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Sales tax deduction in Mississippi

Varies

Is Sales Tax Deductible in Mississippi?

Short answer: Only instead of income tax: itemizers in Mississippi pick sales tax (7% state rate, about 7.06% with local taxes) or state income tax, whichever is bigger. Groceries (SNAP-eligible food) are taxed at a reduced 5% since July 1, 2025 (down from 7%); prepared and hot food stays at 7%.

Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).

Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.