Sales Tax Rates: A State-by-State Comparison for 2026
How US Sales Tax Works
Sales tax is a consumption tax imposed by states and local governments on the sale of goods and certain services. There is no federal sales tax — each state sets its own rate and rules. Local governments (cities and counties) often add their own rates on top of the state rate, meaning combined rates can vary block by block within the same state.
States With No Sales Tax
Five states have no state-level sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. However, Alaska allows local governments to impose their own sales tax, so some cities in Alaska do collect sales tax.
Highest Combined Sales Tax States
| State | State Rate | Avg Local Rate | Combined |
|---|---|---|---|
| Tennessee | 7.00% | 2.47% | 9.55% |
| Louisiana | 4.45% | 5.10% | 9.55% |
| Arkansas | 6.50% | 3.34% | 9.24% |
| Washington | 6.50% | 2.38% | 9.29% |
| Alabama | 4.00% | 5.22% | 9.25% |
| Oklahoma | 4.50% | 4.50% | 9.00% |
How Local Rates Work
Local rates can significantly increase your total sales tax. For example, California's base state rate is 7.25%, but combined rates in Los Angeles County reach 10.25%. This means the same item can cost different amounts in different cities within the same state.
Common Sales Tax Exemptions
Most states exempt prescription drugs from sales tax. Groceries are exempt in 31 states, but some states like Alabama and Mississippi tax groceries at a reduced rate. Clothing is exempt in several states including New York, Pennsylvania, and Minnesota (under certain thresholds).
Online Shopping and Sales Tax
Since the 2018 Supreme Court decision in South Dakota v. Wayfair, states can require online retailers to collect sales tax even if they have no physical presence in the state. Each state sets its own economic nexus threshold — typically $100,000 in sales or 200 transactions in the state. Use our sales tax calculator to estimate your total tax for any purchase.
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