There are five basic legal forms of business structures found in the United States: C corporations, S corporations, sole proprietorships, partnerships, and Limited Liability Companies (LLCs). In order to understand...
- Combined State and Average Local Sales Tax Rates
Combined State and Average Local Sales Tax Rates
This week's map shows the state sales tax rate, plus the average local rate, for each state as of January 1, 2014. This data comes from a new sales tax report we released today which will include each state’s maximum and average local sales tax rates, as well as each state sales tax rate.
Tennessee has the highest average combined rate at 9.45%, and is followed closely by Arkansas (9.19%) and Louisiana (8.89%). On the other end of the spectrum are states with no sales taxes: Oregon, Delaware, and New Hampshire.
One thing that is important to remember here is that state and local tax rates are only part of the total sales tax story. Equally important are sales tax bases—what the tax applies to—which can have a palpable impact on how much the tax collects in revenue and how the tax effects the economy. In this regard, Hawaii is generally considered to have the broadest sales tax rate, as their “General Excise Tax” taxes many products multiple times in the production chain as opposed to just one time at the point of final consumption.
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The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.