Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Mississippi tax professional before filing.
Mississippi · USA · Short-term rental taxes
Short-Term Rental Taxes in Mississippi
Short term rental taxes in Mississippi: 7% state sales tax on every stay, local tourism taxes of 1–5% (5% across Harrison County) and a 4% state income tax on 2026 profit above $10,000.
The 30-Second Answer
- Short term rental taxes in Mississippi run through the sales tax: the state charges 7% on the rent, and Airbnb applies it to the listing price including cleaning and guest fees.
- Cities and counties add tourism and economic development taxes on hotel and motel rooms, commonly 1–3%. Across Harrison County — Biloxi, Gulfport, D'Iberville, Long Beach — two levies of 2% and 3% bring the total to 12%; Starkville reaches 10% from August 1, 2026.
- Airbnb and Vrbo collect and remit Mississippi sales tax and local tourism taxes, and state law counts platforms that list rooms and take payment as hotels. Direct bookings need a DOR sales tax account (via TAP) and a return by the 20th.
- Net rental profit is taxed at 4.0% for 2026 on taxable income above the exempt first $10,000 (4.4% for 2025). File Form 80-105 (residents) or 80-205 (nonresidents and part-year residents) by April 15, 2027.
Deductions
What Mississippi STR Hosts Can Deduct
Rental expenses cut the profit taxed on your federal return and the same profit taxed by Mississippi at 4.0% above $10,000.
Sales and tourism taxes you collect from guests belong to the state and locality and are not rental income. If you use the property yourself, allocate costs between rental and personal days under IRC §280A.
Filing Calendar
Key Dates & Filing Calendar
Direct-booking hosts file sales and tourism tax with the Department of Revenue; income tax deadlines match the federal calendar.
Pay your sales tax return by the 20th and Mississippi lets you keep a 2% discount, capped at $50. Late payments accrue interest of 0.5% a month plus a 10% penalty.
Mississippi Department of Revenue — Business Tax FAQs; Individual Income Tax FAQs
Income Tax Treatment
Schedule E or Schedule C for a Mississippi STR?
Mississippi has no special rental regime — your federal classification sets the profit, and the state taxes it at 4.0% above the first $10,000 for 2026.
Passive rental — Schedule E
The standard route for Gulf Coast and lake rentals
- Report rent and expenses on Schedule E; the result flows into Form 80-105 or 80-205.
- No self-employment tax on net rental income.
- Depreciate the building over 27.5 years and furnishings over 5 years.
- Losses are usually passive; the $25,000 allowance phases out between $100,000 and $150,000 of AGI.
No income ceiling; passive loss limits apply
Active business — Schedule C
For hotel-style service
- Applies when the average stay is 7 days or less and you provide substantial services.
- Profit carries self-employment tax of 15.3% up to the 2026 wage base of $184,500.
- The federal QBI deduction (Section 199A) may apply.
- Mississippi's 4.0% rate is the same either way; the choice mainly moves your federal bill.
No income ceiling; SE tax on profit up to $184,500 (2026)
Depreciation
Depreciation for Mississippi STR Properties
Depreciation recovers the cost of the building and furnishings over time and is often the deduction that turns a coastal rental's profit into a small taxable figure.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential rental building | 27.5 years (straight-line) | Leave out the land value; coastal lots can be a large share of the price. |
| Furniture, appliances & electronics | 5 years (MACRS) | Eligible for 100% federal bonus depreciation if acquired after January 19, 2025. |
| Seawalls, fencing, driveways & landscaping | 15 years (MACRS) | Land improvements outside the building. |
| Storm repairs vs. rebuilds | Repair: expensed; rebuild: 27.5 years | Fixing damage is a current deduction; replacing a roof or rebuilding is a capital improvement. |
A cost segregation study can reclassify parts of the property into 5- and 15-year classes for faster federal deductions; ask your preparer how Mississippi treats any accelerated federal depreciation.
On sale, federal tax recaptures depreciation claimed at up to 25% (unrecaptured Section 1250 gain); Mississippi taxes the gain with your other income at its flat rate.
Sales & Lodging Tax
Mississippi Sales & Tourism Taxes on Short Stays
A Mississippi vacation rental stay carries 7% state sales tax plus whatever tourism or hotel-motel tax the local government has adopted.
The Department of Revenue collects the 7% sales tax and administers many local tourism and economic development taxes on the same return. The bars show the state rate and the two heaviest local stacks.
7% statewide; up to 12% in Harrison County (Biloxi and Gulfport)
Mississippi DOR — Tourism and Economic Development Taxes; DOR notice 72-26-11 (Starkville); Airbnb Help Center article 2313; Vrbo Help (US F–M)
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects 7% state sales tax and local tourism and economic development taxes and remits them | Taxes stay out of your income; keep Airbnb's tax reports |
| Vrbo or Booking.com booking | Vrbo collects state and local sales tax and local tourism taxes statewide (since September 1, 2020); check other channels | If a channel does not collect, the tax is yours to report |
| Direct booking | You register with the DOR through TAP, charge the guest and file by the 20th | List sales and tourism tax separately on your invoice and hold the funds until you file |
A few localities charge flat amounts instead — the city of Jackson has a $0.75 per room per day occupancy tax. Some local levies only apply above a minimum number of rooms, so confirm how yours treats a single rental home.
