Fiscal Fact No. 239
Introduction
General sales taxes levied by state, county and city governments in the United States vary greatly, even among major metropolitan areas. For purposes of this analysis, “major metropolitan areas” are those with populations greater than 200,000 individuals, of which there are 107 in the United States.
The 25 metropolitan areas with the highest combined sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. rates—state rate plus county rate plus city rate—are shown in Table 1. Two Alabama cities, Montgomery and Birmingham, have the highest combined sales taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. rates in the nation. Until recently Chicago had that distinction, but Cook County lowered its rate by 0.5%, effective July 1, 2010.
Unsurprisingly, none of the highest-taxing cities are located in the five states that levy no state-level tax: Alaska, Delaware, Montana, New Hampshire and Oregon. But some of these high-taxing cities have a zero rate at either the county or city level. In four cities—St. Louis, Memphis, Nashville and New York City—there is no county-level sales tax; and in eight cities—Oakland, Fremont, Seattle, San Francisco, San Jose, New Orleans, Baton Rouge, and Fresno—there’s no city-level tax.
|
Table 1 |
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|
Geographic Area |
Sales Tax Rate |
Rank |
||||
|
Locality |
State |
State |
County |
City |
Total |
|
|
Birmingham |
AL |
4.000% |
2.000% |
4.000% |
10.000% |
1 |
|
Montgomery |
AL |
4.000% |
2.500% |
3.500% |
10.000% |
1 |
|
Long Beach |
CA |
7.250% |
2.000% |
0.500% |
9.750% |
3 |
|
Los Angeles |
CA |
7.250% |
2.000% |
0.500% |
9.750% |
3 |
|
Oakland |
CA |
7.250% |
2.500% |
0.000% |
9.750% |
3 |
|
Fremont |
CA |
7.250% |
2.500% |
0.000% |
9.750% |
3 |
|
Chicago |
IL |
6.250% |
2.250% |
1.250% |
9.750% |
3 |
|
Glendale |
AZ |
6.600% |
0.800% |
2.200% |
9.600% |
8 |
|
Seattle |
WA |
6.500% |
3.000% |
0.000% |
9.500% |
9 |
|
San Francisco |
CA |
7.250% |
2.250% |
0.000% |
9.500% |
9 |
|
St. Louis |
MO |
4.225% |
0.000% |
5.266% |
9.491% |
11 |
|
Phoenix |
AZ |
6.600% |
0.800% |
2.000% |
9.400% |
12 |
|
Memphis |
TN |
7.000% |
0.000% |
2.250% |
9.250% |
13 |
|
Nashville |
TN |
7.000% |
0.000% |
2.250% |
9.250% |
13 |
|
San Jose |
CA |
7.250% |
2.000% |
0.000% |
9.250% |
13 |
|
Tucson |
AZ |
6.600% |
0.600% |
2.000% |
9.200% |
16 |
|
Mesa |
AZ |
6.600% |
0.800% |
1.750% |
9.150% |
17 |
|
Scottsdale |
AZ |
6.600% |
0.800% |
1.650% |
9.050% |
18 |
|
Stockton |
CA |
7.250% |
1.500% |
0.250% |
9.000% |
19 |
|
New Orleans |
LA |
4.000% |
5.000% |
0.000% |
9.000% |
19 |
|
Baton Rouge |
LA |
4.000% |
5.000% |
0.000% |
9.000% |
19 |
|
Fresno |
CA |
7.250% |
1.725% |
0.000% |
8.975% |
22 |
|
Chandler |
AZ |
6.600% |
0.800% |
1.500% |
8.900% |
23 |
|
Gilbert |
AZ |
6.600% |
0.800% |
1.500% |
8.900% |
23 |
|
New York City |
NY |
4.000% |
0.000% |
4.875% |
8.875% |
25 |
|
Source: Sales Tax Clearinghouse, Census Bureau, and Tax Foundation |
Although many of the most populous cities do rank in the highest-taxing 25 cities listed in Table 1, there are exceptions. The most populous city, New York City, barely squeezed into the top-taxing cities with an 8.875% combined tax rate, ranking 25th highest nationwide. Houston, Philadelphia, Denver and several other cities among the nation’s largest are making do with even lower combined sales tax rates. Table 2 shows the state, county, and city sales tax rates in the 25 most populous cities.
