Sales Tax by State 2026: Highest, Lowest and Average Rates

In short: Sales tax by state ranges from 0% to just over 10% once local taxes are added. As of July 1, 2026, Louisiana has the highest average combined rate (10.13%), followed by Tennessee, Washington, Arkansas and Alabama. Delaware, Montana, New Hampshire and Oregon charge no sales tax at all, and Alaska has the lowest rate among states with any sales tax (1.82%). The population-weighted average sales tax in the US is 7.53%.

Updated October 2026: We re-checked all 51 rows against the Tax Foundation's midyear 2026 report, its latest edition, and added an at-a-glance summary, maximum local rates and common rate mistakes.

Sales tax by state at a glance

These are the key figures from the Tax Foundation's midyear 2026 report (rates as of July 1, 2026).

Sales tax in the United States is not one tax. There is no national sales tax. Instead, 45 states and DC charge a state sales tax, and 38 states let cities, counties and special districts add their own. That gives thousands of rates across the country.

This guide lists every state's rate, shows which states are highest and lowest, and explains what the numbers mean if you sell to US customers from another state or country.

What is the sales tax rate in each state?

The table below shows sales tax by state for all 50 states and the District of Columbia. It uses the Tax Foundation's State and Local Sales Tax Rates, Midyear 2026 report, with rates as of July 1, 2026.

• State rate is the statewide rate set by the legislature.
• Average local rate is the population-weighted average of city, county and district rates.
• Average combined rate is the two added together. Real rates at a given address can be higher or lower.
• Combined rank runs from 1 (highest) to 47 (the four states with no sales tax share last place). DC is shown in brackets because the Tax Foundation does not count it in the state ranking.

Sales tax rates by state as of July 1, 2026 (source: Tax Foundation, midyear 2026)

A few notes on the data. California, Utah and Virginia include a mandatory statewide local add-on in the state rate. New Jersey shows a negative local average because some areas, such as Salem County, collect a reduced rate. Averages are useful for comparison, but you must charge the rate for the exact delivery address.

What is the average sales tax in the US?

The average sales tax in the US is 7.53%, weighted by population, according to the Tax Foundation's midyear 2026 report. This figure combines state and average local rates.

Most states sit close to that average. About half of the states have a combined rate between 6% and 8%. The average hides large gaps, though. A buyer in Louisiana pays more than double the rate a buyer in Hawaii pays.

What state has the highest sales tax?

Louisiana has the highest combined sales tax rate in the US at 10.13%. These are the ten highest combined rates as of July 1, 2026:

1. Louisiana – 10.13%
2. Tennessee – 9.61%
3. Washington – 9.57%
4. Arkansas – 9.48%
5. Alabama – 9.46%
6. Oklahoma – 9.06%
7. California – 9.03%
8. Illinois – 8.98%
9. Kansas – 8.71%
10. New York – 8.54%

High combined rates come from two different patterns. Tennessee, Washington and Arkansas have high state rates of 6.5% to 7%. Louisiana, Alabama and Oklahoma have moderate state rates but heavy local taxes. In Alabama, the average local rate (5.46%) is higher than the 4% state rate.

Which state has the highest state sales tax rate?

California has the highest state sales tax rate at 7.25%. This includes a 1.25% statewide local add-on. Indiana, Mississippi, Rhode Island and Tennessee follow at 7%. District taxes in many California areas push the rate at checkout higher, as the California Department of Tax and Fee Administration explains.

Rates also change. Louisiana raised its state sales tax rate to 5% from January 1, 2025, as confirmed by the Louisiana Department of Revenue. Parish taxes still apply on top.

What state has the lowest sales tax?

Among states that charge sales tax, Alaska has the lowest combined rate at 1.82%, followed by Hawaii at 4.50%. If you count states with no sales tax at all, Delaware, Montana, New Hampshire and Oregon share the lowest rate: 0%. Alaska has no state sales tax, so its rate is local only. These are the states with the lowest sales tax once local taxes are included:

1. Alaska – 1.82% (local taxes only)
2. Hawaii – 4.50%
3. Wyoming – 5.39%
4. Maine – 5.50%
5. Wisconsin – 5.72%
6. Virginia – 5.77%
7. Kentucky, Maryland and Michigan – 6.00% (DC is also 6.00%)

Several low-rate states, such as Maine, Kentucky, Maryland and Michigan, have no local sales taxes. That makes them simpler for sellers, because one rate applies statewide.

Hawaii needs a caveat. Its general excise tax is charged to the business, not the buyer, and it covers most services too. So a low headline rate does not always mean a light tax load.

Which state has the lowest state sales tax rate?

Colorado has the lowest state sales tax rate at 2.9%, among states that charge one. Yet its combined rate averages 7.89%. Cities, counties and special districts add their own taxes, and the highest local rate reaches 9.10%.

This is why the lowest state rate and the lowest rate at checkout are different questions. Always check the combined rate for the exact delivery address.

Which states have no state sales tax?

Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. These are often called the NOMAD states. Four of them have no local sales tax either, so their combined rate is 0%.

Alaska is the exception. Many Alaskan boroughs and cities levy local sales taxes, with rates of up to 7.85%. Many of them coordinate collection from remote sellers through the Alaska Remote Seller Sales Tax Commission.

These states still raise money in other ways. Delaware and Oregon tax businesses on gross receipts. New Hampshire and Montana rely more on property tax and other levies. For past rate news, see our May 2025 US sales tax updates.

