In addition to income and property taxes, Americans also pay state and local sales taxes. Sales taxes account for a large share of the levies that Americans pay each year.
To determine the states with the highest and lowest sales tax rates, 24/7 Wall St. reviewed data on sales tax rates from the Tax Foundation. States were ranked based on the combined state and local tax rates as of Jan. 1, 2022. Local tax rate is the average of all local sales tax rates within a state. All other data is from the Tax Foundation and is for fiscal 2019.
Unlike income and corporate incomes, which are taxed on a sliding scale, sales are taxed at a flat rate. Sales taxes are therefore considered a regressive levy that places a higher burden on lower-income people. Critics of sales taxes say lower-income people pay a higher share of their earnings for necessities than higher-income people. Proponents of the sales tax say it is a consumption levy that is fair and simple. (And these are the states with the highest and lowest property taxes.)
In some states, Americans pay up to 9.5% in combined state and average local sales tax. Four out of five states with the highest combined state and average local sales tax rates — 9.2% and above — are in the South: Alabama, Arkansas, Tennessee, and Louisiana. The fifth state, Washington, is one of eight states that does not have a state income tax.
Hawaii has the highest state and local general sales tax collection at $2,888 per capita.
California has the highest state sales tax rate at 7.3%, and Alabama has the highest average local sales tax rate at 5.2%.
Five states have 0% state sales tax rate: Alaska, Delaware, Montana, New Hampshire, and Oregon. Four of the five — Delaware, Montana, New Hampshire, and Oregon — also have no local sales taxes and therefore were excluded from the analysis. Alaska was included because it allows localities to charge local sales taxes. (These are the states with the largest average tax refund.)
Click here to see the states with the highest sales tax.
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46. Alaska
> Combined state and avg. local sales tax rate: 1.8%
> State sales tax rate: 0.0% (tied — the lowest)
> Avg. local sales tax rate: 1.8% (19th highest)
> State and local general sales tax collection: $359 per capita (5th lowest)
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45. Hawaii
> Combined state and avg. local sales tax rate: 4.4%
> State sales tax rate: 4.0% (tied — 7th lowest)
> Avg. local sales tax rate: 0.4% (19th lowest)
> State and local general sales tax collection: $2,888 per capita (the highest)
Source: DenisTangneyJr / E+ via Getty Images
44. Wyoming
> Combined state and avg. local sales tax rate: 5.2%
> State sales tax rate: 4.0% (tied — 7th lowest)
> Avg. local sales tax rate: 1.2% (25th highest)
> State and local general sales tax collection: $1,491 per capita (13th highest)
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43. Wisconsin
> Combined state and avg. local sales tax rate: 5.4%
> State sales tax rate: 5.0% (tied — 17th lowest)
> Avg. local sales tax rate: 0.4% (18th lowest)
> State and local general sales tax collection: $1,058 per capita (17th lowest)
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42. Maine
> Combined state and avg. local sales tax rate: 5.5%
> State sales tax rate: 5.5% (tied — 21st lowest)
> Avg. local sales tax rate: 0.0% (tied — 2nd lowest)
> State and local general sales tax collection: $1,20 per capita (25th highest)
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41. Virginia
> Combined state and avg. local sales tax rate: 5.8%
> State sales tax rate: 5.3% (20th lowest)
> Avg. local sales tax rate: 0.5% (20th lowest)
> State and local general sales tax collection: $812 per capita (8th lowest)
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40. Kentucky
> Combined state and avg. local sales tax rate: 6.0%
> State sales tax rate: 6.0% (tied — 25th lowest)
> Avg. local sales tax rate: 0.0% (tied — 2nd lowest)
> State and local general sales tax collection: $892 per capita (11th lowest)
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39. Maryland
> Combined state and avg. local sales tax rate: 6.0%
> State sales tax rate: 6.0% (tied — 25th lowest)
> Avg. local sales tax rate: 0.0% (tied — 2nd lowest)
> State and local general sales tax collection: $809 per capita (7th lowest)
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38. Michigan
> Combined state and avg. local sales tax rate: 6.0%
> State sales tax rate: 6.0% (tied — 25th lowest)
> Avg. local sales tax rate: 0.0% (tied — 2nd lowest)
> State and local general sales tax collection: $963 per capita (12th lowest)
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37. Idaho
> Combined state and avg. local sales tax rate: 6.0%
> State sales tax rate: 6.0% (tied — 25th lowest)
> Avg. local sales tax rate: 0.0% (14th lowest)
> State and local general sales tax collection: $1,098 per capita (18th lowest)
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36. Vermont
> Combined state and avg. local sales tax rate: 6.2%
> State sales tax rate: 6.0% (tied — 25th lowest)
> Avg. local sales tax rate: 0.2% (16th lowest)
