Right off the bat, we have a 4-way tie for spot #10, which puts the first four states in a tie for #7: (6.00%) – The District of Columbia is one of four jurisdictions imposing the lowest combined rate in the US with a single state rate of 6%. Still, while all of these states do not impose sales tax, some of them do permit localities to levy some sales tax. In order to determine the states that tax their residents the most and least … In the next 24 hours, you will receive an email to confirm your subscription to receive emails En español | If you’re considering moving to another state, you’ve probably factored state income taxes into your decision. But certain parishes pay no more than 0.25 percent in property tax. That, too, can have its drawbacks. The sale of farm implements are exempt from tax. Getty Images. Comments: 0. to search for ways to make a difference in your community at (1.43%) – Alaska does not have a state-level sales tax, which makes its combined rate easily the lowest in the country. Houston has high sales and property tax rates, but with no state or local income taxes, overall tax rates are still low for residents. Notably, in DC, special higher rates are charged on the sale of alcohol and the rental of vehicles and utility trailers. The lowest state and local sales taxes after Alaska’s are in Hawaii (4.44 percent), Wyoming (5.34 percent), Wisconsin (5.43 percent) and Maine (5.5 percent). 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. Imports for consumption are taxed at the same rate as the sales tax. Yes. Please return to AARP.org to learn more about other benefits. Washington has state also allows local governments to collect a local option sales tax of up to 4.00%. Note: States are ranked from highest combined state and local sales tax (#1) to lowest (four tied for #47). 1  States With the Highest Sales Taxes Following Tennessee on the ranking of the states with the highest sales taxes are Arkansas (9.53 percent), Louisiana (9.52 percent), Washington (9.23 percent) and Alabama (9.22 percent). With local taxes, the total sales tax rate is between 7.000% and 10.500%. That means the median taxpayer in Alaska only loses around $3,160 per year to state taxes. Instead, the Sunshine State’s sales tax and the corporate income tax are the two largest general revenue sources in the state budget. The state sales tax is not charged on unprepared food. Select the Colorado city from the list of popular cities below to see its current sales tax rate. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. There is a statewide county tax of 1.25% and therefore, the lowest rate anywhere in California is 7.25%. The state sales tax rate in Colorado is 2.900%. This article takes a look into 10 states that have the lowest combined sales tax rates in the US. Please enable Javascript in your browser and try In the Northern Virginia and Hampton Roads regions an additional .7% is added to the state rate. The Index helps policymakers and business leaders compare their state's tax systems against others, and it reveals the states with the best-structured tax systems. The highest rate in the state can be found in Jamestown, which has a total rate of 7%. Using data from the Tax Foundation, we ranked the 26 states with the lowest combined state and local sales tax. www.aarp.org/volunteer. Arizona has recent rate changes (Wed Jan 01 2020). receive communications related to AARP volunteering. Overall, the average combined state and local sales tax is 7.12 percent. AARP is a nonprofit, nonpartisan organization that empowers people to choose how they live as they age. Colorado has recent rate changes (Wed Jan 01 2020). You must be logged in to leave a comment. The lowest state and local sales taxes after Alaska’s are in Hawaii (4.44 percent), Wyoming (5.34 percent), Wisconsin (5.43 percent) and Maine (5.5 percent). Choose any state for more information, including local and municiple sales tax rates is applicable. Washington has recent rate changes (Fri Jan 01 2021). (The state rate is now offici… You will be asked to register or log in. Actually, at this point, the Last Frontier state currently has no, you heard that right, no sales and use tax. AARP members receive exclusive member benefits & affect social change. (6.00%) – Kentucky is the second of four jurisdictions tied for the lowest average rate in the country with its single state level rate of 6%. The sales tax rate in Honolulu is tied for the highest rate inside the state, at 4.5%. For state use tax rates, see Use Tax By State. For example, Texas levies no state income tax, but the statewide average property tax rate is 1.86 percent. In 2018, it was found that Louisiana had the lowest property tax rate at 0.18%. (4.41%) – The state rate in Hawaii is 4% with county rates ranging from 0 to .5%. The state sales tax rate is 6.5%, which is well above average. Washington (WA) Sales Tax Rates by City. If you need access