On or before April 15, millions of Americans will file their taxes.
Though the focus this time of year tends to be on income taxes, Americans also pay thousands of dollars each year in state and local sales taxes.
Sales tax rates and sales tax bases, which vary considerably between states, change how much tax revenue state and local governments collect. Generally, the states with the best economies have more affluent populations, and collect more taxes per capita as a result.
Americans pay between 0% and 11.6% of the price of the goods they buy in sales taxes — depending on state of purchase. Five states levy no sales tax whatsoever. On average, across all states, state and local general sales tax collections come to $1,145 per capita, compared to $1,518 in state and local property taxes per capita and $1,144 in state and local individual income taxes.
Many believe sales taxes do more harm than good because, unlike property taxes, income taxes, or corporate taxes, they are not taxed on a scale but as a flat percentage. This system is referred to as a regressive tax because its burden is higher on lower-income taxpayers.
Some tax policy experts, on the other hand, favor sales tax for its transparency. Regarding graduated income tax rates as complex and confusing to many taxpayers, sales tax proponents argue that sales taxes are easier to understand.
Click here to see the states with the highest and lowest sales taxes.
Methodology
To determine the states with the highest and lowest sales taxes, 24/7 Wall St. reviewed sales tax rates from the Tax Foundation’s State and Local Sales Tax Rates in 2019 report.
The report used a population-weighted average of local sales taxes as of Jan. 1, 2019 to compare the average local rate of each state.
Combined sales tax figures include statewide sales tax rates as well as the average local sales tax rates for residents as of Jan. 1, 2019. Regional price parity data comes from the Bureau of Economic Analysis and is for 2016. Personal income per capita is also from the BEA and is for the third quarter of 2018. In New Jersey, the average local tax is -0.03% because businesses in Salem County are exempt from collecting state sales taxes.
Source: SeanPavonePhoto / Getty Images
1. Tennessee
> Combined sales tax rate: 9.5%
> State sales tax rate: 7.0%
> Avg. local sales tax: 2.5%
> Cost of living: 9.8% less than the national average (11th lowest)
> Personal income per capita: $47,134 (17th lowest)
See all stories featuring: Tennessee
[in-text-ad]
Source: f11photo / Getty Images
2. Louisiana
> Combined sales tax rate: 9.5%
> State sales tax rate: 4.5%
> Avg. local sales tax: 5.0%
> Cost of living: 9.6% less than the national average (14th lowest)
> Personal income per capita: $45,449 (10th lowest)
See all stories featuring: Louisiana
Source: Davel5957 / Getty Images
3. Arkansas
> Combined sales tax rate: 9.4%
> State sales tax rate: 6.5%
> Avg. local sales tax: 2.9%
> Cost of living: 13.1% less than the national average (3rd lowest)
> Personal income per capita: $42,373 (5th lowest)
See all stories featuring: Arkansas
Source: digidreamgrafix / Getty Images
4. Washington
> Combined sales tax rate: 9.2%
> State sales tax rate: 6.5%
> Avg. local sales tax: 2.7%
> Cost of living: 5.5% greater than the national average (9th highest)
> Personal income per capita: $61,085 (8th highest)
See all stories featuring: Washington
[in-text-ad-2]
Source: Sean Pavone / Getty Images
5. Alabama
> Combined sales tax rate: 9.1%
> State sales tax rate: 4.0%
> Avg. local sales tax: 5.1%
> Cost of living: 13.4% less than the national average (2nd lowest)
> Personal income per capita: $42,380 (6th lowest)
See all stories featuring: Alabama
Source: Majestic_Aerials / Getty Images
6. Oklahoma
> Combined sales tax rate: 8.9%
> State sales tax rate: 4.5%
> Avg. local sales tax: 4.4%
> Cost of living: 11.0% less than the national average (7th lowest)
> Personal income per capita: $46,178 (14th lowest)
See all stories featuring: Oklahoma
[in-text-ad]
Source: lhongfoto / Getty Images
7. Illinois
> Combined sales tax rate: 8.7%
> State sales tax rate: 6.3%
> Avg. local sales tax: 2.5%
> Cost of living: 1.1% less than the national average (18th highest)
> Personal income per capita: $56,850 (13th highest)
See all stories featuring: Illinois
Source: ricardoreitmeyer / Getty Images
8. Kansas
> Combined sales tax rate: 8.7%
> State sales tax rate: 6.5%
