Table 1 provides a full state-by-state listing of state and local sales tax rates. This report provides a population-weighted average of local sales taxes as of Januin an attempt to give a sense of the average local rate for each state. These rates can be substantial, so a state with a moderate statewide sales tax rate could actually have a very high combined state and local rate compared to other states. In addition to state-level sales taxes, consumers also face local-level sales taxes in 38 states. While graduated income tax rates and brackets are complex and confusing to many taxpayers, sales taxes are easier to understand consumers can see their tax burden printed directly on their receipts. Retail sales taxes are one of the more transparent ways to collect tax revenue. Sales tax rate differentials can induce consumers to shop across borders or buy products online.Sales tax rates differ by state, but sales tax bases also impact how much revenue is collected from a tax and how the tax affects the economy.The five states with the highest average combined state and local sales tax rates are Tennessee (9.46 percent), Arkansas (9.30 percent), Louisiana (9.0 percent), Alabama (8.97 percent), and Washington (8.90 percent).Local sales taxes are collected in 38 states. ![]() Forty-five states and the District of Columbia collect statewide sales taxes.
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