Which state has the lower sales tax nexus threshold, Mississippi or Tennessee?

Tennessee has the lower economic nexus threshold at $100,000, versus $250,000 in Mississippi. A seller's Tennessee sales would reach the published Tennessee threshold first. These are the thresholds published by each state's tax authority as of 2026-05-27; confirm against the official source before registering.

Do both Mississippi and Tennessee have marketplace facilitator laws?

Yes. Both Mississippi and Tennessee have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-05-27.

Which has the lower sales tax rate, Mississippi or Tennessee?

Mississippi has the lower combined state and local sales tax rate at 7.07%, compared with 9.61% in Tennessee. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-05-27.

Do I need to register for sales tax in both Mississippi and Tennessee?

It depends on where you cross each state's economic nexus threshold (or have physical presence there). Mississippi's published threshold is $250,000, and Tennessee's is $100,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-05-27.

When did economic nexus take effect in Mississippi and Tennessee?

Mississippi's economic nexus rule took effect on 2018-07-01, and Tennessee's took effect on 2020-10-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

Mississippi vs Tennessee Sales Tax Nexus — Comparison 2026

Updated 2026-05-27

Compare economic nexus thresholds, state and local rates, and filing rules in Mississippi and Tennessee.

Metric	Mississippi	Tennessee
Economic nexus threshold	$250,000	$100,000
Transaction threshold	None	None
State rate	7.00%	7.00%
Avg. local rate	0.07%	2.61%
Combined state + local	7.07%	9.61%
Marketplace facilitator	Yes	Yes
Effective since	2018-07-01	2020-10-01

Which state is easier for sellers?

For low-revenue sellers: nexus triggers first in Tennessee because of its $100,000 threshold. If you cross that first, you register there first.

On rate: Mississippi is friendlier for customers with a combined state + local rate of 7.07% vs 9.61%.

Neither state has a transaction-count trigger — only the dollar threshold matters.

Mississippi — nexus note

Mississippi sales and use tax nexus threshold: out-of-state businesses with Mississippi sales exceeding $250,000 over any twelve-month period are considered to have substantial economic presence effective July 1, 2018 and must register, collect, and remit tax. Mississippi uses a sales-only threshold — no transaction-count test. Remote sellers should measure sales on a rolling twelve-month basis rather than the current-or-prior-calendar-year framing used by many other states.

Tennessee — nexus note

Economic nexus in Tennessee triggers at $100,000 in gross sales delivered into Tennessee in the current or prior calendar year. No transaction count threshold.

What to do next

Use the nexus calculator to check exactly which of Mississippi and Tennessee you've already triggered. Then read each state's full guide:

Mississippi overview →Tennessee overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, Mississippi or Tennessee?: Tennessee has the lower economic nexus threshold at $100,000, versus $250,000 in Mississippi. A seller's Tennessee sales would reach the published Tennessee threshold first. These are the thresholds published by each state's tax authority as of 2026-05-27; confirm against the official source before registering.
Do both Mississippi and Tennessee have marketplace facilitator laws?: Yes. Both Mississippi and Tennessee have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-05-27.
Which has the lower sales tax rate, Mississippi or Tennessee?: Mississippi has the lower combined state and local sales tax rate at 7.07%, compared with 9.61% in Tennessee. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-05-27.
Do I need to register for sales tax in both Mississippi and Tennessee?: It depends on where you cross each state's economic nexus threshold (or have physical presence there). Mississippi's published threshold is $250,000, and Tennessee's is $100,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-05-27.
When did economic nexus take effect in Mississippi and Tennessee?: Mississippi's economic nexus rule took effect on 2018-07-01, and Tennessee's took effect on 2020-10-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

Sources

date_retrieved: Mississippi 2026-05-15 · Tennessee 2026-05-27

Mississippi: https://www.dor.ms.gov/
Mississippi: https://www.dor.ms.gov/sales-and-use-tax
Mississippi: https://www.dor.ms.gov/business/withholding-tax-faqs
Mississippi: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
Mississippi: https://taxfoundation.org/data/all/state/sales-tax-rates/
Tennessee: https://www.tn.gov/revenue.html
Tennessee: https://www.tn.gov/revenue/taxes/sales-and-use-tax/out-of-state-sellers.html
Tennessee: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
Tennessee: https://taxfoundation.org/data/all/state/sales-tax-rates/