> Avg. local sales tax: 2.2%
> Cost of living: 9.5% less than the national average (16th lowest)
> Personal income per capita: $50,121 (23rd highest)
See all stories featuring: Kansas
Source: choness / Getty Images
9. California
> Combined sales tax rate: 8.6%
> State sales tax rate: 7.3%
> Avg. local sales tax: 1.3%
> Cost of living: 14.4% greater than the national average (3rd highest)
> Personal income per capita: $62,572 (6th highest)
See all stories featuring: California
[in-text-ad-2]
Source: Terabass / Wikimedia Commons
10. New York
> Combined sales tax rate: 8.5%
> State sales tax rate: 4.0%
> Avg. local sales tax: 4.5%
> Cost of living: 15.6% greater than the national average (2nd highest)
> Personal income per capita: $67,859 (3rd highest)
See all stories featuring: New York
Source: dszc / Getty Images
11. Arizona
> Combined sales tax rate: 8.4%
> State sales tax rate: 5.6%
> Avg. local sales tax: 2.8%
> Cost of living: 4.1% less than the national average (25th lowest)
> Personal income per capita: $43,847 (9th lowest)
See all stories featuring: Arizona
[in-text-ad]
Source: Sean Pavone / Getty Images
12. Texas
> Combined sales tax rate: 8.2%
> State sales tax rate: 6.3%
> Avg. local sales tax: 1.9%
> Cost of living: 3.1% less than the national average (24th highest)
> Personal income per capita: $49,245 (24th lowest)
See all stories featuring: Texas
Source: f11photo / Getty Images
13. Nevada
> Combined sales tax rate: 8.1%
> State sales tax rate: 6.9%
> Avg. local sales tax: 1.3%
> Cost of living: 2.6% less than the national average (22nd highest)
> Personal income per capita: $48,006 (20th lowest)
See all stories featuring: Nevada
Source: f11photo / Getty Images
14. Missouri
> Combined sales tax rate: 8.1%
> State sales tax rate: 4.2%
> Avg. local sales tax: 3.9%
> Cost of living: 10.5% less than the national average (9th lowest)
> Personal income per capita: $46,703 (16th lowest)
See all stories featuring: Missouri
[in-text-ad-2]
Source: DenisTangneyJr / Getty Images
15. New Mexico
> Combined sales tax rate: 7.8%
> State sales tax rate: 5.1%
> Avg. local sales tax: 2.7%
> Cost of living: 6.4% less than the national average (23rd lowest)
> Personal income per capita: $41,313 (3rd lowest)
See all stories featuring: New Mexico
Source: f11photo / Getty Images
16. Colorado
> Combined sales tax rate: 7.6%
> State sales tax rate: 2.9%
> Avg. local sales tax: 4.7%
> Cost of living: 3.0% greater than the national average (11th highest)
> Personal income per capita: $57,079 (11th highest)
See all stories featuring: Colorado
[in-text-ad]
Source: RudyBalasko / Getty Images
17. Minnesota
> Combined sales tax rate: 7.4%
> State sales tax rate: 6.9%
> Avg. local sales tax: 0.6%
> Cost of living: 2.5% less than the national average (21st highest)
> Personal income per capita: $56,280 (14th highest)
See all stories featuring: Minnesota
24/7 Wall St.
Source: SeanPavonePhoto / Getty Images
18. South Carolina
> Combined sales tax rate: 7.4%
> State sales tax rate: 6.0%
> Avg. local sales tax: 1.4%
> Cost of living: 9.7% less than the national average (13th lowest)
> Personal income per capita: $42,726 (7th lowest)
See all stories featuring: South Carolina
Source: Sean Pavone / Getty Images
19. Georgia
> Combined sales tax rate: 7.3%
> State sales tax rate: 4.0%
> Avg. local sales tax: 3.3%
> Cost of living: 7.9% less than the national average (19th lowest)
> Personal income per capita: $45,624 (12th lowest)
See all stories featuring: Georgia
[in-text-ad-2]
Source: Sean Pavone / Getty Images
20. Ohio
> Combined sales tax rate: 7.2%
> State sales tax rate: 5.8%
> Avg. local sales tax: 1.4%
> Cost of living: 10.7% less than the national average (8th lowest)
> Personal income per capita: $48,230 (22nd lowest)
See all stories featuring: Ohio
Source: SeanPavonePhoto / Getty Images
21. Mississippi
> Combined sales tax rate: 7.1%
> State sales tax rate: 7.0%
> Avg. local sales tax: 0.1%
> Cost of living: 13.6% less than the national average (the lowest)
> Personal income per capita: $37,990 (the lowest)
See all stories featuring: Mississippi
[in-text-ad]
Source: Sean Pavone / Getty Images
22. Florida
> Combined sales tax rate: 7.1%
> State sales tax rate: 6.0%
> Avg. local sales tax: 1.1%
> Cost of living: 0.3% less than the national average (16th highest)
> Personal income per capita: $49,258 (25th lowest)
See all stories featuring: Florida
24/7 Wall St.
