What state has the highest sales tax?

What state has the highest sales tax?

All but four states in the USA charge a statewide sales tax, and many also allow local governments to collect sales taxes in addition to the state tax rate.

The highest state-level sales tax rate in the USA is 7%

The highest state-level sales tax in the USA is 7%, which is charged by five states - Indiana, Tennessee, New Jersey, Mississippi, and Rhode Island. However, the state-level sales tax is only part of the story. When average local sales taxes are taken into account, you can find sales tax rates north of 7% in almost twenty states!

When ranked by state + average local sales taxes, we discover that Tennessee has the highest sales tax in the United States with an average rate of close to 10%, followed closely by Louisiana, Washington, and Arkansas.

While not technically a state, the territory of Puerto Rico has commonwealth and local sales taxes that add up to a whopping 11.5% - significantly higher than any of its mainland counterparts.

So why are the sales taxes in these states so high?

Tennessee and Arkansas both have no state income tax, while Arkansas and Louisiana have some of the lowest property taxes in the country. This means that these states, and their local governments, all have to depend on higher sales taxes to replace tax revenue not being brought in by income and property taxes.

This table ranks the states by average state + local sales taxes by default. Click the arrows in the column headers to change the sort order or column. You can view a list of the highest city sales taxes in the United States here.


Sales Tax Rates Database: Need an updated list of local sales tax rates for your business? Download our sales tax database!

Rank State Name State Sales Tax Average State + Local Sales Tax
1 Puerto Rico 10.500% 10.754% View rates
2 Louisiana 5.000% 9.621% View rates
3 Tennessee 7.000% 9.488% View rates
4 Washington 6.500% 8.496% View rates
5 Arkansas 6.500% 8.469% View rates
6 California 6.250% 8.300% View rates
7 New York 4.000% 8.202% View rates
8 Kansas 6.500% 7.981% View rates
9 Alabama 4.000% 7.791% View rates
10 Nevada 4.600% 7.773% View rates
11 Oklahoma 4.500% 7.763% View rates
12 Arizona 5.600% 7.703% View rates
13 Texas 6.250% 7.566% View rates
14 Illinois 6.250% 7.549% View rates
15 South Carolina 6.000% 7.254% View rates
16 Georgia 4.000% 7.141% View rates
17 Minnesota 6.875% 7.127% View rates
18 Ohio 5.750% 7.093% View rates
19 Mississippi 7.000% 7.052% View rates
20 New Mexico 5.125% 7.032% View rates
21 Indiana 7.000% 7.000% View rates
22 New Jersey 7.000% 7.000% View rates
23 Rhode Island 7.000% 7.000% View rates
24 Iowa 6.000% 6.901% View rates
25 North Carolina 4.750% 6.878% View rates
26 Missouri 4.225% 6.760% View rates
27 Florida 6.000% 6.697% View rates
28 Utah 4.700% 6.529% View rates
29 Connecticut 6.350% 6.350% View rates
30 Massachusetts 6.250% 6.250% View rates
31 Pennsylvania 6.000% 6.121% View rates
32 West Virginia 6.000% 6.115% View rates
33 Vermont 6.000% 6.078% View rates
34 Idaho 6.000% 6.037% View rates
35 Kentucky 6.000% 6.000% View rates
36 Maryland 6.000% 6.000% View rates
37 Michigan 6.000% 6.000% View rates
38 Colorado 2.900% 5.997% View rates
39 Nebraska 5.500% 5.943% View rates
40 District of Columbia 5.750% 5.750% View rates
41 North Dakota 5.000% 5.583% View rates
42 Maine 5.500% 5.500% View rates
43 Virginia 4.300% 5.477% View rates
44 Wyoming 4.000% 5.436% View rates
45 Wisconsin 5.000% 5.431% View rates
46 South Dakota 4.500% 5.431% View rates
47 Hawaii 4.000% 4.248% View rates
48 Alaska 0.000% 1.604% View rates
49 Oregon 0.000% 0.000%
50 Montana 0.000% 0.000%
51 Delaware 0.000% 0.000%
52 New Hampshire 0.000% 0.000%
** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/highest-salestax-states