Platforms
Airbnb Tax in Mississippi: What Platforms Collect
Airbnb and Vrbo both collect Mississippi sales and tourism taxes on their bookings; IRS income reporting runs on its own thresholds.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Form 1099-K when 2026 payouts exceed $20,000 and 200 transactions | Yes — 7% state sales tax plus local tourism and economic development taxes | Earnings and tax reports in the host dashboard; tax forms by January 31 |
| Vrbo | Form 1099-K above the same federal thresholds | Yes — state and local sales tax and local tourism taxes statewide | Annual payout summary in the owner dashboard |
| Booking.com / other OTAs | Form 1099-K above the federal thresholds | Check the listing — state law treats facilitators that take payment as hotels, but confirm the tax lines | Partner-portal statements |
| Direct bookings | No platform reporting | No — you file sales and tourism tax with the DOR | Your own booking ledger |
Listing on Several Platforms?
Each platform remits only for the reservations it processes. A family that returns every summer and books your Ocean Springs cottage direct owes sales and tourism tax through your own DOR account. The 1099-K test is per platform, so total all channels yourself for your return.
US Reporting: Form 1099-K, Not DAC7
DAC7 is an EU directive and does not apply to Mississippi hosts. US platforms issue Form 1099-K when payouts pass $20,000 and 200 transactions in a year, and Form 1099-MISC/NEC uses a $2,000 threshold for payments after December 31, 2025. Report all rental income even if no form is issued.
Airbnb Help Center — Mississippi (airbnb.com/help/article/2313); Vrbo Help — where Vrbo collects and remits taxes (US F–M)
Illustrative P&L — Biloxi Beach House
Example for a Biloxi rental grossing $42,000 a year; sales and tourism taxes collected from guests are excluded. For illustration only — not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
Good records support your Schedule E, your Mississippi return and any sales tax returns on direct bookings.
| Keep | How long | Why |
|---|---|---|
| Booking calendar with dates, rates and channel | At least 3 years after filing | Separates rental from personal use and ties to sales tax returns |
| Platform tax reports and 1099-K forms | At least 3 years after filing | Shows which taxes platforms remitted and matches IRS records |
| DOR sales tax returns and payment confirmations | At least 3 years after filing | Proves timely filing and supports the 2% discount |
| Receipts for repairs, insurance and cleaning | At least 3 years after filing (6 if income is understated by more than 25%) | Substantiates deductions on Schedule E or C |
| Purchase documents, storm-repair invoices and depreciation schedule | Until 3 years after you sell | Needed for basis, casualty claims and recapture |
Every registered sales tax account must file for every period, even when all stays that month came through Airbnb or Vrbo or there were no sales at all.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Educational summary only. Local tourism tax rates and effective dates change — check the Mississippi Department of Revenue's tourism tax listing for your city or county before filing.
- Mississippi DOR — Tourism and Economic Development Taxes — Local hotel/motel room taxes, including Harrison County 2% and 3%, Hancock and Jackson counties 2%, Lauderdale County 2.5%. https://www.dor.ms.gov/business/sales-and-use-tax/tourism-and-economic-development-taxes
- Mississippi DOR — Notice 72-26-11, Starkville Hotel and Motel Tax — 2% hotel tax plus 1% parks tax from August 1, 2026 on top of 7% sales tax. https://www.dor.ms.gov/sites/default/files/notices-technical-bulletins/72-26-11%20Starkville%20Hotel%20and%20Motel.pdf
- Mississippi DOR — Business Tax FAQs — Filing frequency, 20th-day due date, 2% discount capped at $50, interest and penalties, TAP registration. https://www.dor.ms.gov/business/business-tax-frequently-asked-questions
- Mississippi DOR — Individual Income Tax FAQs — First $10,000 exempt, Forms 80-105 and 80-205, April 15 deadline and October 15 extension. https://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions
- Mississippi DOR — Pub 89-700 withholding tables (rev. January 2026) — 4.0% rate on taxable income above $10,000 for 2026. https://www.dor.ms.gov/sites/default/files/tax-forms/business/89700251revised1.13.2026.pdf
- Mississippi Code § 27-65-23.1 — Definition of hotel or motel for local taxes, including one-room providers and payment facilitators. https://law.justia.com/codes/mississippi/title-27/chapter-65/in-general/section-27-65-23-1/
- Airbnb Help Center — Occupancy tax collection in Mississippi — 7% state sales tax on listing price plus local tourism taxes. https://www.airbnb.com/help/article/2313
- Vrbo Help — Where Vrbo collects and remits taxes (US F–M) — Mississippi state and local sales tax and local tourism taxes since September 1, 2020. https://help.vrbo.com/articles/vrbo-stay-taxes-lodging-taxes-united-states-f-m
- IRS — Publication 527, Residential Rental Property — Schedule E reporting, depreciation and personal-use rules. https://www.irs.gov/publications/p527
Questions
Frequently Asked Questions — Mississippi STR Taxes
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