Source: SeanPavonePhoto / Getty Images
23. Rhode Island
> Combined sales tax rate: 7.0%
> State sales tax rate: 7.0%
> Avg. local sales tax: 0.0%
> Cost of living: 0.4% less than the national average (17th highest)
> Personal income per capita: $54,736 (16th highest)
See all stories featuring: Rhode Island
Source: f11photo / Getty Images
24. Indiana
> Combined sales tax rate: 7.0%
> State sales tax rate: 7.0%
> Avg. local sales tax: 0.0%
> Cost of living: 9.7% less than the national average (13th lowest)
> Personal income per capita: $46,589 (15th lowest)
See all stories featuring: Indiana
[in-text-ad-2]
Source: Sean Pavone / Getty Images
25. North Carolina
> Combined sales tax rate: 7.0%
> State sales tax rate: 4.8%
> Avg. local sales tax: 2.2%
> Cost of living: 9.1% less than the national average (17th lowest)
> Personal income per capita: $45,909 (13th lowest)
See all stories featuring: North Carolina
Source: johnnya123 / Getty Images
26. Utah
> Combined sales tax rate: 6.9%
> State sales tax rate: 6.0%
> Avg. local sales tax: 1.0%
> Cost of living: 2.7% less than the national average (23rd highest)
> Personal income per capita: $45,457 (11th lowest)
See all stories featuring: Utah
[in-text-ad]
Source: DenisTangneyJr / Getty Images
27. North Dakota
> Combined sales tax rate: 6.9%
> State sales tax rate: 5.0%
> Avg. local sales tax: 1.8%
> Cost of living: 8.5% less than the national average (18th lowest)
> Personal income per capita: $54,735 (17th highest)
See all stories featuring: North Dakota
24/7 Wall St.
Source: ChrisBoswell / Getty Images
28. Nebraska
> Combined sales tax rate: 6.9%
> State sales tax rate: 5.5%
> Avg. local sales tax: 1.4%
> Cost of living: 9.5% less than the national average (16th lowest)
> Personal income per capita: $52,000 (20th highest)
See all stories featuring: Nebraska
Source: Ron_Thomas / Getty Images
29. Iowa
> Combined sales tax rate: 6.8%
> State sales tax rate: 6.0%
> Avg. local sales tax: 0.8%
> Cost of living: 9.8% less than the national average (11th lowest)
> Personal income per capita: $48,743 (23rd lowest)
See all stories featuring: Iowa
[in-text-ad-2]
Source: SeanPavonePhoto / Getty Images
30. New Jersey
> Combined sales tax rate: 6.6%
> State sales tax rate: 6.6%
> Avg. local sales tax: 0.0%
> Cost of living: 13.2% greater than the national average (4th highest)
> Personal income per capita: $66,956 (4th highest)
See all stories featuring: New Jersey
Source: EunikaSopotnicka / Getty Images
31. South Dakota
> Combined sales tax rate: 6.4%
> State sales tax rate: 4.5%
> Avg. local sales tax: 1.9%
> Cost of living: 11.7% less than the national average (6th lowest)
> Personal income per capita: $49,980 (24th highest)
See all stories featuring: South Dakota
[in-text-ad]
Source: Sean Pavone / Getty Images
32. West Virginia
> Combined sales tax rate: 6.4%
> State sales tax rate: 6.0%
> Avg. local sales tax: 0.4%
> Cost of living: 12.4% less than the national average (4th lowest)
> Personal income per capita: $40,389 (2nd lowest)
See all stories featuring: West Virginia
Source: SeanPavonePhoto / Getty Images
33. Connecticut
> Combined sales tax rate: 6.4%
> State sales tax rate: 6.4%
> Avg. local sales tax: 0.0%
> Cost of living: 8.7% greater than the national average (6th highest)
> Personal income per capita: $74,076 (the highest)
See all stories featuring: Connecticut
Source: f11photo / Getty Images
34. Pennsylvania
> Combined sales tax rate: 6.3%
> State sales tax rate: 6.0%
> Avg. local sales tax: 0.3%
> Cost of living: 1.6% less than the national average (19th highest)
> Personal income per capita: $55,412 (15th highest)
See all stories featuring: Pennsylvania
[in-text-ad-2]
Source: Sean Pavone / Getty Images
35. Massachusetts
> Combined sales tax rate: 6.3%
> State sales tax rate: 6.3%
> Avg. local sales tax: 0.0%
> Cost of living: 7.8% greater than the national average (7th highest)
> Personal income per capita: $70,410 (2nd highest)
See all stories featuring: Massachusetts
Source: Sean Pavone / Getty Images
36. Vermont
> Combined sales tax rate: 6.2%
> State sales tax rate: 6.0%
> Avg. local sales tax: 0.2%
> Cost of living: 1.6% greater than the national average (13th highest)
> Personal income per capita: $54,110 (19th highest)
See all stories featuring: Vermont
[in-text-ad]
Source: vkbhat / Getty Images
37. Idaho
> Combined sales tax rate: 6.0%
> State sales tax rate: 6.0%
> Avg. local sales tax: 0.0%
> Cost of living: 7.0% less than the national average (21st lowest)
> Personal income per capita: $43,155 (8th lowest)
See all stories featuring: Idaho
24/7 Wall St.