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Table 2 |
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|
Metropolitan Area |
Sales Tax Rates |
||||
|
City |
State |
State |
County |
City |
Total |
|
New York City |
NY |
4.000% |
0.000% |
4.875% |
8.875% |
|
Los Angeles |
CA |
7.250% |
2.000% |
0.500% |
9.750% |
|
Chicago |
IL |
6.250% |
2.250% |
1.250% |
9.750% |
|
Houston |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
|
Phoenix |
AZ |
6.600% |
0.800% |
2.000% |
9.400% |
|
Philadelphia |
PA |
6.000% |
0.000% |
2.000% |
8.000% |
|
San Antonio |
TX |
6.250% |
0.750% |
1.125% |
8.125% |
|
San Diego |
CA |
7.250% |
1.500% |
0.000% |
8.750% |
|
Dallas |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
|
San Jose |
CA |
7.250% |
2.000% |
0.000% |
9.250% |
|
Detroit |
MI |
6.000% |
0.000% |
0.000% |
6.000% |
|
San Francisco |
CA |
7.250% |
2.250% |
0.000% |
9.500% |
|
Jacksonville |
FL |
6.000% |
1.000% |
0.000% |
7.000% |
|
Indianapolis |
IN |
7.000% |
0.000% |
0.000% |
7.000% |
|
Austin |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
|
Columbus |
OH |
5.500% |
1.250% |
0.000% |
6.750% |
|
Fort Worth |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
|
Charlotte |
NC |
5.750% |
2.500% |
0.000% |
8.250% |
|
Memphis |
TN |
7.000% |
0.000% |
2.250% |
9.250% |
|
Boston |
MA |
6.250% |
0.000% |
0.000% |
6.250% |
|
Baltimore |
MD |
6.000% |
0.000% |
0.000% |
6.000% |
|
El Paso |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
|
Seattle |
WA |
6.500% |
3.000% |
0.000% |
9.500% |
|
Denver |
CO |
2.900% |
1.200% |
3.620% |
7.720% |
|
Nashville |
TN |
7.000% |
0.000% |
2.250% |
9.250% |
|
Source: Sales Tax Clearinghouse, Census Bureau, and Tax Foundation |
Sales Tax Bases Are Another Story
These tables of rates do not take into account state, county or city exemptions of various items from sales taxation, nor do they account for selective lower or higher rates. For instance, some states tax groceries at the general sales tax rate, some at a reduced rate, and some grant an exemption. But even among those governments that grant a total exemption, they draw up long lists of grocery items that they deem worthy and unworthy of the exemption, and those lists change depending on the shifting opinions of state and local legislators. And groceries are just one of many hundreds of retail and wholesale goods and services on which governments decide whether to impose sales tax.
The Tourism Factor
Sales taxes are a staple of state and local revenues. For the larger cities listed here, sales taxes also affect visitors and tourists. Florida and Nevada are renowned for imposing no wage tax on their residents, choosing instead to fund many of their government programs with sales tax revenue that often comes from tourists. Large cities have an increased demand for government services (roads, police, etc.) and a higher rate of tourism, so it should not be particularly surprising that they tend to have higher reliance on the sales tax.
Rate Your City’s Sales Tax on a Scale of Zero to Ten
The combined sales tax rate varies from zero to 10 percent in the 107 U.S. cities with a population above 200,000. Those cities account for around 62 million residents or one-fifth of the U.S. population (see Table 3).
Birmingham and Montgomery, Alabama, have the dubious honor of levying the highest combined sales tax rate, 10%; Anchorage, Alaska, and Portland, Oregon, are the only large cities that levy a zero sales tax at all levels of state and local government.
The county level rates vary from 5% in New Orleans and Baton Rouge, Louisiana, to 0% in 28 of the 107 cities. The city-level tax has about the same rate of fluctuation, from 5.266% in St. Louis, Missouri, to 0% in 57 of the 107 cities.
