Introduction
Sales tax rates vary widely by state, with some states charging no sales tax at all. The states with the lowest sales tax rates are Alaska, Delaware, Montana, New Hampshire, and Oregon, all of which charge no sales tax. On the other hand, California has the highest sales tax rate at 7.25%, followed closely by Tennessee, Rhode Island, Mississippi, and Indiana, all of which have a sales tax rate of 7%.
In general, there is no clear regional trend in sales tax rates, with high and low tax states spread throughout the country. Some states have higher sales tax rates to make up for lower property or income taxes, while others rely on sales tax revenue to fund their state budgets. Some states also have variable sales tax rates depending on the type of goods or services being purchased, while others have a flat rate across all purchases. It is important to note that while sales tax rates can vary significantly, local taxes may also apply on top of state rates.
US Sales Tax
| # | State | Sales Tax Rate | Sales Tax | Contribution of Sales Tax to State Revenue | State-Local Tax Burden |
|---|---|---|---|---|---|
| 1 | Alaska | 0% | No | 2.17% | 4.6% |
| 2 | Delaware | 0% | No | 12.4% | |
| 3 | Montana | 0% | No | 10.5% | |
| 4 | New Hampshire | 0% | No | 9.6% | |
| 5 | Oregon | 0% | No | 10.8% | |
| 6 | Colorado | 2.9% | 14.06% | 9.7% | |
| 7 | Alabama | 4% | 12.56% | 9.8% | |
| 8 | Georgia | 4% | 12.72% | 8.9% | |
| 9 | Hawaii | 4% | 22.11% | 14.1% | |
| 10 | New York | 4% | 10.12% | 15.9% | |
| 11 | Wyoming | 4% | 9.85% | 7.5% | |
| 12 | Missouri | 4.23% | 13.58% | 9.3% | |
| 13 | Louisiana | 4.45% | 18.1% | 9.1% | |
| 14 | Oklahoma | 4.5% | 15.92% | 9% | |
| 15 | South Dakota | 4.5% | 21.12% | 8.4% | |
| 16 | North Carolina | 4.75% | 12.69% | 9.9% | |
| 17 | North Dakota | 5% | 11.84% | 8.8% | |
| 18 | Wisconsin | 5% | 11.2% | 10.9% | |
| 19 | New Mexico | 5.13% | 16.22% | 10.2% | |
| 20 | Virginia | 5.3% | 8.28% | 12.5% | |
| 21 | Maine | 5.5% | 11.6% | 12.4% | |
| 22 | Nebraska | 5.5% | 12.49% | 11.5% | |
| 23 | Arizona | 5.6% | 20.26% | 9.5% | |
| 24 | Ohio | 5.75% | 13.38% | 10% | |
| 25 | District of Columbia | 6% | 11.16% | 12% | |
| 26 | Florida | 6% | 17.89% | 9.1% | |
| 27 | Idaho | 6% | 14.12% | 10.7% | |
| 28 | Iowa | 6% | 9.96% | 11.2% | |
| 29 | Kentucky | 6% | 9.9% | 9.6% | |
| 30 | Maryland | 6% | 7.22% | 11.3% | |
| 31 | Michigan | 6% | 10.18% | 8.6% | |
| 32 | Pennsylvania | 6% | 9.24% | 10.6% | |
| 33 | South Carolina | 6% | 9.57% | 8.9% | |
| 34 | Vermont | 6% | 5.59% | 13.6% | |
| 35 | West Virginia | 6% | 8.92% | 9.8% | |
| 36 | Utah | 6.1% | 12.1% | 12.1% | |
| 37 | Illinois | 6.25% | 11.66% | 12.9% | |
| 38 | Massachusetts | 6.25% | 7.96% | 11.5% | |
| 39 | Texas | 6.25% | 18.44% | 8.6% | |
| 40 | Connecticut | 6.35% | 10.32% | 15.4% | |
| 41 | Arkansas | 6.5% | 17.92% | 10.2% | |
| 42 | Kansas | 6.5% | 15% | 11.2% | |
| 43 | Washington | 6.5% | 25.11% | 10.7% | |
| 44 | New Jersey | 6.63% | 9.97% | 13.2% | |
| 45 | Nevada | 6.85% | 24.08% | 9.6% | |
| 46 | Minnesota | 6.88% | 10.05% | 12.1% | |
| 47 | Indiana | 7% | 12.98% | 9.3% | |
| 48 | Mississippi | 7% | 13.43% | 9.8% | |
| 49 | Rhode Island | 7% | 9.2% | 11.4% | |
| 50 | Tennessee | 7% | 19.55% | 7.6% | |
| 51 | California | 7.25% | 10.86% | 13.5% |
States With Lowest Sales Tax
The ten states with the lowest sales tax are Alaska, Delaware, Montana, New Hampshire, Oregon, Colorado, Alabama, Georgia, Hawaii, and New York. Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax at all, while Colorado has the lowest sales tax rate among states that impose it, at 2.9%. Alabama and Georgia both have a 4% sales tax rate. Hawaii is the ninth state with the lowest sales tax at 4%. Finally, New York has the tenth lowest sales tax in the US with a 4% sales tax rate. It is worth noting that some of the states with no sales tax, such as Alaska and Montana, rely heavily on other types of taxes and revenue sources to make up for the lack of sales tax revenue.
