What Are the Best and Worst States for Sales Taxes?
Sales tax makes everything you buy just a little more expensive. And it’s not just state sales tax you have to worry about, some counties and cities tack on their own sales taxes in addition to the state sales tax. So, where will you have to shell out more money each time you go shopping?
The Tax Foundation, a non-partisan tax research group out of Washington D.C., has released a report that calculates each state’s average combined state and local sales tax rate, resulting in a list of the best and worst states for sales taxes.
States With the Lowest Sales Taxes
The obvious front runners are the states with no state or local sales tax, which are Delaware, Montana, New Hampshire, and Oregon. Alaska comes next with an average local sales tax rate of 1.76%. Rounding out the top ten states with the lowest sales taxes are Hawaii (4.35%), Wisconsin (5.43%), Wyoming (5.47%), Maine (5.5%), and Virginia (5.63%).
States With the Highest Sales Taxes
Tennessee came in as the state with the highest combined state and local sales tax rate with a top combined rate of 9.45%. After Tennessee, the states with the highest state and local sales tax rates are Arkansas (9.26%), Alabama (8.91%), Louisiana (8.91%) and Washington (8.89%).
More information: State and Local Sales Tax Rates in 2015, Tax Foundation.
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