Mississippi’s grocery tax is 5%, a reduced state sales tax rate that took effect July 1, 2025, under House Bill 1. The lower rate applies only to food and drink that would be eligible for purchase with Supplemental Nutrition Assistance Program (SNAP) benefits. Items that fall outside that definition, including prepared food, alcohol, and household supplies, remain at Mississippi’s standard 7% sales tax rate.1Mississippi Department of Revenue. Reduced Sales Tax on Groceries Begins July 1
Before July 2025, groceries were taxed at the same 7% rate as other retail sales of tangible personal property under Miss. Code Ann. § 27-65-17.2Justia. Mississippi Code 27-65-17 – Selling Tangible Personal Property Wholesale and Retail No further scheduled reductions to the grocery rate are on the books.
What Counts as a Grocery at 5%
The statute uses a simple test: if an item is eligible for purchase with SNAP benefits, it gets the 5% rate. That covers most of what fills a typical grocery cart, including fresh produce, meat, poultry, seafood, dairy, bread, cereal, canned goods, frozen meals, snack foods, and non-alcoholic beverages.3Mississippi Department of Revenue. Sales Tax Rates Seeds and plants that produce food for household consumption also qualify under federal SNAP rules.
Because grocery point-of-sale systems already flag SNAP-eligible items, retailers apply the 5% rate automatically to those products at checkout.
What Stays at the 7% Rate
Several things you can buy at a Mississippi grocery store do not meet the SNAP-eligible definition and are still taxed at the full 7%:
- Prepared and hot food, including deli meals, rotisserie chickens, and anything sold ready to eat.
- Alcohol and tobacco products.
- Household non-food items such as cleaning supplies, paper towels, trash bags, and pet food.
- Feminine hygiene products, baby wipes, diapers, and baby formula, which are not currently exempt.4Mississippi Legislature. SB 2872 – As Introduced
- Over-the-counter medications. Mississippi’s drug exemption under § 27-65-111(h) applies only to prescription medications dispensed by a pharmacist or furnished by a licensed physician.5Mississippi Legislature. House Bill 281 – As Introduced
A single receipt will often show both rates. If your cart holds produce, canned goods, laundry detergent, ibuprofen, and a rotisserie chicken, the register splits the tax between the 5% items and the 7% items.
When Groceries Are Fully Exempt
Food purchased with SNAP benefits pays no sales tax at all. Section 27-65-111(o) exempts retail sales of food for human consumption bought with food stamps issued by the United States Department of Agriculture.6FindLaw. Mississippi Code Title 27 Taxation and Finance 27-65-111 Food purchased through the Women, Infants, and Children (WIC) program is also exempt under § 27-65-111.7Mississippi Department of Revenue. Sales Tax Exemptions
The 5% rate and the SNAP exemption are different things. The 5% rate applies when a shopper buys SNAP-eligible items with cash or a credit card. When those same items are paid for with actual SNAP benefits, the tax drops to zero. If a single transaction mixes SNAP benefits and cash, only the cash portion of the qualifying food is taxed at 5%.
Local Sales Tax on Groceries
Mississippi’s general sales tax law does not broadly let cities stack additional sales tax on top of the state rate for grocery purchases. Certain localities and levee districts have authority to impose limited local sales taxes, but these are typically restricted to specific industries like lodging, restaurants, and bars rather than retail grocery sales. In most parts of the state, shoppers pay only the state rate on groceries.
Pending Bills That Could Change Your Receipt
Two bills introduced in the 2026 legislative session could remove sales tax from items currently stuck at 7%. Neither has passed.
Senate Bill 2872 would exempt feminine hygiene products, baby formula, baby wipes, children’s and adult diapers, and diaper cream from sales tax entirely. The bill has been referred to the Finance Committee.4Mississippi Legislature. SB 2872 – As Introduced
House Bill 281 would exempt non-prescription over-the-counter drugs and medications. If it passes, items such as cold medicine and pain relievers would no longer be taxed at the register.5Mississippi Legislature. House Bill 281 – As Introduced