Here are the ten states with the lowest sales tax:
1. Alaska – 0%
2. Delaware – 0%
3. Montana – 0%
4. New Hampshire – 0%
5. Oregon – 0%
6. Colorado – 2.9%
7. Alabama – 4%
8. Georgia – 4%
9. Hawaii – 4%
10. New York – 4%
Lowest Sales Tax in US
Alaska, Delaware, Montana, New Hampshire, and Oregon are the five states in the US that do not have a statewide sales tax. This means that when you make a purchase in any of these states, you won’t be charged any additional sales tax. Alaska’s lack of a sales tax is particularly noteworthy because it also does not have a state income tax. Delaware, on the other hand, is known for being a tax-friendly state, and its lack of a sales tax is one of the reasons why many shoppers and businesses choose to do business there. Montana and Oregon are both known for their natural beauty and outdoor activities, making them popular tourist destinations. Finally, New Hampshire’s lack of a sales tax is often touted as one of the reasons why it is a great state for retirees, who can stretch their retirement dollars further in a state with no sales tax.
States With Highest Sales Tax
The ten states with the highest sales tax are California, Tennessee, Rhode Island, Mississippi, Indiana, Minnesota, Nevada, New Jersey, Washington, and Kansas. California is the state with the highest sales tax with a rate of 7.25%. In Tennessee, the sales tax rate is 7%, making it the second highest sales tax in the US. Rhode Island has a sales tax rate of 7%, which is among the highest in the country. Mississippi has the fourth highest sales tax in the US at 7%. In Indiana, the sales tax rate is 7%, making it the fifth state with the highest sales tax. Minnesota has the sixth highest sales tax rate at 6.88%, while Nevada and New Jersey both have sales tax rates of 6.63% and 6.85%, respectively. Washington has the ninth highest sales tax in the US at 6.50%. Finally, Kansas is the tenth state with the highest sales tax with a rate of 6.5%, which is also among the highest in the Midwest.
The ten states with the highest sales tax rates are:
1. California – 7.25%
2. Tennessee – 7%
3. Rhode Island – 7%
4. Mississippi – 7%
5. Indiana – 7%
6. Minnesota – 6.88%
7. Nevada – 6.85%
8. New Jersey – 6.63%
9. Washington – 6.50%
10. Kansas – 6.50%
Highest Sales Tax in US
California has the highest sales tax in the US, with a rate of 7.25%. The state has a high sales tax rate because it relies heavily on sales tax revenue to fund its state budget. The revenue generated from sales tax is used to support various programs and services, such as education, healthcare, and infrastructure development. Additionally, California has one of the highest populations in the country, and a large consumer base means that the state can generate significant revenue from sales tax. California also has a reputation for having one of the highest costs of living, and the state’s sales tax rate is reflective of the higher costs associated with living and doing business in California.
Sales Tax per State
Alabama
Sales Tax Rate
4%
Ranked in the US
#7
Contribution of Sales Tax to State Revenue
12.56%
Ranked in the US
#22
Ranked in the US
#30
Alabama is the seventh state with the lowest sales tax with a rate of 4%. The state has a relatively low sales tax rate due to its reliance on other forms of taxation, such as property taxes and income taxes, to fund government services. Additionally, Alabama does not allow local jurisdictions to impose sales taxes, which helps to keep the overall sales tax rate low.