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Table 3 |
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|
Geographic Area |
Sales Tax |
Rank |
||||
|
Locality |
State |
State |
County |
City |
Total |
|
|
Akron |
OH |
5.500% |
1.000% |
0.000% |
6.500% |
88 |
|
Albuquerque |
NM |
5.125% |
0.938% |
0.937% |
7.000% |
85 |
|
Anaheim |
CA |
7.250% |
1.500% |
0.000% |
8.750% |
26 |
|
Anchorage |
AK |
0.000% |
0.000% |
0.000% |
0.000% |
106 |
|
Arlington |
TX |
6.250% |
0.000% |
1.750% |
8.000% |
57 |
|
Arlington |
VA |
4.000% |
1.000% |
0.000% |
5.000% |
100 |
|
Atlanta |
GA |
4.000% |
3.000% |
1.000% |
8.000% |
57 |
|
Aurora |
CO |
2.900% |
1.450% |
3.750% |
8.100% |
53 |
|
Austin |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
43 |
|
Bakersfield |
CA |
7.250% |
1.000% |
0.000% |
8.250% |
43 |
|
Baltimore |
MD |
6.000% |
0.000% |
0.000% |
6.000% |
92 |
|
Baton Rouge |
LA |
4.000% |
5.000% |
0.000% |
9.000% |
19 |
|
Birmingham |
AL |
4.000% |
2.000% |
4.000% |
10.000% |
1 |
|
Boise City |
ID |
6.000% |
0.000% |
0.000% |
6.000% |
92 |
|
Boston |
MA |
6.250% |
0.000% |
0.000% |
6.250% |
91 |
|
Buffalo |
NY |
4.000% |
4.750% |
0.000% |
8.750% |
26 |
|
Chandler |
AZ |
6.600% |
0.800% |
1.500% |
8.900% |
23 |
|
Charlotte |
NC |
5.750% |
2.500% |
0.000% |
8.250% |
39 |
|
Chesapeake |
VA |
4.000% |
0.000% |
1.000% |
5.000% |
100 |
|
Chicago |
IL |
6.250% |
2.250% |
1.250% |
9.750% |
7 |
|
Chula Vista |
CA |
7.250% |
1.500% |
0.000% |
8.750% |
26 |
|
Cincinnati |
OH |
5.500% |
1.000% |
0.000% |
6.500% |
88 |
|
Cleveland |
OH |
5.500% |
2.250% |
0.000% |
7.750% |
62 |
|
Colorado Springs |
CO |
2.900% |
2.000% |
2.500% |
7.400% |
71 |
|
Columbus |
OH |
5.500% |
1.250% |
0.000% |
6.750% |
86 |
|
Corpus Christi |
TX |
6.250% |
0.625% |
1.375% |
8.250% |
39 |
|
Dallas |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
43 |
|
Denver |
CO |
2.900% |
1.200% |
3.620% |
7.720% |
69 |
|
Detroit |
MI |
6.000% |
0.000% |
0.000% |
6.000% |
92 |
|
Durham |
NC |
5.750% |
2.000% |
0.000% |
7.750% |
62 |
|
El Paso |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
43 |
|
Fort Wayne |
IN |
7.000% |
0.000% |
0.000% |
7.000% |
73 |
|
Fort Worth |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
43 |
|
Fremont |
CA |
7.250% |
2.500% |
0.000% |
9.750% |
3 |
|
Fresno |
CA |
7.250% |
1.725% |
0.000% |
8.975% |
22 |
|
Garland |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
43 |
|
Gilbert |
AZ |
6.600% |
0.800% |
1.500% |
8.900% |
23 |
|
Glendale |
AZ |
6.600% |
0.800% |
2.200% |
9.600% |
8 |
|
Greensboro |
NC |
5.750% |
2.000% |
0.000% |
7.750% |
62 |
|
Henderson |
NV |
6.850% |
1.250% |
0.000% |
8.100% |
53 |
|
Hialeah |
FL |
6.000% |
1.000% |
0.000% |
7.000% |
79 |
|
Honolulu |
HI |
4.000% |
0.000% |
0.500% |
4.500% |
105 |
|
Houston |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
43 |
|
Indianapolis |
IN |
7.000% |
0.000% |
0.000% |
7.000% |
73 |
|
Irvine |
CA |
7.250% |
1.500% |
0.000% |
8.750% |
26 |
|
Irving |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
43 |
|
Jacksonville |
FL |
6.000% |
1.000% |
0.000% |
7.000% |
79 |
|
Jersey City |
NJ |
7.000% |
0.000% |
0.000% |
7.000% |
73 |
|
Kansas City |
MO |
4.225% |
1.125% |
2.375% |
7.725% |
67 |
|
Laredo |
TX |
6.250% |
0.750% |
1.250% |
8.250% |
39 |
|
Las Vegas |
NV |
6.850% |
1.250% |
0.000% |
8.100% |
53 |
|
Lexington |
KY |
6.000% |
0.000% |
