State and Local Sales Tax Rates as of January 1, 2014

State and Local Sales Tax Rates as of January 1, 2014 (Excerpt)

Tax Foundation
May 18, 2014

Key Findings

• 45 states collect statewide sales taxes.
• 38 states collect local sales taxes.
• The five states with the highest average combined state-local sales tax rates are Tennessee (9.45 percent), Arkansas (9.19 percent), Louisiana (8.89 percent), Washington (8.88 percent), and Oklahoma (8.72 percent).
• Virginia, Arkansas, Ohio, and Maine have recently raised sales tax rates.
• Arizona, Kansas, and the District of Columbia have recently cut sales tax rates.
• Sales taxes rates differ by states, but sales tax bases also impact how much revenue is collected from a tax and how the tax effects the economy.
• Differences in sales tax rates cause consumers to shop across borders or buy products online.

Retail sales taxes are one of the more transparent ways to collect tax revenue. While graduated income tax rates and brackets are complex and confusing to many taxpayers, the sales tax is easier to understand: people can reach into their pocket and see the rate printed on a receipt. Less known, however, are the local sales taxes collected in 38 states. These rates can be substantial, so a state with a moderate statewide sales tax rate could actually have a very high combined state-local rate compared to other states. Of course, sales taxes are just one part of an overall tax structure and should be considered in context. For example, Washington State has high sales taxes but no income tax; Oregon has no sales tax but high income taxes. While many factors influence business location and investment decisions, sales taxes are something within policymakers' control that can have immediate impacts.

State	State Tax Rate	Rank	Avg. Local Tax Rate (a)	Combined Tax Rate	Rank	Max Local
Alabama	4.00%	38	4.51%	8.51%	6	7.00%
Alaska	None	46	1.69%	1.69%	46	7.50%
Arizona	5.60%	28	2.57%	8.17%	9	7.125%
Arkansas	6.50%	9	2.69%	9.19%	2	5.50%
California (b)	7.50%	1	0.91%	8.41%	8	2.50%
Colorado	2.90%	45	4.49%	7.39%	15	7.10%
Connecticut	6.35%	11	None	6.35%	31
Delaware	None	46	None	None	47
Florida	6.00%	16	0.62%	6.62%	29	1.50%
Georgia	4.00%	38	2.97%	6.97%	23	4.00%
Hawaii (c)	4.00%	38	0.35%	4.35%	45	0.50%
Idaho	6.00%	16	0.03%	6.03%	36	2.50%
Illinois	6.25%	12	1.91%	8.16%	10	3.75%
Indiana	7.00%	2	None	7.00%	21
Iowa	6.00%	16	0.78%	6.78%	27	1.00%
Kansas	6.15%	15	2.00%	8.15%	12	3.50%
Kentucky	6.00%	16	None	6.00%	37
Louisiana	4.00%	38	4.89%	8.89%	3	7.00%
Maine	5.50%	29	None	5.50%	42
Maryland	6.00%	16	None	6.00%	37
Massachusetts	6.25%	12	None	6.25%	33
Michigan	6.00%	16	None	6.00%	37
Minnesota	6.875%	7	0.31%	7.19%	18	1.00%
Mississippi	7.00%	2	0.004%	7.00%	20	0.25%
Missouri	4.225%	37	3.36%	7.58%	14	5.45%
Montana (d)	None	46	None	None	47
Nebraska	5.50%	29	1.29%	6.79%	26	2.00%
Nevada	6.85%	8	1.08%	7.93%	13	1.25%
New Hampshire	None	46	None	None	47
New Jersey (e)	7.00%	2	-0.03%	6.97%	24
New Mexico (c)	5.125%	32	2.14%	7.26%	16	3.5625%
New York	4.00%	38	4.47%	8.47%	7	4.875%
North Carolina	4.75%	35	2.15%	6.90%	25	2.75%
North Dakota	5.00%	33	1.55%	6.55%	30	3.00%
Ohio	5.75%	27	1.36%	7.11%	19	2.25%
Oklahoma	4.50%	36	4.22%	8.72%	5	6.50%
Oregon	None	46	None	None	47
Pennsylvania	6.00%	16	0.34%	6.34%	32	2.00%
Rhode Island	7.00%	2	None	7.00%	21
South Carolina	6.00%	16	1.19%	7.19%	17	3.00%
South Dakota (c)	4.00%	38	1.83%	5.83%	40	2.00%
Tennessee	7.00%	2	2.45%	9.45%	1	2.75%
Texas	6.25%	12	1.90%	8.15%	11	2.00%
Utah (b)	5.95%	26	0.73%	6.68%	28	2.00%
Vermont	6.00%	16	0.14%	6.14%	34	1.00%
Virginia (b)	5.30%	31	0.33%	5.63%	41	0.70%
Washington	6.50%	9	2.38%	8.88%	4	3.10%
West Virginia	6.00%	16	0.07%	6.07%	35	1.00%
Wisconsin	5.00%	33	0.43%	5.43%	44	1.50%
Wyoming	4.00%	38	1.49%	5.49%	43	2.00%
D.C.	5.75%	(27)	None	5.75%	(41)

(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%), Utah (1.25%), Virginia (1%), we include these in their state sales tax.
(c) The sales taxes in Hawaii, New Mexico and South Dakota have broad bases that include many services.
(d) Due to data limitations, table does not include sales taxes in local resort areas in Montana.
(e) Salem County is not subject to the statewide sales tax rate and collects a local rate of 3.5%. New Jersey’s average local score is represented as a negative.
Sources: Sales Tax Clearinghouse, Tax Foundation calculations, State Revenue Department websites

Taxes Data State and County (Tax Foundation):
http://interactive.taxfoundation.org/propertytax/

Taxes By State and County (Tax-Rates.org):
http://www.tax-rates.org/taxtables/property-tax-by-state