Alaska
Sales Tax Rate
0%
Ranked in the US
#1
Contribution of Sales Tax to State Revenue
2.17%
Ranked in the US
#47
Ranked in the US
#51
Alaska is the state with the lowest sales tax with a rate of 0%. The state does not have a state-level sales tax, and instead, relies on revenue from other sources like oil and gas.
Arizona
Sales Tax Rate
5.6%
Ranked in the US
#23
Contribution of Sales Tax to State Revenue
20.26%
Ranked in the US
#5
Ranked in the US
#37
Arkansas
Sales Tax Rate
6.5%
Ranked in the US
#41
Contribution of Sales Tax to State Revenue
17.92%
Ranked in the US
#9
Ranked in the US
#26
California
Sales Tax Rate
7.25%
Ranked in the US
#51
Contribution of Sales Tax to State Revenue
10.86%
Ranked in the US
#30
Ranked in the US
#5
California is the state with the highest sales tax with a rate of 7.25%. The state has a high sales tax rate to generate revenue and support various public services, such as healthcare, education, and infrastructure.
Colorado
Sales Tax Rate
2.9%
Ranked in the US
#6
Contribution of Sales Tax to State Revenue
14.06%
Ranked in the US
#15
Ranked in the US
#33
Colorado is the sixth state with the lowest sales tax with a rate of 2.9%. The state has a relatively low sales tax rate due to its Taxpayer's Bill of Rights (TABOR) legislation, which requires voter approval for any increase in taxes. As a result, Colorado's sales tax rate has remained relatively stable over the years.
Connecticut
Sales Tax Rate
6.35%
Ranked in the US
#40
Contribution of Sales Tax to State Revenue
10.32%
Ranked in the US
#31
Ranked in the US
#2
Delaware
Delaware is the state with the second-lowest sales tax rate in the US with a rate of 0%. The state does not impose any state-level sales tax, and instead, relies on revenue from corporate taxes and fees.
District of Columbia
Sales Tax Rate
6%
Ranked in the US
#25
Contribution of Sales Tax to State Revenue
11.16%
Ranked in the US
#29
Ranked in the US
#13
Florida
Sales Tax Rate
6%
Ranked in the US
#26
Contribution of Sales Tax to State Revenue
17.89%
Ranked in the US
#10
Ranked in the US
#40
Georgia
Sales Tax Rate
4%
Ranked in the US
#8
Contribution of Sales Tax to State Revenue
12.72%
Ranked in the US
#20
Ranked in the US
#43
Georgia is the eighth state with the lowest sales tax with a rate of 4%. The state has a relatively low sales tax rate due to its exemption of groceries and prescription drugs from sales tax.
Hawaii
Sales Tax Rate
4%
Ranked in the US
#9
Contribution of Sales Tax to State Revenue
22.11%
Ranked in the US
#3
Ranked in the US
#3
Hawaii is the ninth state with the lowest sales tax with a rate of 4%. The state has a relatively low sales tax rate due to its reliance on tourism as a major source of revenue. Hawaii's government prefers to keep sales tax low to attract tourists, who contribute to the state's economy through hotel stays and other purchases.
Idaho
Sales Tax Rate
6%
Ranked in the US
#27
Contribution of Sales Tax to State Revenue
14.12%
Ranked in the US
#14
Ranked in the US
#22
Illinois
Sales Tax Rate
6.25%
Ranked in the US
#37
Contribution of Sales Tax to State Revenue
11.66%
Ranked in the US
#26
Ranked in the US
#7
Indiana
Sales Tax Rate
7%
Ranked in the US
#47
Contribution of Sales Tax to State Revenue
12.98%
Ranked in the US
#19
Ranked in the US
#38
Indiana is the fifth state with the highest sales tax with a rate of 7%. The state's high sales tax rate is used to generate revenue for local and state services, such as infrastructure, public safety, and education.
Iowa
Sales Tax Rate
6%
Ranked in the US
#28
Contribution of Sales Tax to State Revenue
9.96%
Ranked in the US
#36
Ranked in the US
#18
Kansas
Sales Tax Rate
6.5%
Ranked in the US
#42
Contribution of Sales Tax to State Revenue
15%
Ranked in the US
#13
Ranked in the US
#19
Kansas is the tenth state with the highest sales tax with a rate of 6.50%. The state's high sales tax rate is due to a lack of other revenue sources, such as an income tax, and is used to fund education and public services.
