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States with Highest and Lowest Average Combined State and Local Sales Tax Rates

  • The five states with the highest average combined state and local sales tax rates are Louisiana, Tennessee, Arkansas, Washington, and Alabama.
  • The five states with the lowest average combined rates are Alaska, Hawaii, Wyoming, Maine, and Wisconsin.
  • Alaska is the only state that allows localities to impose local sales taxes.
  • California has the highest state-level sales tax rate at 7.25 percent.
  • Colorado has the lowest non-zero state-level sales tax rate at 2.9 percent.
  • South Dakota and New Mexico have recently reduced their state sales tax rates.
  • Louisiana reduced its state sales tax rate in July 2018.
  • Many states have prioritized income tax cuts over sales tax rate reductions.

Source: taxconnections.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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