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Is data processing taxable in Mississippi?

Not taxable

No. Mississippi excludes IaaS, PaaS and information and data processing services from its taxable computer software categories.

Short answerNot taxable
Authority2023 SB 2449; Miss. Code 27-65-23, 27-65-26, 27-65-29
Last reviewed2026-09-30

Why

Under 2023 SB 2449, IaaS, PaaS and information and data processing services are excluded from computer software and computer software service (Miss. Code 27-65-29).

Business vs. consumer buyers

Because Mississippi does not tax this category, buyer type does not change the answer.

Where the line is

How AgentTax classifies data processing

Processing data the customer furnishes and returning the processed result: compute, transformation, analysis and API calls that operate on the buyer's own data. AgentTax routes compute work, API access and data processing to its data processing category.

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Frequently asked questions

Is cloud compute taxable in Mississippi?
No. IaaS, PaaS and data processing services are excluded from Mississippi's computer software tax categories.

Related

Sources

This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.