Is data processing taxable in Mississippi?
No. Mississippi excludes IaaS, PaaS and information and data processing services from its taxable computer software categories.
| Short answer | Not taxable |
|---|---|
| Authority | 2023 SB 2449; Miss. Code 27-65-23, 27-65-26, 27-65-29 |
| Last reviewed | 2026-09-30 |
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
- Software delivered to the buyer, or hosted on an in-state server, can be taxable.
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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Open the calculatorFrequently 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
- All Mississippi digital tax answers
- Is SaaS taxable in Mississippi?
- Are information services taxable in Mississippi?
- Data processing: every state we cover
- Is data processing taxable in California?
- Is data processing taxable in Connecticut?
- Is data processing taxable in Iowa?
- Is data processing taxable in Kansas?
- Is data processing taxable in Kentucky?
- Is data processing taxable in Louisiana?
Sources
- 2023 SB 2449
- Miss. Code 27-65-23, 27-65-26, 27-65-29
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.