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Best & Worst States for Sales Tax

Tue Mar 28, 2017 14:13:50PM | Categories: Sales Tax Rates
Folders and spiral notebooks on a shelf at Walmart. By: Daniel Christensen

Every state figures out a way to collect revenue in the form of taxes, but not every state is equal in how they go about doing that. Some states have a high sales tax while others have no sales tax at all. This piece will focus on breaking down the best and worst states when it comes to their sales tax.

Five states have no state wide sales tax:

Oregon
New Hampshire
Montana
Delaware
Alaska

**Alaska and Montana state law allows localities to charge sales taxes**

The states with the highest state-wide sales tax are:

StatePercent
Tennessee7.0%
Rhode Island7.0%
New Jersey7.0%
Mississippi7.0%
Indiana7.0%
California7.5%

The states with the lowest state-wide sales tax that isn't zero percent are:

StatePercent
Wyoming4.0%
South Dakota4.0%
New York4.0%
Louisiana4.0%
Hawaii4.0%
Georgia4.0%
Alabama4.0%
Colorado2.9%

The vast majority of states do not have an additional sales tax on grocery items, but nine states do:

StatePercent
Puerto Rico1,0%
Illinois1.0% (Some locations tax more)
Missouri1.225%
Arkansas1.5%
North Carolina2.0%
Virginia2.5%
Georgia3.0% (max)
Utah3.0%
Tennessee5.0% (Some locations tax more)
Louisiana7.0% (max)

Massachusetts and New York have an additional sales tax on clothing purchases that reach a certain threshold. That threshold is $175 in Massachusetts and $110 in New York. Vermont is unique and has no tax for clothing at all unless you spend more than $110. Then you will be subject to a 6.0% sales tax.

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180 days ago
Replies (0)
This is so not fair.