Mississippi Auto Loan Calculator (with Mississippi Sales Tax & Fees)

Mississippi's general state sales tax rate is 7%, but the legislature carved out a specific, lower 5% rate for motor vehicle sales, making cars one of the few major purchase categories in the state that is taxed below the standard rate. That 5% applies to the vehicle's purchase price and is collected by the county tax collector at the time of titling and registration rather than by the dealer directly, though dealers typically handle the paperwork and quote the tax as part of the transaction.

Mississippi's annual vehicle registration structure adds an ad valorem property tax component on top of the state's flat registration fee, meaning vehicle owners pay a local personal property tax on their car each year in addition to the one-time 5% sales tax paid at purchase. That ad valorem tax is assessed by the county based on the vehicle's value and depreciates over time, similar in spirit to how Mississippi treats other personal property, and it is a recurring annual cost separate from anything modeled by this calculator.

This calculator applies the 5% state vehicle sales tax to the full purchase price, adds a flat $350 estimate to cover title work, registration, and dealer documentation, and finances the remaining balance over the buyer's chosen term. Mississippi allows a trade-in credit against the taxable purchase price on a dealer transaction, which this calculator does not model, so the tax figure shown should be read as an upper bound for anyone trading in a vehicle.

1. State vehicle sales tax. salesTax = vehiclePrice × 0.05.
2. Total vehicle cost. The price, the tax, and a flat $350 title/registration/documentation estimate are summed.
3. Amount financed. The down payment (including any trade-in value entered) is subtracted from the total vehicle cost.
4. Amortization. The financed balance is amortized monthly at the entered APR over the chosen term:

$$M = P \times \frac{r(1+r)^n}{(1+r)^n - 1}$$

where $P$ is the financed amount, $r$ is the monthly interest rate, and $n$ is the term in months.

Using the calculator's default inputs:

• Vehicle price: $35,000.00
• Down payment / trade-in: $5,000.00
• Loan term: 60 months
• APR: 7.25%

Step 1: State vehicle sales tax. $35,000.00 × 5% = $1,750.00.

Step 2: Total vehicle cost. $35,000.00 + $1,750.00 (tax) + $350.00 (title, registration, and doc fees) = $37,100.00.

Step 3: Amount financed. $37,100.00 minus $5,000.00 down = $32,100.00.

Step 4: Amortization at 7.25% APR over 60 months. The monthly rate is 7.25% ÷ 12 = 0.6041667%. Financing $32,100.00 at that rate over 60 months produces a monthly payment of approximately $639.41, with total interest of roughly $6,265 over the loan's life.

• The trade-in tax credit. Mississippi allows a dealer to reduce the taxable purchase price by the value of a qualifying trade-in, lowering the 5% sales tax owed. This calculator taxes the full purchase price regardless of trade-in and treats trade-in value only as a reduction to the amount financed.
• Annual ad valorem property tax on the vehicle. Mississippi counties assess a yearly personal property tax on vehicles based on value, collected alongside registration renewal, in addition to the one-time 5% sales tax paid at purchase. This recurring cost is not part of this calculator's output.
• Lender fees and add-on products. GAP insurance, extended warranties, and bank origination fees are excluded from the flat fee estimate.
• Credit-based rate variation. The APR a buyer actually qualifies for depends on credit history and the lender, which the calculator does not adjust for.
• County-level registration fee differences. Mississippi's registration and ad valorem tax amounts are administered at the county level and vary by county millage rate, which this calculator's flat $350 estimate does not capture.

• Assuming the general 7% Mississippi sales tax rate applies to a vehicle purchase. Vehicles get a preferential 5% rate; using the general rate would overstate the tax bill by a meaningful margin.
• Forgetting the annual ad valorem tax exists. Buyers who only budget for the 5% sales tax paid once at purchase are often surprised by the recurring yearly ad valorem property tax bill on the vehicle at registration renewal.
• Not asking the dealer about trade-in tax credit eligibility. Buyers with a trade-in should confirm the taxable price after the trade-in credit is applied, since the actual sales tax owed is often lower than a flat calculation on the full price suggests.
• Overlooking county-to-county ad valorem rate differences. Because the ad valorem tax is set at the county level, the same vehicle can carry a different annual tax bill depending on where in Mississippi it is registered.
• Stretching the loan term to lower the payment without checking total interest. Extending from 60 to 72 or 84 months lowers the monthly figure shown in the calculator's scenario toggles but increases total interest paid over the loan's life.

• Mississippi Department of Revenue: Motor Vehicle Sales Tax guidance and Sales Tax Law, Miss. Code Ann. Section 27-65-201.
• Mississippi Department of Revenue: Ad Valorem Tax on motor vehicles, Miss. Code Ann. Title 27, Chapter 51.
• Consumer Financial Protection Bureau (CFPB): Regulation Z (Truth in Lending Act) disclosure requirements for auto financing.
• Tax Foundation: State Sales Tax Rates, 2025/2026 edition.