- Mississippi reduces sales tax on groceries from 7 percent to 5 percent starting July 1, 2025
- Change is part of House Bill 1
- Groceries refer to food or drink eligible for purchase with food stamps
- Items bought with food stamps remain exempt from sales tax
- Non-eligible items remain taxable at 7 percent
- Retailers need to adjust systems for the change by July 1, 2025
- Mississippi retailers report grocery sales at 5 percent using rate code 40
- Other retail sales reported at 7 percent using rate code 74
- Out-of-state retailers report grocery sales at 5 percent using rate code 41
- Other retail sales reported at 7 percent using rate code 75
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United States"
- U.S. Sales Tax Explained: Key Rules, Nexus, Exemptions, and Compliance Steps for Businesses
- Utah Approves New Emergency Services Sales Tax and Modifies Rural Health Care Tax Rules
- Committee Urges Voters to Renew 1% Sales Tax for Bibb County School Improvements
- Florida DOR Proposes Changes to Sales Tax Rules for Export Sales and Documentation Requirements
- Washington Imposes Sales Tax on Digital Ads: Higher Costs for Amazon Sellers Starting October 2025
