Sales tax varies dramatically across the US—from 0% in five states to over 9.5% in others. Local taxes can add another 1-5% on top of the state rate. Here’s the complete breakdown.
Table of Contents
Sales Tax Rates by State (2026)
State
State Rate
Avg. Local Rate
Combined Rate
Rank
Alabama
4.00%
5.28%
9.28%
4
Alaska
0.00%
1.76%
1.76%
46
Arizona
5.60%
2.80%
8.40%
11
Arkansas
6.50%
2.97%
9.47%
3
California
7.25%
1.60%
8.85%
8
Colorado
2.90%
4.89%
7.79%
16
Connecticut
6.35%
0.00%
6.35%
33
Delaware
0.00%
0.00%
0.00%
47
Florida
6.00%
1.01%
7.01%
22
Georgia
4.00%
3.38%
7.38%
18
Hawaii
4.00%
0.50%
4.50%
42
Idaho
6.00%
0.02%
6.02%
36
Illinois
6.25%
2.57%
8.82%
9
Indiana
7.00%
0.00%
7.00%
23
Iowa
6.00%
0.94%
6.94%
24
Kansas
6.50%
2.20%
8.70%
10
Kentucky
6.00%
0.00%
6.00%
37
Louisiana
4.45%
5.11%
9.56%
1
Maine
5.50%
0.00%
5.50%
39
Maryland
6.00%
0.00%
6.00%
37
Massachusetts
6.25%
0.00%
6.25%
35
Michigan
6.00%
0.00%
6.00%
37
Minnesota
6.875%
0.62%
7.49%
17
Mississippi
7.00%
0.07%
7.07%
21
Missouri
4.225%
4.03%
8.26%
13
Montana
0.00%
0.00%
0.00%
47
Nebraska
5.50%
1.44%
6.94%
24
Nevada
6.85%
1.38%
8.23%
14
New Hampshire
0.00%
0.00%
0.00%
47
New Jersey
6.625%
-0.03%
6.60%
31
New Mexico
5.125%
2.72%
7.84%
15
New York
4.00%
4.52%
8.52%
10
North Carolina
4.75%
2.23%
6.98%
23
North Dakota
5.00%
2.04%
7.04%
22
Ohio
5.75%
1.49%
7.24%
19
Oklahoma
4.50%
4.49%
8.99%
6
Oregon
0.00%
0.00%
0.00%
47
Pennsylvania
6.00%
0.34%
6.34%
34
Rhode Island
7.00%
0.00%
7.00%
23
South Carolina
6.00%
1.44%
7.44%
17
South Dakota
4.20%
1.90%
6.10%
36
Tennessee
7.00%
2.55%
9.55%
2
Texas
6.25%
1.95%
8.20%
14
Utah
6.10%
1.09%
7.19%
20
Vermont
6.00%
0.38%
6.38%
32
Virginia
5.30%
0.46%
5.76%
38
Washington
6.50%
2.73%
9.23%
5
West Virginia
6.00%
0.56%
6.56%
32
Wisconsin
5.00%
0.43%
5.43%
40
Wyoming
4.00%
1.44%
5.44%
39
Washington, D.C.
6.00%
0.00%
6.00%
37
States With No Sales Tax
State
Notes
Alaska
No state tax, but local jurisdictions can impose sales tax (avg. 1.76%)
Delaware
No sales tax at any level
Montana
No sales tax at any level (some resort taxes apply)
New Hampshire
No sales tax at any level
Oregon
No sales tax at any level
Top 10 Highest Combined Sales Tax States
Rank
State
Combined Rate
1
Louisiana
9.56%
2
Tennessee
9.55%
3
Arkansas
9.47%
4
Alabama
9.28%
5
Washington
9.23%
6
Oklahoma
8.99%
7
California
8.85%
8
Illinois
8.82%
9
Kansas
8.70%
10
New York
8.52%
Impact of Sales Tax on Annual Spending
Average American household spending subject to sales tax: ~$30,000/year.
Combined Sales Tax Rate
Annual Sales Tax Paid
Monthly Impact
0% (no sales tax states)
$0
$0
5%
$1,500
$125
7%
$2,100
$175
8.5%
$2,550
$213
9.5%
$2,850
$238
Living in a high sales tax state vs. no sales tax state costs about $2,850/year for average spending.
Common Sales Tax Exemptions
Item
Exempt in Most States?
Groceries (unprepared food)
Yes (but not all states—13 tax groceries)
Prescription medications
Yes
Clothing
Varies (exempt in PA, NJ, NY under $110, MN, etc.)
Prepared food/restaurant meals
Taxed in all states with sales tax
Digital goods/streaming
Increasingly taxed in most states
Vehicles
Taxed in all states with sales tax
The Bottom Line
Sales tax can cost the average household $1,500-$2,850 per year depending on where you live. Five states have no sales tax at all, while Louisiana, Tennessee, and Arkansas have combined rates approaching 9.5%. When comparing cost of living across states, don’t forget to factor in sales tax alongside income tax and property tax—states with no income tax often have higher sales and property taxes to compensate.
