State guide · MS
Mississippi sales tax and property tax
One of the few states that still taxes groceries, now at a lower rate, a schedule of special rates for vehicles and machinery, and homes assessed at a tenth of their value.
Facts read on official Mississippi pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 7%
- Local sales taxes
- Yes, by address
- Groceries
- Reduced state rate, 5%
- Clothing
- Taxed like other goods
- Median property tax
- $1,221
- Effective property rate
- 0.66% · #34 of 51
Mississippi still taxes food for home, but since July 1, 2025 at 5% instead of the general 7%, under House Bill 1 of the 2025 session; purchases paid with SNAP benefits are exempt. The state rate is the rate almost everywhere, because Mississippi has no general local option sales tax: the local extras are tourism and economic development taxes, typically 1% to 3% on restaurants and hotels, each created by its own act of the Legislature. Reduced state rates cover cars and light trucks at 3%, heavy trucks, aircraft and manufactured homes at 1.5%, and farm and manufacturing machinery at 0%. Prescription drugs and residential utilities are exempt, and clothing under $100 is tax free during a July weekend. Property tax is among the lightest in the country: the Census median is $1,221 on a $186,500 home, 0.66% of value, rank 34 of 51. Owner-occupied homes are assessed at 10% of true value, and the homestead exemption gives a credit of up to $300, or far more for owners 65 or older.
Total to pay
$107.00
Sales tax $7.00 · 7% of the price
| Price before tax | $100.00 |
| State tax · 7% | $7.00 |
| Local tax · 0% | $0.00 |
| Total | $107.00 |
Rule applied: general state rate. How this is calculated.
Sales tax in Mississippi
The grocery cut is the change that shows on a weekly receipt. Food that qualifies for SNAP but is bought with cash or a card now pays 5%: a $160 cart costs $8.00 in tax, against $11.20 before July 2025. Paid with SNAP benefits, the same cart is exempt. Food from a full-service vending machine pays 0%, and hot or prepared food stays at 7%.
Instead of a county or city rate on everything, Mississippi lets the Legislature authorize specific local taxes town by town, mostly on restaurant meals and hotel rooms, each with its own rate and often a repeal date; the Department of Revenue collects them. For a purchase in a shop, the calculator above therefore needs no local rate; for a restaurant bill, add the local tourism tax if the town has one. Alcoholic beverages have carried no sales tax since July 1, 2022 and beer since July 1, 2023, because other levies apply to them.
The rate schedule for big purchases is what sets Mississippi apart. A $32,000 pickup of 10,000 pounds or less pays 3%, or $960, while a boat, motorcycle or ATV pays the full 7%. A $90,000 farm tractor pays only 0%, $0. Short car rentals add a 8% rental tax. Residential electricity, fuels and water are exempt, while commercial users pay 7%. The July 10 to July 12, 2026 holiday exempted clothing, footwear and school supplies priced under $100 each.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 7% | yes | 7% on retail sales of tangible personal property; groceries 5% since July 1, 2025 (House Bill 1, 2025 session). Many reduced rates: 5% cars and light trucks, 3% heavy trucks, aircraft and manufactured homes, 1.5% farm and manufacturing machinery. There is no general local option sales tax; specific cities and counties levy tourism and economic development taxes authorized by the Legislature. |
| Groceries (food for home) | 5% | yes | Since July 1, 2025 groceries (food or drink for human consumption eligible for SNAP but not bought with SNAP) are taxed at 5% instead of 7%; purchases made with SNAP benefits are exempt. |
| Clothing | 7% | yes | Clothing is taxed at the regular 7% rate except during the July sales tax holiday (items under $100). |
| Prescription drugs | 0% | no | |
| Automobiles and light trucks (10,000 lbs or less) | 5% | ||
| Trucks over 10,000 lbs, aircraft, semitrailers, mobile and modular homes | 3% | ||
| Farm tractors, farm implements and manufacturing machinery | 1.5% | ||
| Residential electricity, fuels and water | 0% | Commercial electricity and fuels stay at 7%. | |
| Short-term motor vehicle rentals (30 days or less, 10,000 lbs or less) | 6% | In addition to the 5% sales tax. | |
| Food and drinks from full-service vending machines | 8% |
Local sales taxes
Levied by city- and county-specific tourism and economic development taxes authorized by the Legislature (mostly on restaurants, hotels and motels, e.g. 1% to 3%), collected by the Department of Revenue; no general local sales tax. Each levy has its own rate and often a repeal date set by local and private legislation.
