State and Local Sales Tax Rates Analysis: Midyear 2024 Insights and Trends

• 45 states and the District of Columbia collect statewide sales taxes
• Local sales taxes are collected in 38 states, sometimes exceeding state rates
• The five states with the highest average combined state and local sales tax rates are Louisiana, Tennessee, Arkansas, Washington, and Alabama
• Sales tax rates differ by state and can impact revenue collection and the economy
• Consumers may shop across borders or online due to sales tax differentials
• Retail sales taxes account for 32% of state tax collections and 13% of local tax collections
• Alaska, Delaware, Montana, New Hampshire, and Oregon do not have statewide sales taxes
• California has the highest state-level sales tax rate at 7.25%
• No state rates have changed recently, with South Dakota and New Mexico being exceptions

Source: taxfoundation.org

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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