Source: Sean Pavone / Getty Images
38. Maryland
> Combined sales tax rate: 6.0%
> State sales tax rate: 6.0%
> Avg. local sales tax: 0.0%
> Cost of living: 9.5% greater than the national average (5th highest)
> Personal income per capita: $62,860 (5th highest)
See all stories featuring: Maryland
Source: pawel.gaul / Getty Images
39. Michigan
> Combined sales tax rate: 6.0%
> State sales tax rate: 6.0%
> Avg. local sales tax: 0.0%
> Cost of living: 6.7% less than the national average (22nd lowest)
> Personal income per capita: $47,810 (19th lowest)
See all stories featuring: Michigan
[in-text-ad-2]
Source: Sean Pavone / Getty Images
40. Kentucky
> Combined sales tax rate: 6.0%
> State sales tax rate: 6.0%
> Avg. local sales tax: 0.0%
> Cost of living: 12.2% less than the national average (5th lowest)
> Personal income per capita: $41,889 (4th lowest)
See all stories featuring: Kentucky
Source: SeanPavonePhoto / Getty Images
41. Virginia
> Combined sales tax rate: 5.7%
> State sales tax rate: 5.3%
> Avg. local sales tax: 0.4%
> Cost of living: 2.3% greater than the national average (12th highest)
> Personal income per capita: $56,950 (12th highest)
See all stories featuring: Virginia
[in-text-ad]
Source: SeanPavonePhoto / Getty Images
42. Maine
> Combined sales tax rate: 5.5%
> State sales tax rate: 5.5%
> Avg. local sales tax: 0.0%
> Cost of living: 1.6% less than the national average (19th highest)
> Personal income per capita: $48,198 (21st lowest)
See all stories featuring: Maine
24/7 Wall St.
Source: Ron_Thomas / Getty Images
43. Wisconsin
> Combined sales tax rate: 5.4%
> State sales tax rate: 5.0%
> Avg. local sales tax: 0.4%
> Cost of living: 7.2% less than the national average (20th lowest)
> Personal income per capita: $50,753 (22nd highest)
See all stories featuring: Wisconsin
Source: collins_family / Flickr
44. Wyoming
> Combined sales tax rate: 5.4%
> State sales tax rate: 4.0%
> Avg. local sales tax: 1.4%
> Cost of living: 3.3% less than the national average (25th highest)
> Personal income per capita: $60,553 (9th highest)
See all stories featuring: Wyoming
[in-text-ad-2]
Source: Eric Tessmer / Wikimedia Commons
45. Hawaii
> Combined sales tax rate: 4.4%
> State sales tax rate: 4.0%
> Avg. local sales tax: 0.4%
> Cost of living: 18.4% greater than the national average (the highest)
> Personal income per capita: $54,411 (18th highest)
See all stories featuring: Hawaii
Source: Chilkoot / Getty Images
46. Alaska
> Combined sales tax rate: 1.4%
> State sales tax rate: 0.0%
> Avg. local sales tax: 1.4%
> Cost of living: 5.4% greater than the national average (10th highest)
> Personal income per capita: $59,647 (10th highest)
See all stories featuring: Alaska
[in-text-ad]
Source: DenisTangneyJr / Getty Images
47. New Hampshire
> Combined sales tax rate: 0.0%
> State sales tax rate: 0.0%
> Avg. local sales tax: 0.0%
> Cost of living: 5.9% greater than the national average (8th highest)
> Personal income per capita: $61,856 (7th highest)
See all stories featuring: New Hampshire
24/7 Wall St.
Source: DenisTangneyJr / Getty Images
48. Delaware
> Combined sales tax rate: 0.0%
> State sales tax rate: 0.0%
> Avg. local sales tax: 0.0%
> Cost of living: 0.2% greater than the national average (14th highest)
> Personal income per capita: $51,069 (21st highest)
See all stories featuring: Delaware
Source: 4nadia / Getty Images
49. Oregon
> Combined sales tax rate: 0.0%
> State sales tax rate: 0.0%
> Avg. local sales tax: 0.0%
> Cost of living: 0.2% less than the national average (15th highest)
> Personal income per capita: $49,948 (25th highest)
See all stories featuring: Oregon
[in-text-ad-2]
Source: TheBigMK / Getty Images
50. Montana
> Combined sales tax rate: 0.0%
> State sales tax rate: 0.0%
> Avg. local sales tax: 0.0%
> Cost of living: 5.9% less than the national average (24th lowest)
> Personal income per capita: $47,196 (18th lowest)
See all stories featuring: Montana
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