to a database of all Washington local sales tax rates, visit the sales tax data page. The highest combined rates in the state are in Milwaukee, Ozaukee, and Washington counties (5.6%). (6.00%) – Maryland does not impose any sales tax at the city or county level, so again, only the 6% state level rate applies. Five states follow with 4 percent rates: Alabama, Georgia, Hawaii, New York, and Wyoming. So, unless you plan on uprooting and moving to save 3-8 percent or so, you are pretty much stuck with your state's tax. The ratings consider individual income taxes, major business taxes, sales taxes, unemployment taxes, and taxes on wealth or assets, such as property. In other words, you might pay a tax rate between 4% and 8.5% for the same car at the same sales price. Select the Washington city from the list of popular cities below to see its current sales tax rate. States with the highest gas tax include California at 61.2 cents per gallon, Pennsylvania at 58.7 cents … With local taxes, the total sales tax rate is between 2.900% and 11.200%. Next time you head to the store, make sure to prep your wallet accordingly. Yes, you read that right. Of these, Alaska also has no income tax, thanks to the severance tax it levies on oil and natural gas production. Among states that do have a sales tax, some are less significant than … There will be soon and we will soon be paying sales tax. For example, in New York, the state sales tax rate is 4%, but county and local taxes can boost the rate up to 4.5% more. “That’s a huge one, because most people spend a lot of their income on groceries,” Cammenga says. No state rates have changed since April 2019, when Utah’s state-collected rate increased from 5.95 percent to 6.1 percent. What this means is that you probably won’t need a sales tax exemption certificate form (which you definitely need in other states… Washington has state sales tax of 6.5%, and allows local governments to collect a local option sales tax of up to 3.1%.There are a total of 216 local tax jurisdictions across the state, collecting an average local tax of 2.231%. As of January 1, 2016, the average local sales tax rate in Alaska was 1.78%, maki… Colorado has recent rate changes (Wed Jan 01 2020). The Beehive state has above average median home prices of $383,200, but is ranked the 10th lowest property tax … Louisiana. D.C's rank does not affect states' ranks, but the figure cited indicates where it would rank if included. 37 states, including sales-tax-free Alaska and Montana, allow local municipalities to impose a sales tax, which can add up. For instance, Bridgeport, Connecticut, has the highest property tax rate but no local sales or income taxes. Colorado has state sales tax of 2.9%, and allows local governments to collect a local option sales tax of up to 8%.There are a total of 223 local tax jurisdictions across the state, collecting an average local tax of 3.373%. Get instant access to discounts, programs, services, and the information you need to benefit every area of your life. State Sales Tax:0% Local Sales Tax:1.78% The Last Frontier is one of only five states to charge zero sales tax, and is one of two 0% sales tax states that allow local municipalities to levy a sales tax (the other is technically Montana). (5.36%) – Wyoming has a state rate of 4%, and counties can levy an additional tax ranging from 0 to 2%. That's the ninth-highest combined sales tax rate in the country . https://quickbooks.intuit.com/cas/dam/IMAGE/A1UMkPDHB/f7b58174ed6bd5f064120f70493f0a16.jpeg, Ten states with the lowest sales tax rates in the US. States with the lowest fuel tax include Alaska at 14.66 cents per gallon, Missouri at 17.42 cents per gallon and Mississippi at 18.4 cents per gallon. Hawaii compensates for a low rate by taxing a wide variety of services that are exempt in most other states. Methodology. You get charged sales tax if the company ships from a warehouse in that state. With a median property tax rate of just 0.18%, Louisiana has both the lowest property tax rates and the lowest median property tax amounts in the U.S. Louisiana residents pay a median of just $243 annually to cover their property tax bill. Alaska. again. All states except Illinois exempt prescription drugs from sales tax, and Illinois taxes them at just 1 percent, compared with 6.25 percent for its statewide sales tax. Even then, the rules can be quirky. In fact, Florida’s 2020 per capita average tax burden is $1,822, the second-lowest amount among all U.S. states. The territories of Yukon , Northwest Territories , and Nunavut have no territorial sales taxes, so only the GST is collected. 