Mississippi long held the highest grocery tax in the US, but HB 1 (March 2025) reduced the grocery tax from 7% to 5% effective July 1, 2025 — still one of the highest grocery taxes nationally, but a meaningful reduction. General merchandise remains at 7%. The state's combined average rate (7.07%) is moderate.
Mississippi sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 7.00% |
| Avg local add-on | 0.070% |
| Avg combined | 7.07% |
| Maximum combined | 7.50% |
Note: Mississippi reduced its grocery sales tax from 7% to 5% effective July 2025 (HB 1, 2025). General merchandise still taxed at the standard 7% state rate.
Mississippi sales tax by city
Combined state + local sales tax rates for major cities in Mississippi:
| City | Combined Rate |
|---|---|
| Jackson | 7.00% |
| Gulfport | 7.00% |
What's exempt in Mississippi
Groceries
Reduced state rate: 5.00% (vs. 7.00% general). Local rates may still apply.
Clothing & footwear
Taxed at standard rate.
Prescription drugs
Exempt from sales tax (typical across most states).
Mississippi sales tax holidays
During a sales tax holiday, qualifying items are exempt from Mississippi sales tax. Some local jurisdictions may opt out — check with retailers near you.
Back-to-School
Last Friday of July & Saturday
Clothing & footwear ≤$100
2nd Amendment
Last weekend of August
Firearms, ammunition, hunting supplies
How Mississippi sales tax is calculated
Sales tax in Mississippi is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 7.07% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (7.00%) plus any local city or county add-ons. Mississippi allows local jurisdictions to add their own taxes, so the rate varies by location.
Quick calculation examples at average rate 7.07%:
$100 item
$7.07 tax
$107.07 total
$250 item
$17.68 tax
$267.68 total
$500 item
$35.35 tax
$535.35 total
$1,000 item
$70.70 tax
$1070.70 total
Additional tax-free items in Mississippi
Beyond the standard exemptions, Mississippi also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the Mississippi Department of Revenue for complete rules.
Mississippi sales tax in context: rates, history, and neighbors
Mississippi's 7% state sales tax has been at this level since 1992 — among the most stable rates nationally. Local sales taxes are very limited in Mississippi — most counties don't add anything, keeping combined rates near 7% statewide. Mississippi reduced its grocery sales tax from 7% to 5% effective July 2025 (HB 1, 2025) — a major policy change after decades of debate over the highest US grocery tax. General merchandise remains at 7%. Mississippi's annual back-to-school holiday and 2nd Amendment holiday provide periodic relief. Compared to neighbors: Tennessee (~9.55% combined), Alabama (~9.31%), Arkansas (~9.44%), Louisiana (~10.01%) — Mississippi's 7% combined is significantly lower than its Deep South neighbors due to minimal local taxation. For shoppers in border areas, Mississippi can be more affordable than crossing into TN, AL, or AR.
Online shopping & Mississippi sales tax
Mississippi enacted economic nexus effective September 2018 — remote sellers with $250,000+ in Mississippi sales must collect and remit Mississippi sales tax. Mississippi uses a higher threshold than most states ($250K vs the $100K standard). Marketplace facilitators collect Mississippi tax on third-party sales through their platforms.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect Mississippi sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your Mississippi state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much Mississippi sales tax on common purchases?
Using Mississippi's average combined rate of 7.07%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | $7.61 | $157.60 |
| Clothing / shoes | $120 | $8.48 | $128.48 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $70.63 | $1069.63 |
| Laptop / tablet | $1,299 | $91.84 | $1390.84 |
| New car ($35,000) | $35,000 | $2474.50 | $37474.50 |
| Home appliance | $1,500 | $106.05 | $1606.05 |
| Restaurant meal | $60 | $4.24 | $64.24 |
Based on Mississippi's average combined rate of 7.07%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in Mississippi: business guide
If you sell goods or taxable services to Mississippi customers, here's what you need to know:
- Registration: Register for a Mississippi sales tax permit/license through the Mississippi Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in Mississippi annual sales or 200+ transactions, you must collect Mississippi sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). You must collect both state (7.00%) and applicable local rates.
- Destination vs origin sourcing: Mississippi uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your Mississippi sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the Mississippi Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit Mississippi sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a Mississippi resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): Mississippi is not currently a member of the Streamlined Sales Tax (SST) Agreement — check Mississippi Department of Revenue for filing specifics.
Mississippi-specific business compliance details
Mississippi businesses register with the Mississippi Department of Revenue (DOR) at dor.ms.gov for a Mississippi Sales Tax Permit. Filing frequency: monthly for $300+/month tax, quarterly for $50-$300, annually for under $50. Out-of-state sellers with $250,000+ in Mississippi sales must collect Mississippi tax (economic nexus, since September 2018) — Mississippi uses a higher threshold than most states' $100K. Marketplace facilitators collect Mississippi tax. Mississippi uses destination-based sourcing. Mississippi taxes most digital products. The 2025 grocery tax reduction (7% → 5%) requires retailers to update POS systems and properly classify food items. Penalties: 10% of unpaid tax + interest. Mississippi DOR is generally taxpayer-friendly with reasonable enforcement; multi-state compliance is simplified by the limited local taxation.
Mississippi sales tax frequently asked questions
What is Mississippi's grocery sales tax in 2026?
Mississippi reduced its grocery sales tax from 7% to 5% effective July 1, 2025 (under HB 1, 2025). This is still one of the higher grocery taxes in the US — only a few states tax groceries at the full general rate. The reform was a major win for consumer advocates after decades of debate. General merchandise (non-food) remains taxed at the standard 7% state rate.
What is Mississippi's 2nd Amendment sales tax holiday?
Mississippi's 2nd Amendment Sales Tax Holiday takes place on the last weekend of August (Friday through Sunday). Firearms, ammunition, and hunting supplies are exempt from Mississippi's 7% sales tax. This holiday is unique nationally — most states' tax holidays focus on back-to-school items. Mississippi also has a Back-to-School holiday on the last weekend of July.
What is the combined sales tax rate in Jackson, Mississippi?
Jackson's combined sales tax rate is 7% — just the state rate with minimal local add-on. Most of Mississippi has very low local taxes, unlike Deep South neighbors like Louisiana and Alabama. The state's max combined rate is 7.5% in some jurisdictions. For major retail purchases, Mississippi offers relative simplicity: 7% nearly everywhere.