JACKSON — Car tag fees in Mississippi are the second-highest in the nation and often exceed $1,000 annually, according to a new report released by the Mississippi Office of the State Auditor.
The report also found that the cost of vehicle tags is difficult for taxpayers to predict due to a complex pricing formula and a lack of publicly available information.
“Taxpayers all over the state have talked to me about how complex and expensive it is to get a car tag,” State Auditor Shad White said in a statement. “They complain for a good reason: it’s hard for the average family to know how and why that bill is so big when they pay it.”
According to the analysis, there is no easy way for residents to calculate the cost of a car tag ahead of time. Portions of the pricing formula are not published online, including the amount of the Legislative Tag Credit, which can account for as much as half of a tag’s total cost, and the depreciation schedule used to determine a vehicle’s value.
Auditors also noted that car tag costs can vary widely depending on location, meaning two residents living only a short distance apart could pay significantly different amounts to tag the same type of vehicle.
After determining that taxpayers lacked access to the full pricing formula, the auditor’s office compiled the complete car tag calculation, along with millage rates for the 2024–2025 fiscal year across Mississippi. The information is intended to help residents better understand how their vehicle tag fees are determined.
The full report is available on the auditor’s website under the “Reports” tab by searching for “Car Tag.”