Kentucky
Sales Tax Rate
6%
Ranked in the US
#29
Contribution of Sales Tax to State Revenue
9.9%
Ranked in the US
#37
Ranked in the US
#34
Louisiana
Sales Tax Rate
4.45%
Ranked in the US
#13
Contribution of Sales Tax to State Revenue
18.1%
Ranked in the US
#8
Ranked in the US
#41
Maine
Sales Tax Rate
5.5%
Ranked in the US
#21
Contribution of Sales Tax to State Revenue
11.6%
Ranked in the US
#27
Ranked in the US
#10
Maryland
Sales Tax Rate
6%
Ranked in the US
#30
Contribution of Sales Tax to State Revenue
7.22%
Ranked in the US
#45
Ranked in the US
#17
Massachusetts
Sales Tax Rate
6.25%
Ranked in the US
#38
Contribution of Sales Tax to State Revenue
7.96%
Ranked in the US
#44
Ranked in the US
#14
Michigan
Sales Tax Rate
6%
Ranked in the US
#31
Contribution of Sales Tax to State Revenue
10.18%
Ranked in the US
#32
Ranked in the US
#46
Minnesota
Sales Tax Rate
6.88%
Ranked in the US
#46
Contribution of Sales Tax to State Revenue
10.05%
Ranked in the US
#34
Ranked in the US
#11
Minnesota is the sixth state with the highest sales tax with a rate of 6.88%. Minnesota has a high sales tax rate to generate revenue for state programs, such as education, healthcare, and transportation.
Mississippi
Sales Tax Rate
7%
Ranked in the US
#48
Contribution of Sales Tax to State Revenue
13.43%
Ranked in the US
#17
Ranked in the US
#31
Mississippi is the fourth state with the highest sales tax with a rate of 7%. Mississippi has a high sales tax rate due to a lack of revenue from other sources, such as income tax, to fund the state's education and healthcare programs.
Missouri
Sales Tax Rate
4.23%
Ranked in the US
#12
Contribution of Sales Tax to State Revenue
13.58%
Ranked in the US
#16
Ranked in the US
#39
Montana
Montana is the state with the third-lowest sales tax rate in the US with a rate of 0%. The state does not have a state-level sales tax, and instead, relies on revenue from taxes on natural resources and tourism.
Nebraska
Sales Tax Rate
5.5%
Ranked in the US
#22
Contribution of Sales Tax to State Revenue
12.49%
Ranked in the US
#23
Ranked in the US
#15
Nevada
Sales Tax Rate
6.85%
Ranked in the US
#45
Contribution of Sales Tax to State Revenue
24.08%
Ranked in the US
#2
Ranked in the US
#35
Nevada is the seventh state with the highest sales tax with a rate of 6.85%. Nevada's high sales tax rate is due to the state's lack of other revenue sources, such as a state income tax, and is used to fund education and other public services.
New Hampshire
New Hampshire is the state with the fourth-lowest sales tax rate in the US with a rate of 0%. The state does not impose any state-level sales tax, and instead, relies on revenue from taxes on real estate and businesses.
New Jersey
Sales Tax Rate
6.63%
Ranked in the US
#44
Contribution of Sales Tax to State Revenue
9.97%
Ranked in the US
#35
Ranked in the US
#6
New Jersey is the eighth state with the highest sales tax with a rate of 6.63%. The state has a high sales tax rate due to a lack of other revenue sources, such as an income tax, to fund various state programs, including education and public safety.
New Mexico
Sales Tax Rate
5.13%
Ranked in the US
#19
Contribution of Sales Tax to State Revenue
16.22%
Ranked in the US
#11
Ranked in the US
#27
New York
Sales Tax Rate
4%
Ranked in the US
#10
Contribution of Sales Tax to State Revenue
10.12%
Ranked in the US
#33
Ranked in the US
#1
New York is the tenth state with the lowest sales tax with a rate of 4%. The state has a relatively low sales tax rate due to the presence of several sales tax exemptions and exclusions. For example, clothing and footwear items that cost less than $110 are exempt from sales tax. Additionally, New York has a cap on local sales tax rates, which helps to keep the overall sales tax rate low.