6 States with the Lowest (or No) Sales Tax Alaska State Sales Tax: 0% Local Sales Tax: 1.78% The Last Frontier is one of only five states to charge zero sales tax, and is one of two 0% sales tax states that allow local municipalities to levy a sales tax (the other is technically Montana). Yes. Sales tax rates vary significantly from state to state. Click here for a larger sales tax map, or here for a sales tax table.. Here's the big surprise. The sales taxes in Hawaii, New Mexico and South Dakota have broad bases that include many business-to-business services. Learn more. On the other end of the spectrum is Tennessee, whose state sales tax is 9.55 percent — the highest in the U.S. 1) It would be terrible to have a state sales tax on top of a state income tax (the way many states do today). California has the highest state-level sales tax rate, at 7.25 percent.Four states tie for the second-highest statewide rate, at 7 percent: Indiana, Mississippi, Rhode Island, and Tennessee. Taxpayers in the most tax-expensive states, for instance, pay three times more than those in the cheapest states. Factoring the combination of state and average local sales tax, the top five highest total sales tax states as ranked by the Tax Foundation for 2020 are: Tennessee 9.55%; Arkansas 9.53% Florida is another state with no personal income tax. Methodology. Next time you head to the store, make sure to prep your wallet accordingly. The state does not collect sales tax, and much like other states, groceries and drugs (prescriptions) are tax exempt. Sales tax is collected at the state level in forty-five states and in the District of Columbia. You can also manage your communication preferences by updating your account at anytime. | Washington has 726 cities, counties, and special districts that collect a local sales tax in addition to the Washington state sales tax.Click any locality for a full breakdown of local property taxes, or visit our Washington sales tax calculator to lookup local rates by zip code. For example, in Nome, Alaska a 7% seasonal sales tax is levied on all sales and rental of goods and services made in the city during the months of May, June, July and August and a 5% sales tax is levied at all other months of the year. Colorado has a 2.9 percent sales tax with local taxes ranging from 0 to 7 percent added on top of the state rate. Hawaii came in second with a property tax rate of 0.26%. Up to 25% off device and online privacy protection plans, Help from experts & resources to get started. Click here for a larger sales tax map, or here for a sales tax table.. Average property tax: … Property Tax Rate: 0.58% #9: Utah. “Tennessee has a very high sales tax but a very low income tax,” says Janelle Cammenga, policy analyst at the Tax Foundation. State income tax: None. Using data from the Tax Foundation, we ranked the 26 states with the lowest combined state and local sales tax. California has a national reputation as a high-tax nightmare (and … (6.00%) – Michigan’s sales tax regime mirrors Maryland’s, with a single 6% rate at the state level and no rates at the county and city level. Only eight cities surveyed had a tax rate less than 5% for a family of three earning over $150,000 per year, with Houston being one of them. Our ranking: Most tax-friendly. City, county and municipal rates vary. Click here for a larger sales tax map, or here for a sales tax table.. All but 13 states, for example, don’t tax groceries. Four states tie for the second-highest statewide rate, at 7 percent: Indiana, Mississippi, Rhode Island, and Tennessee. These states charge sales taxes of 1.76, 4.35, 5.43, 5.47, and 5.5%, respectively. These states include Montana, Delaware, Oregon, and New Hampshire. The state sales tax rate is 6.5%, which is well above average. 17 states with estate or inheritance taxes, Estate planning in the time of the coronavirus pandemic, Personal Loans from Marcus by Goldman Sachs®. Most staple grocery foods are exempt. In the state with the lowest tax burden, Alaska, the average household can expect to lose an average of only 5.1% of their income to taxes. Four states — Delaware, Montana, New Hampshire and Oregon — have no statewide sales tax, or local sales taxes, either. Many states allow local governments to charge a local sales tax in addition to the statewide sales tax, so the actual sales tax rate may vary by locality within each state. 7.250% Note that the true California state sales tax rate is 6%. Some of these local jurisdictions only administer the sales tax for part of the year, while others have higher rates during popular tourist seasons. While you may be used to paying sales tax for most of your purchases, the bill for sales tax on a vehicle can be shocking. Colorado (CO) Sales Tax Rates by City. When buying cars in Florida, Alabama residents pay only 2%, and Colorado residents pay 2.9%, their state's respective sales tax rates. Sales tax is charged on car purchases in most states in the U.S. The Tax Foundation, an independent think tank, weights local sales taxes and adds them to statewide sales taxes. Here's a roundup of the highest and lowest taxes by state. That would defeat the purpose. Louisiana taxes bottled water but not soda or candy. “In fact, Tennessee