Key takeaways
- Sales tax rates vary widely: State rates range from 0% to over 7%, with local taxes pushing combined rates as high as 16.75% in California.
- Key 2025 updates: Louisiana increased its rate to 5% and expanded tax to digital goods, while Kansas eliminated food tax and Alaska removed its transaction threshold
- Remote seller changes: States like Illinois now use destination-based sourcing, affecting how out-of-state sellers calculate and remit sales tax.
Sales tax rates across the United States can vary significantly, reflecting each state's fiscal policies and economic strategies. This guide provides an updated breakdown of sales tax rates by state, along with key changes impacting businesses in 2025.
Overview of state sales tax rates
State sales tax rates range from 0% to over 7%, with local jurisdictions often imposing additional taxes that can substantially increase the total sales tax burden. For instance, while Colorado's state sales tax rate is 2.9%, local taxes can raise the combined rate to as high as 11.2%. Conversely, some states, such as Delaware, Montana, New Hampshire, and Oregon, do not impose a statewide sales tax.
Recent sales tax changes
As of January 1, 2025, several notable changes to US sales tax policies have been implemented across various states:
State sales tax rate adjustments:
- Louisiana: The state sales tax rate has increased from 4.45% to 5%.
- Kansas: The state sales tax rate on unprepared food has been reduced from 2% to 0%. However, local sales taxes may still apply to these items.
Changes in the taxability of products:
- Louisiana: Sales and use tax now applies to digital products, including audiovisual works, audio works, books, codes, applications and games, and periodicals and discussion forums.
- Nevada: Diapers for both adults and children are now exempt from sales and use tax.
Remote seller tax modifications:
- Alaska: The state has eliminated its 200-transaction economic nexus threshold, potentially affecting remote sellers operating within the state.
- Illinois: Out-of-state sellers with a physical presence in Illinois, as well as in-state sellers, are now required to use destination sourcing when shipping goods from outside of Illinois. This means the use tax rate is based on the Illinois delivery address.
State-by-state sales tax rates
Here is a summary of the state sales tax rates as of 2025:
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Frequently asked questions
Which states changed their sales tax rates in 2025?
Louisiana increased its state rate from 4.45% to 5%, while Kansas reduced the sales tax on unprepared food to 0%. Local taxes may still apply in some areas.
Are there new rules for digital or exempt products?
Yes. Louisiana now taxes digital goods like e-books and apps, while Nevada has exempted diapers for adults and children from sales and use tax.
What’s new for remote sellers?
Alaska removed its 200-transaction nexus threshold, and Illinois introduced destination-based sourcing, meaning tax is now applied based on the customer’s delivery location.