North Carolina
Sales Tax Rate
4.75%
Ranked in the US
#16
Contribution of Sales Tax to State Revenue
12.69%
Ranked in the US
#21
Ranked in the US
#29
North Dakota
Sales Tax Rate
5%
Ranked in the US
#17
Contribution of Sales Tax to State Revenue
11.84%
Ranked in the US
#25
Ranked in the US
#45
Ohio
Sales Tax Rate
5.75%
Ranked in the US
#24
Contribution of Sales Tax to State Revenue
13.38%
Ranked in the US
#18
Ranked in the US
#28
Oklahoma
Sales Tax Rate
4.5%
Ranked in the US
#14
Contribution of Sales Tax to State Revenue
15.92%
Ranked in the US
#12
Ranked in the US
#42
Oregon
Oregon is the state with the fifth-lowest sales tax rate in the US with a rate of 0%. The state does not have a state-level sales tax, and instead, relies on revenue from income taxes and corporate taxes.
Pennsylvania
Sales Tax Rate
6%
Ranked in the US
#32
Contribution of Sales Tax to State Revenue
9.24%
Ranked in the US
#40
Ranked in the US
#24
Rhode Island
Sales Tax Rate
7%
Ranked in the US
#49
Contribution of Sales Tax to State Revenue
9.2%
Ranked in the US
#41
Ranked in the US
#16
Rhode Island is the third state with the highest sales tax with a rate of 7%. Rhode Island has a high sales tax rate to generate revenue to fund state and local government operations.
South Carolina
Sales Tax Rate
6%
Ranked in the US
#33
Contribution of Sales Tax to State Revenue
9.57%
Ranked in the US
#39
Ranked in the US
#44
South Dakota
Sales Tax Rate
4.5%
Ranked in the US
#15
Contribution of Sales Tax to State Revenue
21.12%
Ranked in the US
#4
Ranked in the US
#48
Tennessee
Sales Tax Rate
7%
Ranked in the US
#50
Contribution of Sales Tax to State Revenue
19.55%
Ranked in the US
#6
Ranked in the US
#49
Tennessee is the second state with the highest sales tax with a rate of 7%. One factor contributing to Tennessee's high sales tax rate is its lack of a state income tax, leading the state to rely more heavily on sales tax revenue.
Texas
Sales Tax Rate
6.25%
Ranked in the US
#39
Contribution of Sales Tax to State Revenue
18.44%
Ranked in the US
#7
Ranked in the US
#47
Utah
Sales Tax Rate
6.1%
Ranked in the US
#36
Contribution of Sales Tax to State Revenue
12.1%
Ranked in the US
#24
Ranked in the US
#12
Vermont
Sales Tax Rate
6%
Ranked in the US
#34
Contribution of Sales Tax to State Revenue
5.59%
Ranked in the US
#46
Ranked in the US
#4
Virginia
Sales Tax Rate
5.3%
Ranked in the US
#20
Contribution of Sales Tax to State Revenue
8.28%
Ranked in the US
#43
Ranked in the US
#8
Washington
Sales Tax Rate
6.5%
Ranked in the US
#43
Contribution of Sales Tax to State Revenue
25.11%
Ranked in the US
#1
Ranked in the US
#23
Washington is the ninth state with the highest sales tax with a rate of 6.50%. The state's high sales tax rate is used to fund state and local government services, such as healthcare, education, and infrastructure.
West Virginia
Sales Tax Rate
6%
Ranked in the US
#35
Contribution of Sales Tax to State Revenue
8.92%
Ranked in the US
#42
Ranked in the US
#32
Wisconsin
Sales Tax Rate
5%
Ranked in the US
#18
Contribution of Sales Tax to State Revenue
11.2%
Ranked in the US
#28
Ranked in the US
#20
Wyoming
Sales Tax Rate
4%
Ranked in the US
#11
Contribution of Sales Tax to State Revenue
9.85%
Ranked in the US
#38
Ranked in the US
#50
FAQs
What state has the highest sales tax ?
California has the highest sales tax with a rate of 7.25%.
What state has the lowest sales tax ?
Alaska, Delaware, Montana, New Hampshire, and Oregon have the lowest sales tax tied at 0%.
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