Groceries are fully taxable at local rates. Click here for a larger sales tax map, or here for a sales tax table.. Food Delivery Services Exempt in Mississippi. Thirty-eight states impose no tax on food. Tennessee – grocery items and ingredients are taxable, but taxed at a reduced state rate of 4%. Three states (Alabama, Mississippi, and South Dakota) continue to apply their sales tax fully to food purchased for home consumption without providing any offset for low- and moderate-income families. Mississippi has a statewide sales tax rate of 7%, which has been in place since 1930. Usually, the vendor collects the sales tax from the consumer as the consumer makes a purchase. Mississippi, the poorest state in the nation, is one of three states to levy the same sales tax on groceries as on other retail items. Table 1: Sales Tax Treatment of Groceries, Candy & Soda, as of July January 1, 2019 (a) Alaska, Delaware, Montana, New Hampshire, and Oregon do not levy taxes on groceries, candy, or soda. As a result of Mississippi’s marketplace nexus legislation which became effective on July 1, 2020, Mississippi sales tax no longer applies to sales of food through third-party delivery services that allow customers to order food to be delivered from a restaurant and pay for the food through the delivery service’s app or website. Mississippi sales tax is 7 percent. Oklahoma sales tax on food is 4.5 percent, with an exclusion for prescription drugs. A sales tax is a consumption tax paid to a government on the sale of certain goods and services. Missouri sales tax is 4.225 percent, but Missouri taxes food at 1.225 percent. The following is a list of the states that do tax groceries, and if applicable, which ones apply a special rate on grocery items. South Carolina – Unprepared food that can be purchased with federal food stamps is exempt from state sales and use tax, but may be subject to other local sales and use taxes. (b) Three states levy mandatory, statewide, local add-on sales taxes: California (1%), Utah (1.25%), and Virginia (1%). This website provides information about the various taxes administered, access to online filing, and forms. Prescription drugs are exempt, but Mississippi taxes groceries at this rate. The Tax Foundation is often asked which states exempt certain items from their general sales taxes, especially as they relate to food. The maximum local tax rate allowed by Mississippi law is 1%. This means that, depending on your location within Mississippi, the total tax you pay can be significantly higher than the 7% state sales tax. In most countries, the sales tax is called value-added tax (VAT), or goods and services tax (GST), which is a different form of consumption tax. Welcome to The Mississippi Department of Revenue The Department of Revenue is the primary agency for collecting tax revenues that support state and local governments in Mississippi. Municipal governments in Mississippi are also allowed to collect a local-option sales tax that ranges from 0% to 1% across the state, with an average local tax of 0.052% (for a total of 7.052% when combined with the state sales tax). Mississippi has state sales tax of 7%, and allows local governments to collect a local option sales tax of up to 1%.There are a total of 176 local tax jurisdictions across the state, collecting an average local tax of 0.052%. Mississippi has a 7% statewide sales tax rate, but also has 176 local tax jurisdictions (including cities, towns, counties, and special districts) that collect an average local sales tax of 0.052% on top of the state tax. Local governments, which in many states levy their own sales taxes, usually exempt food if food is exempt at the state level.