What State Has Lowest Sales Tax? States with the Lowest Sales Tax

Alaska, Delaware, Montana, New Hampshire, and Oregon do not have a statewide sales tax. Colorado has the lowest non-zero state sales tax rate at 2.9%. Alabama, Georgia, Hawaii, New York, and Wyoming have a 4% state sales tax rate. Some states without sales taxes rely more on other taxes. Local taxes can make sales tax rates higher than the state rates. Five states have average combined state and local sales tax rates below 5% – Alaska, Hawaii, Wyoming, Wisconsin and Maine.

Which state has the cheapest sales tax?

The state with the lowest non-zero state sales tax rate is Colorado at 2.9%.

California has the highest state-level sales tax rate, at 7.25%. New York has the highest state income tax burden, at 4.7% of per capita personal income.

However, localities in Alaska can impose their own sales taxes, and the average local sales tax rate in Alaska has increased to 1.83% over the last six months.

The five states with the highest local taxes are:

  • Tennessee
  • Arkansas
  • Alabama
  • Louisiana
  • Washington

45 US states charge sales tax.

Which state has no sales tax in the US?

Alaska, Delaware, Montana, New Hampshire, and Oregon do not have a statewide sales tax.

Alaska’s local authorities have capped local taxes below 2%, meaning the highest tax that can be charged in the state is 2%.

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