Introduction
Unlike the federal government, which can only levy taxes allowed by the United States Constitution, states have greater discretion in levying taxes. States are given a greater ability to levy taxes for two reasons: 1) to remove power from the federal government and 2) as a means of raising revenue because states cannot levy tariffs on foreign goods.
One area where most states have levied taxes is the sale of goods. However, some states have chosen to not tax this great revenue driver – the average person paying about $1,000 in sales tax every year. In 2020, about $340 billion was levied by states on the sale of goods. While some states have chosen to not levy a sales tax, a small portion of those states allow counties and municipalities to levy a sales tax.
The definitions of retail sale and sales tax may differ according to the states. Practically all jurisdictions provide some various categories of goods and services that are exempt from sales tax or taxed but at reduced rates. For instance, the purchase of goods for further manufacture is often exempt.
Learn more about states without sales tax by scrolling through the charts.
| State | Sales Tax Status | Sales Tax Rate | Internet Sales Tax Status | State-Local Tax Burden |
|---|---|---|---|---|
| Alaska | No | 0% | Yes | 4.6% |
| Delaware | No | 0% | No | 12.4% |
| Montana | No | 0% | No | 10.5% |
| New Hampshire | No | 0% | No | 9.6% |
| Oregon | No | 0% | No | 10.8% |
| Alabama | Yes | 4% | Yes | 9.8% |
| Arizona | Yes | 5.6% | Yes | 9.5% |
| Arkansas | Yes | 6.5% | Yes | 10.2% |
| California | Yes | 7.25% | No | 13.5% |
| Colorado | Yes | 2.9% | Yes | 9.7% |
| Connecticut | Yes | 6.35% | Yes | 15.4% |
| Florida | Yes | 6% | No | 9.1% |
| Georgia | Yes | 4% | No | 8.9% |
| Hawaii | Yes | 4% | Yes | 14.1% |
| Idaho | Yes | 6% | Yes | 10.7% |
| Illinois | Yes | 6.25% | No | 12.9% |
| Indiana | Yes | 7% | Yes | 9.3% |
| Iowa | Yes | 6% | Yes | 11.2% |
| Kansas | Yes | 6.5% | No | 11.2% |
| Kentucky | Yes | 6% | Yes | 9.6% |
| Louisiana | Yes | 4.45% | Yes | 9.1% |
| Maine | Yes | 5.5% | Yes | 12.4% |
| Maryland | Yes | 6% | Yes | 11.3% |
| Massachusetts | Yes | 6.25% | No | 11.5% |
| Michigan | Yes | 6% | No | 8.6% |
| Minnesota | Yes | 6.88% | Yes | 12.1% |
| Mississippi | Yes | 7% | Yes | 9.8% |
| Missouri | Yes | 4.23% | No | 9.3% |
| Nebraska | Yes | 5.5% | Yes | 11.5% |
| Nevada | Yes | 6.85% | No | 9.6% |
| New Jersey | Yes | 6.63% | Yes | 13.2% |
| New Mexico | Yes | 5.13% | Yes | 10.2% |
| New York | Yes | 4% | No | 15.9% |
| North Carolina | Yes | 4.75% | Yes | 9.9% |
| North Dakota | Yes | 5% | No | 8.8% |
| Ohio | Yes | 5.75% | Yes | 10% |
| Oklahoma | Yes | 4.5% | No | 9% |
| Pennsylvania | Yes | 6% | Yes | 10.6% |
| Rhode Island | Yes | 7% | Yes | 11.4% |
| South Carolina | Yes | 6% | No | 8.9% |
| South Dakota | Yes | 4.5% | Yes | 8.4% |
| Tennessee | Yes | 7% | Yes | 7.6% |
| Texas | Yes | 6.25% | Yes | 8.6% |
| Utah | Yes | 6.1% | Yes | 12.1% |
| Vermont | Yes | 6% | Yes | 13.6% |
| Virginia | Yes | 5.3% | No | 12.5% |
| Washington | Yes | 6.5% | Yes | 10.7% |
| West Virginia | Yes | 6% | No | 9.8% |
| Wisconsin | Yes | 5% | Yes | 10.9% |
| Wyoming | Yes | 4% | Yes | 7.5% |
Sales Tax Status by State
Alabama
Sales Tax Status
Yes
Ranked in the US
#7
Ranked in the US
#20
Alaska
Sales Tax Status
No
Ranked in the US
#1
Ranked in the US
#1
Arizona
Sales Tax Status
Yes
5.6%
Ranked in the US
#23
Ranked in the US
#15
Arkansas
Sales Tax Status
Yes
6.5%
