to every company. Nissan doesn't rely on the state alone: for six years it has donated to Mississippi's seven Historically Black Colleges and Universities (HBCUs), supporting science, technology, engineering and mathematics (STEM).
Keri Kelly, Director (Diversity & Inclusion) at Nissan America, says students with a STEM degree have a wide range of career options and can change the world for the better.
Tim Fallon, Vice President (Manufacturing) at Nissan's Canton Vehicle Assembly Plant, confirms that Nissan benefits from the donations too: HBCU graduates working at Nissan are well prepared for the challenges of developing and building its vehicles, and so help the company grow.
Income tax in Mississippi
Mississippi taxes income above a $10,000 exemption at a flat rate of 4% (tax year 2026; 2025: 4.4%, with further cuts from 2027). On top of that, federal income tax applies.
Corporate tax in Mississippi
Mississippi levies corporate income tax of up to 5% (0% on the first $5,000, 4% on the next $5,000, 5% on profits above $10,000). On top of that, federal corporate tax applies.
Sales tax in Mississippi
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in Mississippi
Mississippi's state sales tax is 7%. Cities and counties add an average of 0.07%, for a combined average rate of 7.07%.
Mississippi nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
September 1, 2018
Included transactions:
Total sales in the state by remote sellers that purposefully or systematically exploit the state's market. Services count toward the threshold.
Treatment of exempt sales:
Exempt sales and exempt services count toward the threshold
Trigger:
Sales only
Sales/transaction threshold:
$250,000
Evaluation period:
The threshold applies to all transactions in the past 12 months
Additional information:
- Registration requirements: Mississippi has not specified how quickly a remote business must register once it crosses the economic nexus threshold. It could be as early as the next transaction.
- Guide for remote sellers
Mississippi marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
Economic nexus threshold:
More than $250,000 in sales in the state over any consecutive 12-month period. When calculating the threshold:
Remote sellers should include direct sales but not sales made through a collecting marketplace
Marketplace facilitators should include all sales made through the marketplace
Registration requirements:
- Remote multichannel sellers: Once you cross the economic nexus threshold, you must register with the Mississippi Department of Revenue (DOR) and collect Mississippi sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You don't need to register or collect Mississippi sales tax, even if you cross the economic nexus threshold.
- In-state multichannel sellers: You must register with the Mississippi DOR and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You must register. Contact the Mississippi DOR for more information.
Learn more here.
You'll find every state profile in our overview of US states, and the place to start is our guide to forming a company in the USA. Whether a US LLC without a US permanent establishment can stay tax-free for you is explained by our sister site www.zerotax.llc.
Our services for Mississippi:
If Mississippi is to become your market, it all starts with the right structure. Under US company formation you'll find entity types and states of incorporation with prices; in a consultation we work out which fits you.