Earlier this year Mississippi passed HB1 which reduces the state sales and use tax rate on groceries for human consumption from 7% to 5% starting on July 1, 2025.
Per the bill, the term “groceries” refers to food or drink for human consumption that is eligible to be purchased with food stamps. Items purchased with food stamps will continue to remain exempt from sales tax. Items that are not eligible to be purchased with food stamps will remain taxable at 7%
HB 1 can be viewed in its entirety here.
