State by State Sales Tax Summary

The issue of sales tax is becoming a hot topic. Primarily the interest is driven by economics. States are loosing sales tax revenue due to the tremendous growth of online sales from out of state merchants. Here is a summary by state of general sales tax information. Additionally if you click on the state name you can link to that state government's relevant website.

Alabama-4% statewide tax which local cities can add on to up to a total rate of 10%.

Alaska-No statewide sales tax; however, local cities can assess up to 7%. Many of them do.

Arizona-A tax rate of 6.3% on gross receipts of merchants. While not technically a sales tax, merchants can pass on the tax to customers and most do.

Arkansas-Statewide tax of 1% to 10% depending on category of product. 6% is the general merchandise rate. Cities and counties can add on local option tax to bring the rate as high as 12%. Arkansas does have a number of exemptions and lower tax rates on groceries.

California-8.25% Statewide tax rate. Cities, counties, service entities and transportation districts can increase the local rate up to 10.25%.

Colorado-The statewide rate is 2.9%. Cities and counties can add on additional tax and typically bump the rate up to 8%.

Connecticut-Statewide 6% tax with no additional local tax.

Delaware-No state sales tax; however, there is a gross receipts tax of around 1-2% on most businesses sales.

Florida-6% statewide sales tax with counties allowed to add up to another 1.5%.

Georgia-4% statewide with counties allowed to add another 3% in 1% increments.

Hawaii-Technically Hawaii has no sales tax. They do have a 4-5% general excise tax that is charged on just about every type of business transaction you can imagine and is in fact broader than the sales tax application in most states. You better believe the tax is built into the price you pay in Hawaii.

Idaho-6% state sales tax, cities and counties can add on up to 3% local tax, although only 10 municipalities and one county do so.

Illinois-6.25% sales tax rate, but local options can push the total rate up as high as 11.5%.

Indiana-7% statewide rate, most municipalities add 1-2% sales tax on food and beverage purchases in restaurants.

Iowa-6% statewide rate with an additional 1% which is added on by almost all counties or cities.

Kansas-5.3% state rate. Counties, cities and special districts can push the rate as high as 8.65%.

Kentucky-6% state sales tax with no local option.

Louisiana-4% state rate, local parishes and cities can add another 5% for a maximum rate of 9%.

Maine-5% general sales tax; however, the rate on food and lodging is 7% and auto rental is 10%.

Maryland-6% statewide tax.

Massachusetts-6.25% statewide tax.

Michigan-6% statewide tax.

Minnesota-6.875% tax with local add ons that can push the total rate to over 10%.

Mississippi-7% statewide. Cities can add on additional tax to restaurant and lodging sales to push the rate to 9%.

Missouri-4.225% state tax rate, but optional taxes from cities, counties and special taxing districts can bring the rate over 9%.

Montana-Montana has no state sales tax, but some municipalities have up to a 3% sales tax.

Nebraska-State rate is 5.5% cities can impose up to another 1.5% for a total of 7%.

Nevada-Nevada has a statewide rate of 6.85%, but cities and counties can add on to raise the rate as high as 8.1%

New Hampshire-New Hampshire does not have a general sales tax. It does impose an 8% tax on meals, rental cars and lodging, a 7% tax on phones, 1.5% on real estate transfers (which is assesed on both the seller and the buyer)

New Jersey-7% statewide tax. Interestingly New Jersey allows for a lower local tax rate in specified "Urban Enterprise Zones".

New Mexico-Another state that technically does not have a sales tax. They do have a 5% Gross Receipts Tax. (see Hawaii for how that works)

New York-New York has 4% state sales tax. Local cities and counties can add another 4.5% and the Metropolitan Transit Authority adds another 0.375% for a total of 8.875. To add to the confusion in New York, local governments determine their own sales tax exemptions.

North Carolina-State tax rate is 5.5%, 8 of 100 counties add 2.5% for a total of 8%. 91 counties add 2.25% for a total rate of 7.75%. As an additional bonus Mecklenburg County (Charlotte) adds another 0.5% to fund light rail for a total rate of 8.25%. North Carolina's state rate was 4.5% but the rate was temporarily raised 1% on Sept 1, 2009 and is scheduled to expire July 1, 2011. (To find out how that has worked out for other states, see Rhode Island below)

North Dakota-North Dakota has a sliding scale of state sales tax from 3-7% based on the category of the item purchased. You can tack on anywhere from 1-2% on top of the base rate for local sales tax.

Ohio-The base rate is 5.5%. Counties and transit authorities can add another 2.5% each, but the total rate cannot exceed 8.5%.

Oklahoma-4.5% state rate and cities and counties can add up to another 4% for a total rate of 8.5%.

Oregon-Oregon has no statewide sales tax. Local cities can impose sales tax and many have added up to 5% tax, typically on food and lodging.

Pennsylvania-6% statewide tax. Allegheny County (Pittsburg) and the city of Philadelphia have an additional 1% for a total of 7%.

Rhode Island-7% statewide rate. The rate went from 5% to 6% in the 1970's and from 6% to 7% in the 1990s. Both increases were temporary, but they have not gotten around to lowering it back down yet. (Pay attention to Rhode Island if you live in North Carolina)

South Carolina-6% statewide rate with local cities and counties allowed to add an additional 1% each for a total rate of 8%. Myrtle Beach also has a 1% Education Capital Improvement Tax which makes its effective tax rate 9%.

South Dakota-4% statewide sales tax with an additional 2% tax added on by cities and up to an additional 4% that can be added by Special Jurisdictions (Indian Tribal Territories). South Dakota also has a tourism tax of 1% that is added on to lodging and amusement services all year except for visitor intensive businesses, which only pay the tax in June, July, August and September. (I am a warm weather guy, so I am not sure it's worth 1% savings to visit South Dakota in January.)

Tennessee-The state charges 7% sales tax. (5.5% on groceries) Counties can add another 2.75%, but if the county does not charge the maximum rate, cities in that county can impose a sales tax to bring the total up to 9.75%.

Texas-6.25% State sales tax. Cities, counties, special taxing districts and transit authorities can add on up to 2% more.

Utah-4.75% State rate, but cities, counties, unincorporated towns, rural hospital districts, local highway, zoos and art districts and resorts drive the rate as high as 16.35%. Different categories of items in Utah have vastly different sales tax rates.

Vermont-6% General state rate, but meals and lodging is 9% and alchoholic beverages 10%. 1% local option can be added on top of any of the state rates.

Virginia-5% rate broken into 4% for the state and 1% for local government. Certain groceries are taxed at 2.5%.

Washington-6.5% statewide rate with local option taxes from counties, cities, hospital districts, transit districts and revenue development districts pushing the rate as high as 10% in some areas. Washington does have a number of exemptions to sales tax including most groceries and prescription drugs, newspapers and sales to members of indian tribes.

Washington DC-5.75% sales tax which increases to 6% effective Oct 1, 2009.

Wyoming-4% statewide rate. Local counties and resort districts can add additional tax to bring the rate up to 9%.