Does Mississippi tax SaaS?

Not when the software is hosted outside Mississippi and accessed only over the internet. In-state hosting or delivered code is taxable.

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Is SaaS taxable in Mississippi?

Not taxable

No, when the software runs on a server outside Mississippi. Under 2023 SB 2449, computer software maintained on an out-of-state server and accessible only via the internet is not a taxable retail sale.

Short answer	Not taxable (out-of-state server)
Effective date	Rule enacted by 2023 SB 2449, effective 2023-07-01.
Authority	Miss. Code 27-65-7; 27-67-3; 2023 SB 2449
Last reviewed	2026-09-30

Why

Mississippi amended Miss. Code 27-65-7 and 27-67-3 in 2023 SB 2449 to provide that computer software maintained on a server located outside the state and accessible for use only via the internet is not a taxable retail sale.

The answer turns on server location, which a buyer usually cannot see. AgentTax applies the exemption and discloses the condition.

Business vs. consumer buyers

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

Where the line is

Software hosted on a server inside Mississippi, or code delivered to the buyer, is taxable.

How AgentTax classifies SaaS

Remotely accessed software sold by subscription or per use: the customer runs the seller's hosted application and never receives a copy. AgentTax routes SaaS and general AI-agent output (content and consulting work) to its digital service category.

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Frequently asked questions

Does Mississippi tax SaaS?: Not when the software is hosted outside Mississippi and accessed only over the internet. In-state hosting or delivered code is taxable.

Sources

Miss. Code 27-65-7
27-67-3
2023 SB 2449

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.