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 10.5% 11.5% View rates
2 Tennessee 7% 9.614% View rates
3 Louisiana 4.45% 9.528% View rates
4 Arkansas 6.5% 9.127% View rates
5 Alabama 4% 9.085% View rates
6 Washington 6.5% 8.873% View rates
7 Oklahoma 4.5% 8.764% View rates
8 California 6% 8.613% View rates
9 Kansas 6.5% 8.487% View rates
10 New York 4% 8.254% View rates
11 Illinois 6.25% 8.158% View rates
12 Arizona 5.6% 8.009% View rates
13 Nevada 4.6% 7.966% View rates
14 Texas 6.25% 7.934% View rates
15 Missouri 4.225% 7.904% View rates
16 Georgia 4% 7.691% View rates
17 South Carolina 6% 7.662% View rates
18 Minnesota 6.875% 7.396% View rates
19 New Mexico 5% 7.283% View rates
20 Ohio 5.75% 7.254% View rates
21 Mississippi 7% 7.065% View rates
22 Florida 6% 7.036% View rates
23 Indiana 7% 7% View rates
24 Rhode Island 7% 7% View rates
25 Colorado 2.9% 6.991% View rates
26 Iowa 6% 6.988% View rates
27 North Carolina 4.75% 6.97% View rates
28 Utah 4.85% 6.964% View rates
29 New Jersey 6.625% 6.628% View rates
30 Connecticut 6.35% 6.35% View rates
31 Nebraska 5.5% 6.325% View rates
32 South Dakota 4.5% 6.317% View rates
33 West Virginia 6% 6.254% View rates
34 Massachusetts 6.25% 6.25% View rates
35 Pennsylvania 6% 6.166% View rates
36 Vermont 6% 6.153% View rates
37 Idaho 6% 6.074% View rates
38 Kentucky 6% 6.008% View rates
39 Maryland 6% 6% View rates
40 Michigan 6% 6% View rates
41 District of Columbia 6% 6% View rates
42 North Dakota 5% 5.96% View rates
43 Virginia 4.3% 5.627% View rates
44 Maine 5.5% 5.5% View rates
45 Wisconsin 5% 5.481% View rates
46 Wyoming 4% 5.436% View rates
47 Hawaii 4% 4.431% View rates
48 Alaska 0% 1.868% View rates
49 Montana 0% 0.002% View rates
50 Oregon 0% 0%
51 Delaware 0% 0%
52 New Hampshire 0% 0%
** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/highest-salestax-states