Sales Tax Rates by State in the U.S.
45 states plus Washington D.C. collect sales tax from transactions in their state. Many states also allow local sales tax. Sales tax rates varies significantly across the U.S.
Many states did not collect sales tax for eCommerce (online) sales to customers outside the state the business operated in. That all changed with a 5/4 Supreme Court Internet Tax decision on June 21, 2018 that gives states permission to collect sales tax from businesses that did not have nexus (operate within their state), regardless of where the customer lives.
How Many Sales Tax Rates Are There?
There are approximately 10,000 sales tax jurisdictions across the United States. While each state sets a flat sales tax rate, local sales tax rates can vary greatly within a state, making calculation, collection and payment far from simple.
Oregon, Delaware, Montana, New Hampshire and Alaska are currently the only states that do not charge state sales tax. Alaska does allow local sales tax to be collected, which averages around 1.76% but can be as high as 7.5%.
State and Local Sales Tax Rates – 2018
| State | Maximum State Tax Rate | Maximum Local Rate | Maximum Total Sales Tax | |||
| Alabama | 4.00% | 7.50% | 11.50% | |||
| Alaska | 0.00% | 7.50% | 7.50% | |||
| Arizona | 5.60% | 5.30% | 10.90% | |||
| Arkansas | 6.50% | 5.13% | 11.63% | |||
| California (b) | 7.25% | 2.50% | 9.75% | |||
| Colorado | 2.90% | 8.30% | 11.20% | |||
| Connecticut | 6.35% | 0.00% | 6.35% | |||
| Delaware | 0.00% | 0.00% | 0.00% | |||
| Florida | 6.00% | 2.00% | 8.00% | |||
| Georgia | 4.00% | 4.90% | 8.90% | |||
| Hawaii (c) | 4.00% | 0.50% | 4.50% | |||
| Idaho | 6.00% | 3.00% | 9.00% | |||
| Illinois | 6.25% | 4.75% | 11.00% | |||
| Indiana | 7.00% | 0.00% | 7.00% | |||
| Iowa | 6.00% | 1.00% | 7.00% | |||
| Kansas | 6.50% | 4.00% | 10.50% | |||
| Kentucky | 6.00% | 0.00% | 6.00% | |||
| Louisiana | 5.00% | 7.00% | 12.00% | |||
| Maine | 5.50% | 0.00% | 5.50% | |||
| Maryland | 6.00% | 0.00% | 6.00% | |||
| Massachusetts | 6.25% | 0.00% | 6.25% | |||
| Michigan | 6.00% | 0.00% | 6.00% | |||
| Minnesota | 6.88% | 2.00% | 8.88% | |||
| Mississippi | 7.00% | 1.00% | 8.00% | |||
| Missouri | 4.23% | 5.39% | 9.62% | |||
| Montana (d) | 0.00% | 0.00% | 0.00% | |||
| Nebraska | 5.50% | 2.00% | 7.50% | |||
| Nevada | 6.85% | 1.42% | 8.27% | |||
| New Hampshire | 0.00% | 0.00% | 0.00% | |||
| New Jersey (e) | 6.63% | 3.31% | 9.94% | |||
| New Mexico (c) | 5.13% | 4.13% | 9.25% | |||
| New York | 4.00% | 4.88% | 8.88% | |||
| North Carolina | 4.75% | 2.75% | 7.50% | |||
| North Dakota | 5.00% | 3.50% | 8.50% | |||
| Ohio | 5.75% | 2.25% | 8.00% | |||
| Oklahoma | 4.50% | 6.50% | 11.00% | |||
| Oregon | 0.00% | 0.00% | 0.00% | |||
| Pennsylvania | 6.00% | 2.00% | 8.00% | |||
| Rhode Island | 7.00% | 0.00% | 7.00% | |||
| South Carolina | 6.00% | 3.00% | 9.00% | |||
| South Dakota (c) | 4.50% | 4.50% | 9.00% | |||
| Tennessee | 7.00% | 2.75% | 9.75% | |||
| Texas | 6.25% | 2.00% | 8.25% | |||
| Utah (b) | 5.95% | 2.65% | 8.60% | |||
| Vermont | 6.00% | 1.00% | 7.00% | |||
| Virginia (b) | 5.30% | 0.70% | 6.00% | |||
| Washington | 6.50% | 3.90% | 10.40% | |||
| West Virginia | 6.00% | 1.00% | 7.00% | |||
| Wisconsin | 5.00% | 1.75% | 6.75% | |||
| Wyoming | 4.00% | 2.00% | 6.00% | |||
| D.C. | 5.75% | 0.00% | 5.75% | |||
| (a) City, county and municipal rates vary. These rates are weighted by population to compute an average local tax rate. | ||||||
| (b) Three states levy mandatory, statewide, local add-on sales taxes at the state level: California (1.25%), Utah (1.25%), Virginia (1%), we include these in their state sales tax. | ||||||
| (c) The sales taxes in Hawaii, New Mexico, North Dakota, and South Dakota have broad bases that include many services. | ||||||
| (d) Special taxes in local resort areas are not counted here. | ||||||
| (e) Salem County is not subject to the statewide sales tax rate and collects a local rate of 3.3125%. New Jersey’s average local score is represented as a negative. | ||||||
| Source: Sales Tax Clearinghouse, Tax Foundation calculations, State Tax and Revenue websites. | ||||||
