VATupdate

Share this post on

Sales Tax Rates in Major Cities, Midyear 2021

Key Findings

  • There are over 11,000 sales tax jurisdictions in the United States, with widely varying rates.
  • Among major cities, Tacoma, Washington imposes the highest combined state and local sales tax rate, at 10.30 percent. Five other cities—Fremont, Los Angeles, and Oakland, California; Chicago, Illinois; and Seattle, Washington—are tied for the second highest rate of 10.25 percent. Birmingham, Alabama, at 10 percent, rounds out the list of major cities with a combined rate of 10 percent or higher.
  • Neither Anchorage, Alaska, nor Portland, Oregon, impose any state or local sales taxes. Honolulu, Hawaii, has a low rate of 4.5 percent and several other major cities, including Milwaukee and Madison, Wisconsin, keep overall rates modest.
  • Successful ballot measures yielded local sales tax increases in eight major cities last year, with a voter-approved 0.10 percentage point increase in Tacoma, Washington giving it the highest overall rate in a major city.
  • Three cities—Fremont, Oakland, and Oxnard, California—saw sales tax rate increases of 1 percent or more in the first half of 2021.
  • Research demonstrates a rise in cross-border shopping and other avoidance efforts as sales tax rates increase.

Source Tax Foundation

Sponsors:

VAT news
VAT news

Advertisements:

  • AXWAY - VATupdate Banner