Mississippi Lowers Grocery Sales Tax to 5% Starting July 2025

• 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.

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