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.
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.