Which State Has the Highest Sales Tax?

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State Sales Tax Rates

  • The highest state sales tax is in California at 7.25%.
  • The next highest are Indiana, Mississippi, Rhode Island, and Tennessee at 7%.
  • When including average local sales taxes, rates over 7% can be found in 20 states.
  • Colorado has the lowest state sales tax rate at 2.9%.
  • 5 states – Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax.
  • Sales tax revenue funds state services like education and infrastructure.

Income Tax Rates

  • California has the highest state income tax, with a rate of up to 13.3%.
  • Middle-class Californians pay 6% to 9.3% income tax.
  • Hawaii has income tax rates ranging from 1.4% to 11%.
  • New Jersey follows with 1.4% to 10.75% income tax.
  • 7 states have no state income tax.

Property Taxes

  • Property taxes are recalculated annually based on market value.
  • Vermont and New Jersey have relatively high property tax rates to support services like education and infrastructure.

Highest Sales Tax States

  • The highest sales tax states are Tennessee at 9.55%, Louisiana at 9.52%, Arkansas at 9.51%, Washington at 9.23%, and Alabama at 9.22%.

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