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Sales Tax by State 2023
Most states have a sales tax ranging between 4% and 7%. The average sales tax for a state is 5.1%. There are thirty-two states that fall above this average, and eighteen states that fall below this average, suggesting that the few states with a sales tax of 0% bring down the average.
There is only one state with a sales tax of over 7%, which is California which is also the state with the largest population. There are six states with sales tax under 4%. Colorado has a sales tax of 2.9%. The other five— Oregon, New Hampshire, Montana, Delaware, and Alaska— have state sales taxes of 0%.
The average local sales taxes range from -.03% to 5.14%. The average “average local sales tax” is 1.46%. There are 18 states whose average local tax is above this average and 32 states that are below it. This is the inverse of how the state sales tax is distributed.
There is only two states with an average local sales tax above 5%. Alabama has an average local sales tax of 5.25% and Louisiana has an average local tax of 5.1%. New Jersey is the only state with a negative average local sales tax (-.03%). Twelve other states (24% of all states) and the District of Columbia have an average local sales tax of 0%. These states are Delaware, Montana, New Hampshire, Oregon, Maine, Kentucky, Maryland, Michigan, Massachusetts, Connecticut, Rhode Island, and Indiana. There seems to be no correlation between state tax and average local tax.
There are five states that have an average local tax higher than their state tax-- Alabama, Louisiana, Colorado, New York, and Alaska. While Alaska has no state sales tax, the average local sales tax is 1.76%.
The combined sales taxes for state and average local range from 0% to 9.55%. The average combined sales tax is 6.44%. Thirty-one states fall above this average and nineteen fall below. This is about the same distribution as the state sales tax. Four states—Oregon, New Hampshire, Montana, and Delaware—have a combined sales tax of 0%. On the other end of the spectrum, Louisiana and Tennessee both have the highest combined sales tax rate of 9.55%.
Here are the 10 states with the highest sales tax rates:
- California: 7.25%
- Indiana: 7%
- Mississippi: 7%
- Rhode Island: 7%
- Tennessee: 7%
- Minnesota: 6.87%
- Nevada: 6.85%
- New Jersey: 6.62%
- Arkansas: 6.5%
- Kansas: 6.5%
State | Sales Tax Rate | Avg Local Tax Rate | Combined Rate |
|---|---|---|---|
| California | 7.25% | 1.57% | 8.82% |
| Indiana | 7% | 7% | |
| Mississippi | 7% | 0.07% | 7.07% |
| Rhode Island | 7% | 7% | |
| Tennessee | 7% | 2.55% | 9.55% |
| Minnesota | 6.87% | 0.61% | 7.48% |
| Nevada | 6.85% | 1.38% | 8.23% |
| New Jersey | 6.62% | -0.03% | 6.59% |
| Arkansas | 6.5% | 2.96% | 9.46% |
| Kansas | 6.5% | 2.16% | 8.66% |
| Washington | 6.5% | 2.36% | 8.86% |
| Connecticut | 6.35% | 6.35% | |
| Illinois | 6.25% | 2.57% | 8.82% |
| Massachusetts | 6.25% | 6.25% | |
| Texas | 6.25% | 1.95% | 8.2% |
| Utah | 6.1% | 1.09% | 7.19% |
| District of Columbia | 6% | 6% | |
| Florida | 6% | 1.02% | 7.02% |
| Idaho | 6% | 0.02% | 6.02% |
| Iowa | 6% | 0.94% | 6.94% |
| Kentucky | 6% | 6% | |
| Maryland | 6% | 6% | |
| Michigan | 6% | 6% | |
| Pennsylvania | 6% | 0.34% | 6.34% |
| South Carolina | 6% | 1.43% | 7.43% |
| Vermont | 6% | 0.3% | 6.3% |
| West Virginia | 6% | 0.55% | 6.55% |
| Ohio | 5.75% | 1.49% | 7.24% |
| Arizona | 5.6% | 2.77% | 8.37% |
| Maine | 5.5% | 5.5% | |
| Nebraska | 5.5% | 1.45% | 6.95% |
| Virginia | 5.3% | 0.45% | 5.75% |
| New Mexico | 5% | 2.72% | 7.72% |
| North Dakota | 5% | 1.97% | 6.97% |
| Wisconsin | 5% | 0.43% | 5.43% |
| North Carolina | 4.75% | 2.24% | 6.99% |
| Oklahoma | 4.5% | 4.48% | 8.98% |
| South Dakota | 4.5% | 1.9% | 6.4% |
| Louisiana | 4.45% | 5.1% | 9.55% |
| Missouri | 4.22% | 4.11% | 8.33% |
| Alabama | 4% | 5.25% | 9.25% |
| Georgia | 4% | 3.4% | 7.4% |
| Hawaii | 4% | 0.44% | 4.44% |
| New York | 4% | 4.52% | 8.52% |
| Wyoming | 4% | 1.36% | 5.36% |
| Colorado | 2.9% | 4.88% | 7.78% |