States with Lowest Sales Tax Rates
The states with the lowest sales tax rates are Alaska, Delaware, Montana, New Hampshire, and Oregon, all of which charge no sales tax.
Taxes on Specific Goods and Services
Alaska and Montana allow localities to charge local sales taxes. Only South Dakota cut its state sales tax this year. Note: City, county and municipal rates vary.
Variability of Sales Tax Rates
Sales tax rates vary widely by state, with some states charging no sales tax at all.
Sales Tax Rate Comparison
In general, there is no clear regional trend in sales tax rates, with high and low tax states spread throughout the country.
Noteworthy Sales Tax Rates
California has the highest sales tax rate at 7.25%, followed closely by Tennessee, Rhode Island, Mississippi, and Indiana, all of which have a sales tax rate of 7%.
States with 0% Sales Tax
As of 2023, five states impose a 0.000% sales tax including Alaska, Delaware, Montana, New Hampshire, and Oregon.
Taxable Items
Sales tax is an important source of revenue for many states in the United States. The amount of sales tax varies from state to state.
State Sales Tax Rates Comparison
Here are 10 states with the lowest sales taxes in the United States:
- Georgia: 4%
- Colorado: 2.9%
- Alabama, Hawaii, New York, Wyoming: 4%
State-Level Sales Tax Rates
The lowest non-zero state-level sales tax is in Colorado at 2.9%, followed by Alabama, Georgia, Hawaii, New York, and Wyoming at 4%.
States with No Sales Tax
Five states do not have statewide sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon.
States with Highest Sales Tax Rates
Here are the 10 states with the highest sales tax rates:
- California: 7.25%
- Indiana: 7%
Lowest Sales Tax on Cars
States like North Carolina and Hawaii have the lowest sales tax on cars below 5%. Oklahoma, Louisiana, and Arkansas have the highest sales tax rates on cars.
Vehicle Sales Tax Regulations
Almost all states impose statewide sales taxes on vehicle purchases, with rates varying across states.
Vehicle Registration Fees
In Maine, doc fees amount to $499, with a car registration fee of $35 and a car sales tax rate of 5.50%.