> State and local general sales tax collection: $687 per capita (6th lowest)
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35. Massachusetts
> Combined state and avg. local sales tax rate: 6.3%
> State sales tax rate: 6.3% (tied — 15th highest)
> Avg. local sales tax rate: 0.0% (tied — 2nd lowest)
> State and local general sales tax collection: $992 per capita (14th lowest)
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34. Pennsylvania
> Combined state and avg. local sales tax rate: 6.3%
> State sales tax rate: 6.0% (tied — 25th lowest)
> Avg. local sales tax rate: 0.3% (17th lowest)
> State and local general sales tax collection: $996 per capita (15th lowest)
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33. Connecticut
> Combined state and avg. local sales tax rate: 6.4%
> State sales tax rate: 6.4% (12th highest)
> Avg. local sales tax rate: 0.0% (tied — 2nd lowest)
> State and local general sales tax collection: $1,287 per capita (19th highest)
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32. South Dakota
> Combined state and avg. local sales tax rate: 6.4%
> State sales tax rate: 4.5% (tied — 14th lowest)
> Avg. local sales tax rate: 1.9% (18th highest)
> State and local general sales tax collection: $1,720 per capita (7th highest)
Source: Sean Pavone / iStock via Getty Images
31. West Virginia
> Combined state and avg. local sales tax rate: 6.5%
> State sales tax rate: 6.0% (tied — 25th lowest)
> Avg. local sales tax rate: 0.5% (21st lowest)
> State and local general sales tax collection: $868 per capita (10th lowest)
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30. New Jersey
> Combined state and avg. local sales tax rate: 6.6%
> State sales tax rate: 6.6% (8th highest)
> Avg. local sales tax rate: 0.0% (the lowest)
> State and local general sales tax collection: $1,221 per capita (23rd highest)
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29. Nebraska
> Combined state and avg. local sales tax rate: 6.9%
> State sales tax rate: 5.5% (tied — 21st lowest)
> Avg. local sales tax rate: 1.4% (22nd highest)
> State and local general sales tax collection: $1,233 per capita (22nd highest)
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28. Iowa
> Combined state and avg. local sales tax rate: 6.9%
> State sales tax rate: 6.0% (tied — 25th lowest)
> Avg. local sales tax rate: 0.9% (23rd lowest)
> State and local general sales tax collection: $1,188 per capita (24th lowest)
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27. North Dakota
> Combined state and avg. local sales tax rate: 7.0%
> State sales tax rate: 5.0% (tied — 17th lowest)
> Avg. local sales tax rate: 2.0% (16th highest)
> State and local general sales tax collection: $1,740 per capita (6th highest)
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26. North Carolina
> Combined state and avg. local sales tax rate: 7.0%
> State sales tax rate: 4.8% (16th lowest)
> Avg. local sales tax rate: 2.2% (14th highest)
> State and local general sales tax collection: $1,127 per capita (20th lowest)
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25. Indiana
> Combined state and avg. local sales tax rate: 7.0%
> State sales tax rate: 7.0% (tied — 5th highest)
> Avg. local sales tax rate: 0.0% (tied — 2nd lowest)
> State and local general sales tax collection: $1,202 per capita (24th highest)
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24. Rhode Island
> Combined state and avg. local sales tax rate: 7.0%
> State sales tax rate: 7.0% (tied — 5th highest)
> Avg. local sales tax rate: 0.0% (tied — 2nd lowest)
> State and local general sales tax collection: $1,057 per capita (16th lowest)
Source: SeanPavonePhoto / iStock via Getty Images
23. Florida
> Combined state and avg. local sales tax rate: 7.0%
> State sales tax rate: 6.0% (tied — 25th lowest)
> Avg. local sales tax rate: 1.0% (24th lowest)
> State and local general sales tax collection: $1,439 per capita (15th highest)
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22. Mississippi
> Combined state and avg. local sales tax rate: 7.1%
> State sales tax rate: 7.0% (tied — 5th highest)
> Avg. local sales tax rate: 0.1% (15th lowest)
> State and local general sales tax collection: $1,254 per capita (21st highest)
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21. Utah
> Combined state and avg. local sales tax rate: 7.2%
> State sales tax rate: 6.1% (16th highest)
> Avg. local sales tax rate: 1.1% (25th lowest)
> State and local general sales tax collection: $1,194 per capita (25th lowest)
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20. Ohio
> Combined state and avg. local sales tax rate: 7.2%
> State sales tax rate: 5.8% (24th lowest)
> Avg. local sales tax rate: 1.5% (21st highest)
> State and local general sales tax collection: $1,286 per capita (20th highest)
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19. Georgia
> Combined state and avg. local sales tax rate: 7.3%
> State sales tax rate: 4.0% (tied — 7th lowest)
> Avg. local sales tax rate: 3.3% (7th highest)
> State and local general sales tax collection: $977 per capita (13th lowest)
Source: Sean Pavone / iStock via Getty Images
18. South Carolina
> Combined state and avg. local sales tax rate: 7.4%