0.000% |
6.000% |
92 |
|
Lincoln |
NE |
5.500% |
0.000% |
1.500% |
7.000% |
73 |
|
Long Beach |
CA |
7.250% |
2.000% |
0.500% |
9.750% |
3 |
|
Los Angeles |
CA |
7.250% |
2.000% |
0.500% |
9.750% |
3 |
|
Louisville |
KY |
6.000% |
0.000% |
0.000% |
6.000% |
92 |
|
Lubbock |
TX |
6.250% |
0.500% |
1.500% |
8.250% |
39 |
|
Madison |
WI |
5.000% |
0.500% |
0.000% |
5.500% |
99 |
|
Memphis |
TN |
7.000% |
0.000% |
2.250% |
9.250% |
13 |
|
Mesa |
AZ |
6.600% |
0.800% |
1.750% |
9.150% |
17 |
|
Miami |
FL |
6.000% |
1.000% |
0.000% |
7.000% |
79 |
|
Milwaukee |
WI |
5.000% |
0.600% |
0.000% |
5.600% |
98 |
|
Minneapolis |
MN |
6.875% |
0.150% |
0.750% |
7.775% |
61 |
|
Modesto |
CA |
7.250% |
1.125% |
0.000% |
8.375% |
36 |
|
Montgomery |
AL |
4.000% |
2.500% |
3.500% |
10.000% |
1 |
|
Nashville |
TN |
7.000% |
0.000% |
2.250% |
9.250% |
13 |
|
New Orleans |
LA |
4.000% |
5.000% |
0.000% |
9.000% |
19 |
|
New York City |
NY |
4.000% |
0.000% |
4.875% |
8.875% |
25 |
|
Newark |
NJ |
7.000% |
0.000% |
0.000% |
7.000% |
73 |
|
Norfolk |
VA |
4.000% |
0.000% |
1.000% |
5.000% |
100 |
|
North Las Vegas |
NV |
6.850% |
1.250% |
0.000% |
8.100% |
53 |
|
Oakland |
CA |
7.250% |
2.500% |
0.000% |
9.750% |
3 |
|
Oklahoma City |
OK |
4.500% |
0.000% |
3.875% |
8.375% |
36 |
|
Omaha |
NE |
5.500% |
0.000% |
1.500% |
7.000% |
73 |
|
Orlando |
FL |
6.000% |
0.500% |
0.000% |
6.500% |
88 |
|
Philadelphia |
PA |
6.000% |
0.000% |
2.000% |
8.000% |
57 |
|
Phoenix |
AZ |
6.600% |
0.800% |
2.000% |
9.400% |
12 |
|
Pittsburgh |
PA |
6.000% |
1.000% |
0.000% |
7.000% |
79 |
|
Plano |
TX |
6.250% |
1.000% |
1.000% |
8.250% |
43 |
|
Portland |
OR |
0.000% |
0.000% |
0.000% |
0.000% |
106 |
|
Raleigh |
NC |
5.750% |
2.000% |
0.000% |
7.750% |
62 |
|
Reno |
NV |
6.850% |
0.875% |
0.000% |
7.725% |
67 |
|
Richmond |
VA |
4.000% |
0.000% |
1.000% |
5.000% |
100 |
|
Riverside |
CA |
7.250% |
1.500% |
0.000% |
8.750% |
26 |
|
Rochester |
NY |
4.000% |
4.000% |
0.000% |
8.000% |
57 |
|
Sacramento |
CA |
7.250% |
1.500% |
0.000% |
8.750% |
26 |
|
San Antonio |
TX |
6.250% |
0.750% |
1.125% |
8.125% |
52 |
|
San Diego |
CA |
7.250% |
1.500% |
0.000% |
8.750% |
26 |
|
San Francisco |
CA |
7.250% |
2.250% |
0.000% |
9.500% |
9 |
|
San Jose |
CA |
7.250% |
2.000% |
0.000% |
9.250% |
13 |
|
Santa Ana |
CA |
7.250% |
1.500% |
0.000% |
8.750% |
26 |
|
Scottsdale |
AZ |
6.600% |
0.800% |
1.650% |
9.050% |
18 |
|
Seattle |
WA |
6.500% |
3.000% |
0.000% |
9.500% |
9 |
|
Spokane |
WA |
6.500% |
1.600% |
0.600% |
8.700% |
34 |
|
St. Louis |
MO |
4.225% |
0.000% |
5.266% |
9.491% |
11 |
|
St. Paul |
MN |
6.875% |
0.000% |
0.750% |
7.625% |
70 |
|
St. Petersburg |
FL |
6.000% |
1.000% |
0.000% |
7.000% |
79 |
|
Stockton |
CA |
7.250% |
1.500% |
0.250% |
9.000% |
19 |
|
Tampa |
FL |
6.000% |
1.000% |
0.000% |
7.000% |
79 |
|
Toledo |
OH |
5.500% |
1.250% |
0.000% |
6.750% |
86 |
|
Tucson |
AZ |
6.600% |
0.600% |
2.000% |
9.200% |
16 |
|
Tulsa |
OK |
4.500% |
1.017% |
3.000% |
8.517% |
35 |
|
Virginia Beach |
VA |
4.000% |
0.000% |
1.000% |
5.000% |
100 |
|
Washington |
DC |
6.000% |
0.000% |
0.000% |
6.000% |
92 |
|
Wichita |
KS |
6.300% |
1.000% |
0.000% |
7.300% |
72 |
|
Winston-Salem |
NC |
5.750% |
2.000% |
0.000% |
7.750% |
62 |
|
Yonkers |
NY |
4.000% |
1.375% |
3.000% |
8.375% |
36 |
|
Source: Sales Tax Clearinghouse, Census Bureau, and Tax Foundation |