Credit card processing and merchant services in Jackson, MS
Jackson adds a 1% special infrastructure tax to most sales, for 8% in total. Restaurants and hotels are exempt from it but pay a 1% convention and visitors bureau tax.
Jackson's sales tax has a city layer that most of Mississippi doesn't. Since March 1, 2014, the City of Jackson has levied a 1% special infrastructure tax on sales taxed at 7% or more under state law. For a typical retail sale that makes the total 8%: the state's 7% plus the city's 1%. The Department of Revenue lists a repeal date of July 1, 2035, so plan on it for years yet.
Restaurants and hotels are treated differently. Restaurant food and beverage sales and hotel room income are exempt from the infrastructure tax. The bigger ones owe a separate 1% Convention and Visitors Bureau tax: restaurants with $100,000 or more in prior-year sales, and hotels and motels with more than ten rental units, drinks served on the premises included. The Department also has pages for a Capital City Convention Center tax and an occupancy tax in Jackson. If you run a kitchen or rent rooms, read all three before you set up a POS.
The Census Bureau estimated Jackson's population at 141,196 in July 2025.
Surcharges in Mississippi follow card network rules, since there's no state statute we know of. On a $60 retail sale in Jackson, tax at 8% is $4.80. A 3% credit card surcharge adds $1.80 more, and the customer sees both lines. Whether that's worth it depends on what cards cost you now. Interchange-plus pricing shows that card by card, and restaurant owners can read our restaurant payment processing guide. A free statement review puts your current effective rate on one page.
Rules that matter in Jackson
Special infrastructure tax
The City of Jackson's 1% special sales tax applies to the gross proceeds of sales, or gross income, from activities taxed at 7% or more under Mississippi's sales tax law. It took effect March 1, 2014, and the Department of Revenue lists a repeal date of July 1, 2035.
Exemptions include restaurant sales of food and beverages, hotel and motel income from room rentals, and the income of cable, subscription, telecommunications and internet services.
Sources: Mississippi Department of Revenue, Jackson special infrastructure tax; Mississippi Department of Revenue, Notice: City of Jackson one percent special sales tax (PDF)
Restaurant and hotel taxes
A 1% Convention and Visitors Bureau tax applies to the gross proceeds of restaurants, hotels and motels in Jackson, including beer and alcoholic beverages sold for consumption on the premises. A restaurant is covered if its gross proceeds for the preceding calendar year were $100,000 or more. Lodging with ten or fewer rental units doesn't count as a hotel or motel for this tax.
The Department of Revenue also publishes pages for a Capital City Convention Center tax and an occupancy tax in Jackson. Read them before you set up a restaurant or hotel POS.
Sources: Mississippi Department of Revenue, Jackson (city) convention and visitors bureau tax; Mississippi Department of Revenue, Jackson (city) Capital City Convention Center tax; Mississippi Department of Revenue, Jackson occupancy tax
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Common questions
What sales tax rate applies to retail sales in Jackson?
8% on most retail sales: Mississippi's 7% regular rate plus the City of Jackson's 1% special infrastructure tax, in effect since March 1, 2014. The city tax applies to sales taxed at 7% or more under state law, so items with a lower state rate don't carry it.
Do Jackson restaurants pay the special infrastructure tax?
No. The Department of Revenue lists restaurant sales of food and beverages among the exemptions, along with hotel room income. Restaurants with $100,000 or more in sales in the prior calendar year owe Jackson's 1% Convention and Visitors Bureau tax, and the Department lists other Jackson hospitality taxes worth checking.
When does Jackson's special infrastructure tax end?
The Department of Revenue lists a repeal date of July 1, 2035. Until then, keep it in your POS for sales taxed at the 7% rate, and check the Department's Jackson page once a year in case the date or the rules change.
Should a Jackson hotel add a card fee to room bills?
Think it through first. The FTC's Rule on Unfair or Deceptive Fees, in effect since May 12, 2025, requires short-term lodging businesses to show the total price, mandatory fees included, up front. A credit card surcharge must also stay within Visa's 3% and Mastercard's 4% caps and can't touch debit cards. Get advice on how a card fee fits your advertised rates.
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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