Sales Tax USA By State

Related: Use USA sale tax calculator to find out your sale tax.

Sales tax in the United States is a key source of revenue for state governments, but the tax rates and regulations vary significantly from state to state.

Unlike a federal sales tax, the U.S. relies on individual states to set their own sales tax policies, leading to a complex and diverse tax landscape.

This article provides a detailed overview of sales tax rates and structures across different states, helping businesses and consumers understand how these taxes impact their purchases.

Understanding Sales Tax

Sales tax is a consumption tax imposed by state governments on the sale of goods and services. It is typically calculated as a percentage of the sale price and is collected at the point of purchase. The seller collects the tax from the buyer and then remits it to the state. Some states also allow local governments, such as cities and counties, to levy additional sales taxes, resulting in varying total tax rates depending on the location of the purchase.

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State-by-State Sales Tax Rates

Here’s a breakdown of sales tax rates across various states in the U.S. as of 2024:

1. Alabama: Alabama has a state sales tax rate of 4%, but local taxes can push the total sales tax rate up to 10% or more in certain areas.
2. Alaska: Alaska does not have a state-level sales tax, but local governments can impose their own sales taxes, with rates varying up to 7.5%.
3. Arizona: Arizona’s state sales tax rate is 5.6%, with local jurisdictions adding up to 5.3%, bringing the maximum rate to around 10.9%.
4. Arkansas: The state sales tax rate in Arkansas is 6.5%, and local taxes can add an additional 5%, resulting in a maximum combined rate of 11.5%.
5. California: California has the highest state-level sales tax in the country at 7.25%. Local taxes can increase the total sales tax rate to over 10% in some areas.
6. Colorado: Colorado has a relatively low state sales tax rate of 2.9%, but local taxes can increase the rate to as high as 11.2% depending on the locality.
7. Connecticut: Connecticut imposes a 6.35% state sales tax, with no local sales taxes allowed.
8. Delaware: Delaware is one of the five states that do not impose any sales tax at the state or local level.
9. Florida: Florida’s state sales tax rate is 6%, with local taxes adding up to 2.5%, resulting in a maximum rate of 8.5%.
10. Georgia: The state sales tax rate in Georgia is 4%, with local jurisdictions able to add up to 5%, leading to a total maximum rate of 9%.
11. Hawaii: Hawaii has a unique system called the General Excise Tax (GET), which is similar to a sales tax. The base rate is 4%, but additional surcharges can apply.
12. Idaho: Idaho imposes a state sales tax rate of 6%, with no local sales taxes.
13. Illinois: Illinois has a state sales tax rate of 6.25%, with additional local taxes that can bring the rate up to 11% in some areas.
14. Indiana: Indiana’s state sales tax rate is 7%, with no local sales taxes.
15. Iowa: Iowa has a state sales tax rate of 6%, with local taxes bringing the total rate up to 7%.
16. Kansas: Kansas imposes a state sales tax rate of 6.5%, with local taxes increasing the total rate to 10.5% in some areas.
17. Kentucky: Kentucky has a state sales tax rate of 6%, with no local sales taxes.
18. Louisiana: Louisiana has a state sales tax rate of 4.45%, but local taxes can increase the total rate to over 11% in some jurisdictions.
19. Maine: Maine’s state sales tax rate is 5.5%, with no local sales taxes.
20. Maryland: Maryland imposes a state sales tax rate of 6%, with no local sales taxes.
21. Massachusetts: Massachusetts has a state sales tax rate of 6.25%, with no local sales taxes.
22. Michigan: Michigan imposes a state sales tax rate of 6%, with no local sales taxes.
23. Minnesota: Minnesota’s state sales tax rate is 6.875%, with local taxes pushing the rate to over 8% in some areas.
24. Mississippi: Mississippi has a state sales tax rate of 7%, with no local sales taxes.
25. Missouri: Missouri imposes a state sales tax rate of 4.225%, with local taxes increasing the total rate to over 10% in some areas.
26. Montana: Montana does not have a state-level sales tax, but some localities may impose a sales tax on specific goods.
27. Nebraska: Nebraska’s state sales tax rate is 5.5%, with local taxes bringing the total rate to around 7.5%.
28. Nevada: Nevada imposes a state sales tax rate of 6.85%, with local taxes pushing the total rate to 8.375% or higher in some areas.
29. New Hampshire: New Hampshire does not impose a state sales tax.
30. New Jersey: New Jersey’s state sales tax rate is 6.625%, with no local sales taxes.
31. New Mexico: New Mexico has a state-level Gross Receipts Tax (GRT) that functions like a sales tax. The base rate is 5.125%, with local taxes increasing the rate to over 9% in some areas.
32. New York: New York has a state sales tax rate of 4%, with local taxes bringing the total rate to 8.875% in some areas.
33. North Carolina: North Carolina imposes a state sales tax rate of 4.75%, with local taxes bringing the total rate to 7.5% in some areas.
34. North Dakota: North Dakota’s state sales tax rate is 5%, with local taxes bringing the total rate to around 8%.
35. Ohio: Ohio imposes a state sales tax rate of 5.75%, with local taxes bringing the total rate to 8% in some areas.
36. Oklahoma: Oklahoma’s state sales tax rate is 4.5%, with local taxes increasing the rate to over 11% in some areas.
37. Oregon: Oregon does not have a state-level sales tax.
38. Pennsylvania: Pennsylvania’s state sales tax rate is 6%, with local taxes bringing the total rate to 8% in some areas.
39. Rhode Island: Rhode Island imposes a state sales tax rate of 7%, with no local sales taxes.
40. South Carolina: South Carolina’s state sales tax rate is 6%, with local taxes bringing the total rate to 9% in some areas.
41. South Dakota: South Dakota imposes a state sales tax rate of 4.5%, with local taxes bringing the total rate to around 7.5%.
42. Tennessee: Tennessee’s state sales tax rate is 7%, with local taxes increasing the rate to over 9.75% in some areas.
43. Texas: Texas imposes a state sales tax rate of 6.25%, with local taxes bringing the total rate to around 8.25%.
44. Utah: Utah’s state sales tax rate is 4.85%, with local taxes bringing the total rate to around 8.75%.
45. Vermont: Vermont imposes a state sales tax rate of 6%, with local taxes bringing the total rate to around 7%.
46. Virginia: Virginia’s state sales tax rate is 4.3%, with local taxes bringing the total rate to 6%.
47. Washington: Washington imposes a state sales tax rate of 6.5%, with local taxes bringing the total rate to over 10% in some areas.
48. West Virginia: West Virginia’s state sales tax rate is 6%, with no local sales taxes.
49. Wisconsin: Wisconsin imposes a state sales tax rate of 5%, with local taxes bringing the total rate to 5.6%.
50. Wyoming: Wyoming’s state sales tax rate is 4%, with local taxes bringing the total rate to around 6%.

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Conclusion

Sales tax in the United States varies significantly from state to state, and even within states, due to the potential for local taxes.

It is essential for consumers and businesses to understand the sales tax rates applicable to their purchases and transactions, especially in states where the combined state and local rates can significantly impact the final cost.