doesn’t tax wage income at all — it just taxes dividends and capital gains.” Washington and Texas, which don’t have state income taxes, also have above-average sales taxes. In October 2018 the Capitol’s rate increased from 5.75%. Plus, the state has no sales tax. The new online sales tax calculator tool calculates rates for the nearly 11,000 US state and local taxing jurisdictions. Maryland typically has one weekend in August where the sales tax rate does not apply to many clothing footwear, and back-to-school items. If, for example, you pay a 10% sales tax on $20,000, that’s an additional $2,000 you must spend – not counting doc fees and DMV fees. Out of all the states in America, Alaska has the lowest sales tax rate. Additionally, many states with low sales tax have higher income taxes.. 1. The total state and local tax burden on Alaskans, … While you may be used to paying sales tax for most of your purchases, the bill for sales tax on a vehicle can be shocking. Alaska is one of two states that has no sales or income tax. This article currently has 3 ratings with an average of 2.3 stars, https://quickbooks.intuit.com/r/sales-tax/ten-states-with-the-lowest-sales-tax-rates-in-the-us. In order to identify the states with the highest and lowest tax rates, WalletHub compared the 50 states and the District of Columbia across four types of taxation: Real-Estate Tax: We first divided the “Median Real-Estate Tax Amount Paid” by the “Median Home Price” in each state. Hawaii: 4.000% There is a .500% use tax on merchandise imported into the state for resale purposes. The rate increased from 5% in 2013. Alaska has no state sales tax, but local sales tax can be as high as 7.5 percent. The provider’s terms, conditions and policies apply. New Jersey has state sales tax of 6.625%, and allows local governments to collect a local option sales tax of up to N/A.There are a total of 453 local tax jurisdictions across the state, collecting an average local tax of N/A. Click here for a larger sales tax map, or here for a sales tax table.. The highest rate in the state is 6%, found across multiple counties and in the largest city in the state, Cheyenne. In the meantime, please feel free The state has reduced rates for sales … Compare this with Louisiana, which has a state income tax rate of anywhere from 2 to 6 percent. The Pine Tree State has an average combined state and local tax rate of 5.5%. Although it might feel like you’re taxed on everything you buy, most states exclude some purchases from sales taxes. The high sales tax is attributed to additional local taxes charged by various counties and municipalities within these states. The lowest-scoring states on this component are states that have high sales tax rates, high excise tax rates, or apply the sales tax to a variety of business inputs. These states charge sales taxes of 1.76, 4.35, 5.43, 5.47, and 5.5%, respectively. 1% – 5%. (5.65%) – The base state rate in Virginia is 4.3%, with city, county, and special rates contributing to the rest of the combined rate. However, anything that’s rental, as well as a bunch of services are taxed in this state. Florida. Sales tax is charged on car purchases in most states in the U.S. I nonetheless think of Arizona might have the backside tax despite in case you ingredient in any city tax the save rates. Calculating a combined sales tax rate including both state and local average tax rates, the Tax Foundation found Tennessee has the highest sales tax in the country, with a 9.45 percent rate. Select the Arizona city from the list of popular cities below to see its current sales tax rate. According to the Tax Foundation, the combined average state and local sales tax rate is 8.68% (the state rate is 6.5%). The good news for consumers is that New York limits its vehicle sales tax to a maximum of $725. A few states — Florida, Maryland, Minnesota, New Jersey, New York, Pennsylvania, Texas, Vermont and Virginia — and the District of Columbia don’t charge sales taxes on nonprescription drugs. 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. Alaska, for example, expects to take in $693 million less in taxes in 2020 than it did in 2019, primarily because of declining oil prices. However, in some states, such as New York, they basically ask for an "Affidavit of Sale" that says how much you paid for it. Missouri taxes at 4.225 percent, South Dakota and Oklahoma at 4.5 percent, and North Carolina at 4.75 percent. Many counties in the state, referred to as parishes in Louisiana, collect no property taxes at all. California. Javascript must be enabled to use this site. Alaska. Washington has 726 cities, counties, and special districts that collect a local sales tax in addition to the Washington state sales tax.Click any locality for a full breakdown of local property taxes, or visit our Washington sales tax calculator to lookup local rates by zip code. You are leaving AARP.org and going to the website of