Combined State and Average Local Sales Tax Rates
March 18, 2014
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.
Follow Scott on Twitter.
Was this page helpful to you?
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?Contribute to the Tax Foundation
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?Give Us Feedback