Grocery Sales Tax Drops to 5 Percent in Mississippi

Mississippi families will soon see a break at the checkout line. Beginning July 1, the state’s sales tax on groceries drops from 7 percent to 5 percent. This change aims to help working families keep more of their hard-earned money when buying food.

The reduction applies to all grocery purchases, except those made with food stamps, which remain tax exempt. If you’re a business owner or manage a grocery store, make sure your systems and staff are ready for the new tax rate starting July 1.

What qualifies as groceries?

Groceries are foods typically prepared at home and do not include alcohol, tobacco, or hot prepared foods. Items bought with SNAP (food stamps) stay tax free, and WIC-approved foods remain exempt from sales tax.

This is the first cut in Mississippi’s grocery sales tax since 1992. The new 5 percent rate is statewide and affects all Mississippi shoppers.

If you have questions or need more details, contact the Mississippi Department of Revenue.

This is real relief for Moss Point and families across our state. Watch for the lower rate this summer and let your friends and neighbors know about the savings.