Tax adjustments among new laws in Mississippi effective today

July 1, 2025 – With the turning of the calendar page to July, several new laws went into effect in the state of Mississippi today.

Most impactful laws are a result of the 2025 House Bill 1. Also known as the “Build Up Mississippi Act”, the measure focuses on significant tax changes, including the eventual elimination of the state income tax, a reduction in the sales tax on groceries, and adjustments to fuel taxes. The bill also includes provisions related to retirement systems and infrastructure funding.

Even if you did not see your posted gas pump price rise by three cents a gallon this morning, that much more of your actual fuel price will now head to state coffers.

At the same time, you were charged two percent less on your grocery bill because the state sales tax for groceries was reduced to five percent from seven percent.

These are just some of the changes enacted in the 2025 legislative session. This image gives an overview of some others:

The following document, from the Mississippi House of Representatives, is a more complete rundown of major new legislation.