Where are the highest local sales tax rates?

Colorado has the highest maximum local rate, at 9.10% on top of its 2.9% state rate. Local rates stack in layers: a state rate, then county, city and special district rates.

The table shows the states with the highest maximum local rates, from the Tax Foundation's midyear 2026 data.

A real example shows how the state and county layers add up. North Carolina's state rate is 4.75%. From July 1, 2026, Mecklenburg County added a 1% transit tax that voters approved on November 4, 2025. The combined rate there is now 8.25%, according to the North Carolina Department of Revenue. So local layers add 3.5 points to the state rate.

By contrast, eight states with a sales tax have no local sales tax: Connecticut, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan and Rhode Island. DC has none either. In these places, the state rate is the rate at checkout.

Why do combined sales tax rates vary so much?

Combined rates vary mainly because of local sales taxes. In 38 states, local governments can add their own rate on top of the state rate. They use the money for schools, roads, transit and public safety.

Other factors matter too:

• Local autonomy. In "home rule" states such as Colorado, Louisiana and Alabama, local jurisdictions can set their own rates and even run their own tax administration.
• Other taxes in the state. States without a broad individual income tax, such as Tennessee, Washington, Texas, Florida and Nevada, rely more on sales tax. States with high income tax or corporate income tax can keep sales tax lower.
• Business taxes. Some states raise revenue through a gross receipts tax or franchise tax instead. Washington's business and occupation tax and the Texas franchise tax are examples.
• Tax base. States tax different things. Hawaii, New Mexico and South Dakota tax many business services. Others exempt groceries or clothing, so a lower rate on a broader base can raise as much as a higher rate on a narrow one.

Local rates also change during the year. Between January and July 2026, combined rates rose in North Carolina, Georgia, Washington, California and Vermont. Wyoming was the only state where the combined rate fell. No statewide rate changed in that period.

What do sales tax rates by state mean for remote sellers?

The rate only matters once you have to collect sales tax in a state. Remote sellers must collect once they have nexus, and most do so through economic nexus.

Since the 2018 South Dakota v. Wayfair decision, every state with a sales tax uses economic nexus. You create nexus when your sales into the state pass a threshold, even without an office or staff there. A common threshold is $100,000 in sales a year, but some states set it higher. Texas, for example, uses $500,000 in total Texas revenue over the previous 12 months. Check each state in our guide to economic nexus by state.

Once you have nexus, follow these steps for each sale:

1. Confirm the state requires you to collect. Check physical presence, such as inventory in a warehouse, and economic nexus thresholds.
2. Check whether a marketplace collects for you. On platforms such as Amazon or Etsy, the marketplace facilitator usually collects and remits tax on those sales.
3. Find the state base rate. Each state revenue department publishes its current rate.
4. Add local and district rates. Most states tax based on the delivery address, so use the state's official rate lookup for the full address.
5. Check the effective date. Local rates change during the year, so use the rate in force on the date of sale.
6. Keep exemption records. If a buyer claims an exemption, keep a valid resale certificate on file.

Worked example: A $200 order shipped to California carries at least $14.50 in tax at the 7.25% base rate. Any district tax for that address is added on top.

High-rate states are not always the hardest. Home-rule states with many local rates take more work than a flat-rate state such as Maine or Kentucky. If you sell from outside the US, our guide to US sales tax for foreign sellers covers registration and filing.

Taxually's LumaTax handles US sales tax registration and filing for multi-state sellers. If you sell in both the US and Europe, see our VAT and US sales tax compliance guide. To discuss your situation, book a free call with one of our sales tax experts.

What mistakes do sellers make with state sales tax rates?

The most common mistake is charging the state rate alone. Here are the errors we see most often:

• Using the state rate only. Colorado's state rate is 2.9%, but its average combined rate is 7.89%.
• Using a ZIP code or state average. One ZIP code can cover several cities and districts. Use the full delivery address.
• Missing mid-year changes. Combined rates rose in North Carolina, Georgia, Washington, California and Vermont in the first half of 2026, though no state rate changed.
• Assuming a no-sales-tax state means no tax. Alaska has no state sales tax, but local rates reach 7.85%.
• Treating every state's tax the same way. Hawaii's general excise tax is a tax on the business, and it covers most services.

For what changed this year, see our round-up of US sales tax changes in 2026.

This article is general information, not tax or legal advice. Sales tax rules change often and depend on your facts.

Sources

• Tax Foundation – State and Local Sales Tax Rates, Midyear 2026 (July 2026)
• Tax Foundation – State and Local Sales Tax Rates, 2026
• California Department of Tax and Fee Administration – Sales and use tax rates
• Louisiana Department of Revenue – RIB 25-007, State Sales Tax Rate
• North Carolina Department of Revenue – Mecklenburg County additional 1% sales tax
• Texas Comptroller – Remote sellers

How Taxually handles this

Taxually’s LumaTax runs a nexus analysis on your sales, helps you register in the states where you must collect, and prepares and files multi-state sales tax returns, including Canadian GST/HST. LumaTax is currently available to enterprises and accounting firms. For the full workflow, read how to automate US sales tax filing in every state.

Related guides

• Sales And Use Tax Compliance Tips For Firms
• Offering Virtual SUT Advisory Services
• A Beginner’s Guide to Economic Nexus