Mississippi sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 7% |
| Local rates | Average 0.06%, highest 1.00% |
| Average combined rate | 7.06% |
| Groceries | 5% (since July 2025)SNAP-eligible food and drink is taxed at 5%, down from 7% on 1 July 2025. Hot prepared food and alcohol stay at 7%. |
| Prescription drugs | ExemptPrescription drugs are exempt from Mississippi sales tax. |
| Clothing | Taxed (July holiday, $100 cap)Clothing is taxed at 7%, except items under $100 during the July sales tax holiday (10 to 12 July in 2026). |
Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the Mississippi DOR: Tourism and economic development (local) taxes.
Worked examples
$150 of groceries at the 5% rate
| Rate | 5% |
|---|---|
| Price before tax | $150.00 |
| Sales tax | $7.50 |
| Total | $157.50 |
Working: $150.00 × 5% = $7.50. Groceries pay 5% since July 2025. Before the cut, the same bill was taxed at 7%, $3 more.
Working back from a $108.00 receipt in Jackson (8%)
| Rate | 7% state + 1% local = 8% |
|---|---|
| Price before tax | $100.00 |
| Sales tax | $8.00 |
| Total | $108.00 |
Working back: $108.00 ÷ 1.08 = $100.00, so the tax was $8.00. Jackson's 1% infrastructure tax applies to items taxed at 7%, so divide by 1.08. Outside Jackson, most receipts use 7%.
The 2025 grocery tax cut
A 2025 law (House Bill 1) cut the sales tax on groceries from 7% to 5% from 1 July 2025. "Groceries" means food and drink for people that could be bought with SNAP benefits but is paid for another way; purchases actually made with SNAP are exempt. Hot deli meals, restaurant food and alcohol stay at 7%. For most families this is a 2-point cut on the biggest weekly purchase, worth $2 on every $100 of groceries.
Local levies and the July holiday
Mississippi does not have general county or city sales taxes. Instead, a few cities have special levies approved by the Legislature, listed by the Department of Revenue as tourism and economic development taxes. Jackson's 1% special infrastructure tax applies only to sales taxed at 7% or more, so it does not apply to groceries; Tupelo's water procurement tax applies to groceries again from 1 May 2026. Mississippi's back-to-school sales tax holiday ran from 10 to 12 July 2026, exempting clothing, footwear and school supplies under $100 per item.
Mississippi vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| Mississippi | 7% | 7.06% | 5% (since July 2025) |
| Louisiana | 5% | 10.13% | No state tax; local may apply |
| Arkansas | 6.5% | 9.48% | No state tax since 2026; local |
| Tennessee | 7% | 9.61% | 4% state + local |
| Alabama | 4% | 9.46% | 2% state + local |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.