Mississippi Used Car Sales Tax: 5% of True Value, Family and 10-Year Exemptions

Mississippi charges 5% sales tax on a used car, but in a private sale it's 5% of the car's "true value" from the state's official assessment schedule, not 5% of what you paid. You pay it to your county Tax Collector when you register the car. Two exemptions catch a lot of people off guard, in a good way: transfers between close family are exempt, and so is any car sold ten or more years after it was built. Dealer sales are taxed at 5% of the net price after the trade-in.

I read the statute, Miss. Code Ann. 27-65-201, plus the Mississippi Department of Revenue's motor vehicle FAQ and sales tax rate table, and Lamar County's tax collector FAQ, all on Oct 19, 2026. Everything below is as of that date. For the title paperwork itself, see our Mississippi private-sale title transfer guide.

Private sale: the tax is on the book value

Section 27-65-201(2) applies when you buy a vehicle that has to be registered with a county tax collector from someone who isn't a licensed dealer. The tax is 5% "of the true value of the motor vehicle as calculated by using the most current official motor vehicle assessment schedule supplied by the Department of Revenue." So a $3,000 handshake price on a car the schedule values at $6,000 is taxed on $6,000, and a bill of sale with a low number written on it doesn't change the math. It works the other way too: if you overpaid, the tax still follows the schedule.

The same 5% use tax applies if you buy from a private seller out of state and bring the car home. The Tax Collector collects the tax at registration, and you can't register without paying it.

Trade-ins in a private deal

Yes, Mississippi counts them. Under 27-65-201(4), when a motor vehicle is taken in trade as part payment, the tax is paid on the net difference: the true value of the car sold minus the credit for the vehicle traded in. Write both vehicles and the trade value into the bill of sale so the clerk can see it.

Family transfers and older cars

Subsection (7) lists the exemptions. The ones most used-car buyers care about:

• Transfers between husband and wife, parent and child, or grandparent and grandchild, if the car is currently registered in the transferor's name and the transferor isn't a dealer selling in the normal course of business.
• Transfers between siblings, with the same dealer exception.
• Transfers under a will or under the state's intestacy law.
• Transfers of a vehicle "ten (10) or more years after the date of the manufacture."

That last one is big for anyone shopping old cars. A private-sale car built ten or more years ago isn't subject to this tax at all. The statute says date of manufacture, not model year, so check the build month on the door-jamb label of a borderline car. Aunts, uncles and cousins aren't on the family list, so a sale to a nephew is taxed like any other private sale unless the car is old enough.

Buying from a dealer

The Department of Revenue's FAQ says the dealer rate is 5% on the net purchase price after dealer discounts and trade-ins, and manufacturer rebates don't reduce it. Its rate table lists automobiles and light trucks of 10,000 pounds or less at 5%, and heavier trucks at 3%. One trap: if you paid sales tax to another state and first tag the car in Mississippi, the DOR says that tax won't be credited. Lamar County's FAQ says the same thing.

Deadlines and what else you'll pay

The DOR FAQ says you must register a newly purchased vehicle within 30 business days of the purchase date. If you bought it outside your home county, you get 48 hours to get it home and then the 30 business days. Some older county pages still show a shorter window, so if your Tax Collector tells you something different, go with what they say and get it done early.

Sales tax isn't the only bill. The DOR lists privilege tax, registration fees ($14.00 for a first registration, $12.75 for renewals), ad valorem tax based on the vehicle's value and where you live, and sales or use tax if it applies. A title is $9.00. For late renewals, the FAQ's penalty starts at 5% and grows by 5% per 30 days to a 25% cap, after which you lose the Legislative Tag Credit. Our overview of used car sales tax by state shows how this compares.

Check the car before you pay tax on it

A cheap car from a storm-hit area can be a flood car, and a salvage brand can disappear when a car is retitled in another state. Our Mississippi salvage and rebuilt title rules explain what the brands mean. Check the title history on NMVTIS, then a CARFAX or AutoCheck report for accidents and odometer readings. We're a licensed reseller of both and not affiliated with CARFAX, AutoCheck or Experian. In mid October 2026 a report was about $5.50 as a guest or $4.50 as a member, and about $6.75 for the pair, versus roughly $39.99 to $44.99 retail. Confirm the number on the checkout page before you pay.

Sources

• Miss. Code Ann. 27-65-201, tax upon sale or use of motor vehicles (2025 code, read Oct. 19, 2026)
• Mississippi DOR: Motor vehicle frequently asked questions
• Mississippi DOR: Sales tax rates
• Lamar County: How much sales tax do I pay when I buy a vehicle?
• NMVTIS: National Motor Vehicle Title Information System