and just bought a car from out of state, you will have to complete a title application at your local tax collector’s office and pay Mississippi sales tax.

Buying and

registering a car in Mississippi

can be complicated—more so when you add in the logistics of transporting it between states or figuring out how it works with an out-of-state lienholder.

In this article, we’ll answer all of your questions and more. We’ll go over the required documentation, plus important reminders.

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How to buy a car out of state as a Mississippi resident

If you live in Mississippi and just bought a car from out of state, you probably have some questions. How do you transfer the out-of-state title? Where do you register your vehicle? Where do you pay taxes?

Buying cars from out of state is fairly common. Fortunately, in Mississippi, the process of registering an out-of-state vehicle is pretty easy. There are a few important things to note before we get into the details.

You have to pay taxes for the vehicle in Mississippi. The sales tax rate in Mississippi is 5%, and taxes paid in other states are not credited to the tax due in Mississippi.

You have to register your vehicle within seven days of purchasing it. If you bought the vehicle out of county or out of state, you have 48 hours to transport the vehicle to your place of residence or place of business, then you must register it within seven days.

To register any vehicle in Mississippi, you will have to visit your local tax collector's office to submit your application and receive your vehicle tags. If you purchased the vehicle from out of state, you need to provide the out-of-state title, bill of sale or purchase invoice, and an odometer disclosure statement.

If you purchased the vehicle new from an out-of-state dealership, there won’t be a title, so you need to provide the Manufacturer’s Statement of Origin.

You will have to get the Application for Mississippi Title and License form from your local tax collector. You can find most other forms on the

Mississippi Department of Revenue (DOR) website

If you are leasing or financing the car from an out-of-state dealership, usually the lender will have to submit the title application, and you may have to provide some supporting documents. Be aware that if you purchase a vehicle from an out-of-state lienholder, you will often have to pay the vehicle in full before they release the certificate of title, perhaps by contacting a Mississippi lending institution.

Also, remember that in Mississippi, your vehicle tags and license plates are registered to the individual and to the vehicle. You will be assigned new plates for your vehicle; don’t forget to return any old tags!

OK, there is quite a lot there. Here is a breakdown of all the forms that you need to transfer a title from out of state:

Completed title application form

Car title or manufacturer’s statement of origin

Bill of sale or purchase invoice

Odometer disclosure statement

Proof of insurance

Your driver’s license

Documents supporting ownership (if you are leasing or financing with an out-of-state dealer)

A method of paying all applicable fees

Don’t forget that you need to provide proof of insurance for your new vehicle that meets

Mississippi’s minimum insurance laws

. If necessary, you can usually get temporary insurance and temporary plates to help you legally transport your vehicle to your home.

Once all of your forms are submitted, and your fees are paid, you will be issued a Mississippi title and license plate.

MORE:

Title transfer in Mississippi

How to buy a car in Mississippi if you live out of state

Buying a car in Mississippi if you live in another state looks much the same as the process outlined above. However, the details will vary depending on your home state. In most cases you will need to:

Obtain a valid bill of sale (some states require a notary stamp on the bill of sale)

Bring the bill of sale, vehicle title, your driver’s license, proof of insurance, odometer disclosure, and any other required documents to your local Department of Motor Vehicle (DMV)

Complete the vehicle registration for your state of residency

Remember that you must pay sales tax in your home state!

What if I don’t have a physical title?

Mississippi requires that you submit a paper copy of the vehicle title. Some states use electronic titles, and if that is the case, you will have to request a physical copy of the original title from the DMV in that state.

If the title is lost or is being withheld by a lienholder, you can also submit a request for a duplicate title. Again this would need to be done at the DMV in the state where the vehicle is currently registered.

If you’re financing the vehicle, the process gets a little complicated, because the title request will usually have to go through the dealer as a lienholder. In this case, you will have to work with the dealer to organize the paperwork. This might involve paying the lien in full, obtaining a duplicate title to submit, or getting a temporary registration so you can drive home while the paperwork is processed.

MORE:

Buy a car in Mississippi

Tips for buying a vehicle out of state

Buying a car from out of state might add a bit of complexity to the registration process, but it can be worthwhile if it means getting a better deal or finding a one-of-a-kind car. Here are a few tips to help the process go smoothly:

Make sure you get a vehicle report, especially if you are buying used from a private seller.

Schedule your vehicle inspection in your home state.

Don’t forget an emissions test. Mississippi is unique in that it doesn't require safety or emissions testing, but most other states do!

Know the tax situation. You pay taxes based on your home state, but some states have reciprocal tax agreements that you should know about.

Buy the car insurance before you leave the dealership. If you plan to drive your car home, you need to carry insurance for it to be street-legal!

MORE:

Car inspection in Mississippi

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