Sales tax holidays in 2026
| Holiday | Dates | What qualifies |
|---|---|---|
| Mississippi Sales Tax Holiday | July 10, 2026 to July 12, 2026 | clothing, footwear and school supplies priced under $100 per item |
The Department published guides for a Second Amendment Sales Tax Holiday through 2025; no 2026 guide was found on the notices page.
Worth knowing about Mississippi sales tax
- Mississippi cut its grocery tax from 7% to 5% on July 1, 2025 under House Bill 1, but groceries remain taxed, unlike in most states. source
- The 2026 back-to-school holiday ran July 10-12: no tax on clothing, shoes and school supplies under $100 each. source
- Cars and light trucks are taxed at 5% rather than 7%; boats, motorcycles and ATVs pay the full 7%. source
- Alcoholic beverages have carried 0% sales tax since July 1, 2022 and beer since July 1, 2023 (taxed through other levies). source
- Many towns add their own 1% to 3% tourism tax on restaurant meals and hotel rooms, each created by a separate act of the Legislature. source
- Residential electricity, heating fuels and water are exempt, while commercial users pay 7%. source
Property tax in Mississippi
Mississippi sorts property into five classes, each assessed at a share of its true value fixed by the constitution: 10% for an owner-occupied single-family home, 15% for other real estate and for personal property, and 30% for utility property and motor vehicles. The county tax assessor appraises, real property is revalued at least every four years, and counties, cities, school districts and special districts levy their millages on the assessed figure. On the Census median home of $186,500, assessed value is $18,650, so each mill costs about $18.65 before exemptions; the same house rented out would be assessed at $27,975.
The homestead exemption has three tiers. Owners under 65 get a credit of up to $300 a year, depending on value. Owners 65 or older, or totally disabled, are exempt from tax on the first $7,500 of assessed value, which is $75,000 of true value, and after the first year this tier can stretch to cover most later increases in value; reaching 65 requires a new application to move up. Honorably discharged veterans aged 90 or older and their unremarried surviving spouses pay nothing on the homestead. File with the county tax assessor between January 1 and April 1, after owning the home before January 1 and recording the deed before January 7.
The exemption can be taken back retroactively if the owner fails to file a Mississippi income tax return or to register vehicles properly, so the paperwork matters. Taxes on the previous year's assessment are due by February 1. For scale, 0.66% of a $250,000 home is about $1,638 a year.
Property tax on a home in Mississippi
Typical bill per year
$1,222
| Per month | $102 |
| Median effective rate in Mississippi | 0.66% |
| Median bill paid | $1,221 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Mississippi |
|---|---|
| Median home value (owner-occupied) | $186,500 |
| Median real estate taxes paid | $1,221 |
| with a mortgage | $1,482 |
| without a mortgage | $867 |
| Effective rate (tax ÷ value) | 0.66% |
| Rank by effective rate (1 = highest) | 34 of 51 |
| Rank by median bill | 47 of 51 |
How the taxable value is set
Property is appraised at true value and multiplied by a constitutional assessment ratio: Class I owner-occupied single-family homes 10%; Class II other real property 15%; Class III personal property 15%; Class IV public utility property 30%; Class V motor vehicles 30%. Real property must be revalued at least every four years. Who levies the tax: counties, municipalities, school districts and special districts; the county Tax Assessor appraises property and the Department of Revenue (as Tax Commission) supervises uniformity
Payment calendar: Taxes are due on or before February 1 for property assessed the preceding year (next business day if February 1 falls on a weekend or holiday).
Other property tax relief
- Age/disability homestead (Tier 2). Exempts the first $75,000 of true value for owners 65+ or totally disabled; after the first year it can grow to cover most future increases in value. source
Worth knowing about Mississippi property tax
- An owner-occupied home is assessed at 10% of its true value, other real estate at 15%, and cars at 30%. source
- The regular homestead exemption is a credit of up to $300 a year; at 65 owners must reapply to move to the larger tier. source
- Homestead exemption can be disallowed retroactively for failing to file or pay Mississippi income tax or to register vehicles properly. source
- Property taxes for the previous year's assessment are due by February 1. source
- Veterans aged 90 or older (and their unremarried surviving spouses) pay no property tax on their homestead. source