Ranked in the US
#41
Ranked in the US
#25
California
Sales Tax Status
Yes
7.25%
Ranked in the US
#51
Ranked in the US
#47
Colorado
Sales Tax Status
Yes
2.9%
Ranked in the US
#6
Ranked in the US
#19
Connecticut
Sales Tax Status
Yes
6.35%
Ranked in the US
#40
Ranked in the US
#50
Delaware
Sales Tax Status
No
Ranked in the US
#2
Ranked in the US
#42
Florida
Sales Tax Status
Yes
Ranked in the US
#26
Ranked in the US
#11
Georgia
Sales Tax Status
Yes
Ranked in the US
#8
Ranked in the US
#8
Hawaii
Sales Tax Status
Yes
Ranked in the US
#9
Ranked in the US
#49
Idaho
Sales Tax Status
Yes
Ranked in the US
#27
Ranked in the US
#29
Illinois
Sales Tax Status
Yes
6.25%
Ranked in the US
#37
Ranked in the US
#45
Indiana
Sales Tax Status
Yes
Ranked in the US
#47
Ranked in the US
#13
Iowa
Sales Tax Status
Yes
Ranked in the US
#28
Ranked in the US
#33
Kansas
Sales Tax Status
Yes
6.5%
Ranked in the US
#42
Ranked in the US
#34
Kentucky
Sales Tax Status
Yes
Ranked in the US
#29
Ranked in the US
#16
Louisiana
Sales Tax Status
Yes
4.45%
Ranked in the US
#13
Ranked in the US
#12
Maine
Sales Tax Status
Yes
5.5%
Ranked in the US
#21
Ranked in the US
#43
Maryland
Sales Tax Status
Yes
Ranked in the US
#30
Ranked in the US
#35
Massachusetts
Sales Tax Status
Yes
6.25%
Ranked in the US
#38
Ranked in the US
#37
Michigan
Sales Tax Status
Yes
Ranked in the US
#31
Ranked in the US
#5
Minnesota
Sales Tax Status
Yes
6.88%
Ranked in the US
#46
Ranked in the US
#40
Mississippi
Sales Tax Status
Yes
Ranked in the US
#48
Ranked in the US
#21
Missouri
Sales Tax Status
Yes
4.23%
Ranked in the US
#12
Ranked in the US
#14
Montana
Sales Tax Status
No
Ranked in the US
#3
Ranked in the US
#27
Nebraska
Sales Tax Status
Yes
5.5%
Ranked in the US
#22
Ranked in the US
#38
Nevada
Sales Tax Status
Yes
6.85%
Ranked in the US
#45
Ranked in the US
#17
New Hampshire
Sales Tax Status
No
Ranked in the US
#4
Ranked in the US
#18
New Jersey
Sales Tax Status
Yes
6.63%
Ranked in the US
#44
Ranked in the US
#46
New Mexico
Sales Tax Status
Yes
5.13%
Ranked in the US
#19
Ranked in the US
#26
New York
Sales Tax Status
Yes
Ranked in the US
#10
Ranked in the US
#51
North Carolina
Sales Tax Status
Yes
4.75%
Ranked in the US
#16
Ranked in the US
#23
North Dakota
Sales Tax Status
Yes
Ranked in the US
#17
Ranked in the US
#7
Ohio
Sales Tax Status
Yes
5.75%
Ranked in the US
#24
Ranked in the US
#24
Oklahoma
Sales Tax Status
Yes
4.5%
Ranked in the US
#14
Ranked in the US
#10
Oregon
Sales Tax Status
No
Ranked in the US
#5
Ranked in the US
#31
Pennsylvania
Sales Tax Status
Yes
Ranked in the US
#32
Ranked in the US
#28
Rhode Island
Sales Tax Status
Yes
Ranked in the US
#49
Ranked in the US
#36
South Carolina
Sales Tax Status
Yes
Ranked in the US
#33
Ranked in the US
#9
South Dakota
Sales Tax Status
Yes
4.5%
Ranked in the US
#15
Ranked in the US
#4
Tennessee
Sales Tax Status
Yes
Ranked in the US
#50
Ranked in the US
#3
Texas
Sales Tax Status
Yes
6.25%
Ranked in the US
#39
Ranked in the US
#6
Utah
Sales Tax Status
Yes
6.1%
Ranked in the US
#36
Ranked in the US
#41
Vermont
Sales Tax Status
Yes
Ranked in the US
#34
Ranked in the US
#48
Virginia
Sales Tax Status
Yes
5.3%
Ranked in the US
#20
Ranked in the US
#44
Washington
Sales Tax Status
Yes
6.5%
Ranked in the US
#43
Ranked in the US
#30
West Virginia
Sales Tax Status
Yes
Ranked in the US
#35
Ranked in the US
#22
Wisconsin
Sales Tax Status
Yes
Ranked in the US
#18
Ranked in the US
#32
Wyoming
Sales Tax Status
Yes
Ranked in the US
#11
Ranked in the US
#2