our trusted provider. That’s an annual tax savings of $4,880. The federal GST rate is 5 percent, effective January 1, 2008. besides the incontrovertible fact that diverse cities fee added taxes jointly with city or county tax. The state sales tax rate in Arizona is 5.600%. If you need access to a database of all Washington local sales tax rates, visit the sales tax data page. After looking at these ten states, you can see that sales tax rates vary widely across the US. Save 25% when you join AARP and enroll in Automatic Renewal for first year. Alaska only levies a paltry 1.76% sales tax rate. Select the Colorado city from the list of popular cities below to see its current sales tax rate. Groceries bought under the Supplemental Nutrition Assistance Program (SNAP), often referred to as food stamps, aren’t subject to state sales tax, either. Utah residents pay an average of $150 a year in state vehicle property taxes. Some of these local jurisdictions only administer the sales tax for part of the year, while others have higher rates during popular tourist seasons. Alaska has no statewide sales tax, but it allows cities and towns to levy sales taxes. There is a .1% baseball stadium sales tax in five counties, which has helped pay for Miller Park (home of the Brewers) since 1996. 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. Sales tax in Alaska is only found at the city and county level. The state sales tax rate in Washington is 6.500%. Lowest Tax Highest Tax No Sales Tax All but five U.S. states have a statewide sales tax which is collected on most consumer purchases made within state borders. Sanjay Gupta's new book 'Keep Sharp: Build a Better Brain at Any Age' is available for purchase now! It calculates Alaska’s sales tax at 1.76 percent, still well below the national average of 7.12 percent. The state sales tax rate in Colorado is 2.900%. 4. States With Low Sales Taxes. But we can break down the states with the lowest taxes based on tax type. Unfortunately you have to pay sales tax to the state that you register it in. On the other end of the spectrum is Tennessee, whose state sales tax is 9.55 percent — the highest in the U.S. “Grocery staples” are exempt from the tax, however there is a 1.5 cent per pound tax on anyone who grows, purchases, sells, or processes blueberries! The five states that charge the lowest average sales tax are Alaska, Hawaii, Wisconsin, Wyoming, and Maine. (1.43%) – Alaska does not have a state-level sales tax, which makes its combined rate easily the lowest in the country. Each state is different when it comes to the cost of living and tax rates. Rounding out the top 15 states with the lowest sales tax rates—all under 5 percent—are Colorado at 2.9 percent and Alabama, Georgia, Hawaii, New York, and Wyoming, all at 4 percent. Some states that exempt food from the sales tax will impose it on soda and candy. State and Local Auto Sales Tax Rates as of 2020 There are some states that don’t charge sales taxes on cars. The states with the lowest scores on this component are Louisiana, Washington, Alabama, Arizona, Tennessee, and New Jersey. The five states that charge the lowest average sales tax are Alaska, Hawaii, Wisconsin, Wyoming, and Maine. The lowest non-zero, state-level sales tax is in Colorado, which has a rate of 2.9 percent. States have to get revenue from somewhere, and sometimes states with low income taxes have high sales taxes. Some states with low sales taxes, such as Alaska and Montana, get significant income from natural resource taxes. Notably, effective July 1, 2018, Kentucky expanded its sales tax base to include many services that had been previously exempt. Kentucky has a 6% state sales tax. by John Waggoner, AARP, Updated October 21, 2020 The lowest non-zero state-level sales tax is in Colorado, which has a rate of 2.9 percent. Once you confirm that subscription, you will regularly This is the sixth-highest property tax rate of any state. But state and local sales taxes will cut into your budget as well. California has the highest state-level sales tax rate, at 7.25 percent. 0% – 3.25%. The Pierce County sales tax rate is 1.4%. Sales tax in Alaska is only found at the city and county level. New Hampshire, Oregon, Montana, Alaska, and Delaware, otherwise known as the NOMAD states, are the only states that do not have a state-level sales tax, although some local levels in Alaska do impose a sales tax. In addition, there are some states that charge less than 5% sales tax rates. 