> State sales tax rate: 6.0% (tied — 25th lowest)
> Avg. local sales tax rate: 1.4% (23rd highest)
> State and local general sales tax collection: $865 per capita (9th lowest)
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17. Minnesota
> Combined state and avg. local sales tax rate: 7.5%
> State sales tax rate: 6.9% (6th highest)
> Avg. local sales tax rate: 0.6% (22nd lowest)
> State and local general sales tax collection: $1,152 per capita (22nd lowest)
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16. Colorado
> Combined state and avg. local sales tax rate: 7.8%
> State sales tax rate: 2.9% (6th lowest)
> Avg. local sales tax rate: 4.9% (3rd highest)
> State and local general sales tax collection: $1,439 per capita (16th highest)
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15. New Mexico
> Combined state and avg. local sales tax rate: 7.8%
> State sales tax rate: 5.1% (19th lowest)
> Avg. local sales tax rate: 2.7% (11th highest)
> State and local general sales tax collection: $1,974 per capita (4th highest)
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14. Texas
> Combined state and avg. local sales tax rate: 8.2%
> State sales tax rate: 6.3% (tied — 15th highest)
> Avg. local sales tax rate: 1.9% (17th highest)
> State and local general sales tax collection: $1,614 per capita (10th highest)
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13. Nevada
> Combined state and avg. local sales tax rate: 8.2%
> State sales tax rate: 6.9% (7th highest)
> Avg. local sales tax rate: 1.4% (24th highest)
> State and local general sales tax collection: $2,052 per capita (3rd highest)
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12. Missouri
> Combined state and avg. local sales tax rate: 8.3%
> State sales tax rate: 4.2% (12th lowest)
> Avg. local sales tax rate: 4.1% (6th highest)
> State and local general sales tax collection: $1,129 per capita (21st lowest)
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11. Arizona
> Combined state and avg. local sales tax rate: 8.4%
> State sales tax rate: 5.6% (23rd lowest)
> Avg. local sales tax rate: 2.8% (9th highest)
> State and local general sales tax collection: $1,642 per capita (9th highest)
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10. New York
> Combined state and avg. local sales tax rate: 8.5%
> State sales tax rate: 4.0% (tied — 7th lowest)
> Avg. local sales tax rate: 4.5% (4th highest)
> State and local general sales tax collection: $1,706 per capita (8th highest)
Source: Sean Pavone / iStock via Getty Images
9. Kansas
> Combined state and avg. local sales tax rate: 8.7%
> State sales tax rate: 6.5% (tied — 11th highest)
> Avg. local sales tax rate: 2.2% (15th highest)
> State and local general sales tax collection: $1,527 per capita (12th highest)
Source: Sean Pavone / iStock via Getty Images
8. Illinois
> Combined state and avg. local sales tax rate: 8.8%
> State sales tax rate: 6.3% (tied — 15th highest)
> Avg. local sales tax rate: 2.6% (12th highest)
> State and local general sales tax collection: $1,182 per capita (23rd lowest)
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7. California
> Combined state and avg. local sales tax rate: 8.8%
> State sales tax rate: 7.3% (the highest)
> Avg. local sales tax rate: 1.6% (20th highest)
> State and local general sales tax collection: $1,465 per capita (14th highest)
Source: Sean Pavone / iStock via Getty Images
6. Oklahoma
> Combined state and avg. local sales tax rate: 9.0%
> State sales tax rate: 4.5% (tied — 14th lowest)
> Avg. local sales tax rate: 4.5% (5th highest)
> State and local general sales tax collection: $1,374 per capita (18th highest)
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5. Alabama
> Combined state and avg. local sales tax rate: 9.2%
> State sales tax rate: 4.0% (tied — 7th lowest)
> Avg. local sales tax rate: 5.2% (the highest)
> State and local general sales tax collection: $1,124 per capita (19th lowest)
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4. Washington
> Combined state and avg. local sales tax rate: 9.3%
> State sales tax rate: 6.5% (tied — 11th highest)
> Avg. local sales tax rate: 2.8% (10th highest)
> State and local general sales tax collection: $2,260 per capita (2nd highest)
Source: Sean Pavone / iStock via Getty Images
3. Arkansas
> Combined state and avg. local sales tax rate: 9.5%
> State sales tax rate: 6.5% (tied — 11th highest)
> Avg. local sales tax rate: 3.0% (8th highest)
> State and local general sales tax collection: $1,603 per capita (11th highest)
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2. Tennessee
> Combined state and avg. local sales tax rate: 9.5%
> State sales tax rate: 7.0% (tied — 5th highest)
> Avg. local sales tax rate: 2.5% (13th highest)
> State and local general sales tax collection: $1,411 per capita (17th highest)
Source: felixmizioznikov / iStock via Getty Images
1. Louisiana
> Combined state and avg. local sales tax rate: 9.5%
> State sales tax rate: 4.5% (13th lowest)
> Avg. local sales tax rate: 5.1% (2nd highest)
> State and local general sales tax collection: $1,762 per capita (5th highest)
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