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:
**Alaska and Montana state law allows localities to charge sales taxes**
The states with the highest state-wide sales tax are:
The states with the lowest state-wide sales tax that isn't zero percent are:
The vast majority of states do not have an additional sales tax on grocery items, but nine states do:
|Tennessee||5.0% (Some locations tax more)|
|Illinois||1.0% (Some locations tax more)|
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.