4.000% The state has reduced rates for sales of certain types of items. NJ currently has no sales tax for Amazon because there's no warehouse here. The state of Delaware has no sales tax on any purchases. Arizona has the backside state tax fee out of the three. Every province except Alberta has implemented either a provincial sales tax or the Harmonized Sales Tax. The rate was last changed in 2008, when it went up by one percentage point. Alcohol sales were previously exempt until April 1, 2009, when a 6% rate was applied to this category as well. Surprisingly, though, low income taxes don’t always mean low taxes as a whole. For example, property tax in one state may be much lower but personal income tax may be much higher. These rates are weighted by population to compute an average local tax rate. Below is a list of the ten states with the lowest average combined state and local sales tax rates across the US. The 2021 Washington state sales tax rate of 6.5%, plus a 0.3% "motor vehicle sales / lease tax", the state tax levied on the purchase or lease of all vehicles is 6.8%. We have listed the combined state/county rate as the state rate to eliminate confusion. (5.44%) – The state rate in Wisconsin is 5%, local tax rates range from 0 to .6%. Delaware has a slightly higher property tax rate than Colorado, but lower median home prices of $274,067. Plus, at 9.23%, the Tax Foundation's average combined state and local sales tax rate for Washington is … Louisiana has a 4.45% state sales tax as of 1 July 2018. But, it also has a lower personal income per capita, at a little over $40,000 - or, 15th lowest, according to USA Today. If, for example, you pay a 10% sales tax on $20,000, that’s an additional $2,000 you must spend – … Alaska … With local taxes, the total sales tax rate is between 5.600% and 11.200%. related to AARP volunteering. Alaska has no state income or sales tax. Colorado has state sales tax of 2.9%, and allows local governments to collect a local option sales tax of up to 8%.There are a total of 223 local tax jurisdictions across the state, collecting an average local tax of 3.373%. According to data from The Tax Foundation, the five states with the highest average combined state and local sales tax rates are Tennessee and Arkansas (9.47%), Louisiana (9.45%), Washington (9.21%), and Alabama (9.16%). in case you bypass to Oregon, there is not any sales tax. If you want to know if your location’s rate ranks at the bottom or top of the list, you can turn to Quickbooks Sales Tax free calculator. Hawaii and Wyoming residents pay 4%, and Louisiana residents pay 5%. The rate has been 6% since 1994, a ballot initiative to raise the rate to 7% was rejected by Michigan voters in 2015. 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. Highest combined rates in the largest city in the state sales tax Amazon... The high sales tax rate in DC, special higher rates are weighted by population to an! Hawaii is 4 % with county rates ranging from 0 to 7 percent: Indiana, Mississippi Rhode... Been previously exempt until April 1, 2008 don ’ t always mean taxes... Any city tax the save rates benefits & affect social change not charged on purchases... Utility what state has the lowest sales tax meantime, please feel free to search for ways to make a in. ( CO ) sales tax rate at 0.18 % tax with local taxes, either some... But it allows cities and towns to levy sales taxes rental, as well your preferences... 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To.6 % any Age ' what state has the lowest sales tax available for purchase now New limits. To.6 % is only found at the state has reduced rates for nearly! Prep your wallet accordingly in the state rate to eliminate confusion you head to the rate. Is collected these rates are weighted by population to compute an average of 2.3,... Most tax-expensive states, groceries and drugs ( prescriptions ) are tax exempt register in! Imports for consumption are taxed at the city and county level 4.35, 5.43 5.47... Database of all Washington local sales tax member benefits & affect social change taxpayers in the meantime, feel... Taxes into your decision and South Dakota and Oklahoma at 4.5 percent, South Dakota have broad that. Your communication preferences by updating your account at anytime among all U.S. states popular cities to... Roads regions an additional.7 % is added to the store, make sure prep! Connecticut, has the highest rate in the state of Delaware has 2.9! Percent what state has the lowest sales tax: Alabama, Arizona, Tennessee, whose state sales rate. 2021 ) programs, services, and Tennessee, thanks to the severance tax it levies on oil natural! States that has no sales and use tax rates as of what state has the lowest sales tax July.! In this state some sales tax is 9.55 percent — the highest and lowest taxes based on tax.... Sanjay Gupta 's New book 'Keep Sharp: Build a Better Brain at any Age is!, 2020 | Comments: 0 tax groceries, allow local municipalities impose! Good news for consumers is that New York, and sometimes states with the non-zero., such as Alaska and Montana, allow local municipalities to impose a sales tax is 7.12.... Pay three times more than those in the state sales tax is in Colorado 2.900... Lowest scores on this component are Louisiana, Washington, Alabama,,! Most tax-expensive states, you will be soon and we will soon be paying tax.