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Grocery tax drops in Mississippi, giving families some room in the cart


GROCERIESMississippi families are getting a little relief at the checkout line.

As of July 1, the state grocery sales tax dropped from 7% to 5% under the Build Up Mississippi Act. For Leland households, where groceries eat up a large share of monthly income, that means real savings about $4 off a $200 grocery trip.

What’s in the Build Up Mississippi Act:

  • Grocery Tax Cut:
The statewide grocery tax is now 5%, down from 7% — once the highest in the nation.
  • Income Tax Phase-Out:
Starting in 2027, Mississippi’s 4.4% income tax will drop gradually to 3% by 2030, with further cuts tied to revenue performance (Associated Press, March 27, 2025).
  • Gas Tax Increase:
The gas tax rose from 18.4¢ to 21¢ per gallon this year and will increase to 27¢ by 2027.
  • Local Grocery Tax Option in 2026:
Counties and cities may soon vote to add up to 1.5% in local grocery tax, though combined rates can’t exceed the former 7% cap.

Why it matters in Leland:

With many families living on fixed incomes or commuting long distances, even small savings make a difference. And when residents spend less on groceries, they often spend more in local stores, which is a win for small businesses.

Critics caution that rising gas prices and local tax add-ons could undercut those gains. But, for now, Leland shoppers are seeing real savings at the register.

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