This causes the final amount to differ from one location to another, even within the same state. Since 2 December 2010, sales taxes are exempt to unprepared food items and prescription medications. Prepared food, over-the-counter medications, and medical marijuana are subject to sales tax. City governments are allowed a maximum of 2% sales tax for use by the local government, especially in Sioux Falls in Minnehaha County. However, they can impose a gross receipts tax on things like lodging, alcohol, restaurants, and admissions.

Selling These Products? US Tariffs Could Impact Your Bottom Line

While changes due to the new weighting were mostly trivial, we show changes in rank based on January 1 figures recalculated under the new population weighting. Due to the updated population weighting, this report is not strictly comparable to previously published editions, though differences amount to minor rounding errors. This report ranks states based on tax rates and does not account for differences in tax bases (e.g., the structure of sales taxes, defining what is taxable and nontaxable). For instance, most states exempt groceries from the sales tax, others tax groceries at a limited rate, and still others tax groceries at the same rate as all other products. A consumer’s sales tax burden begins with the statewide rate, which is constant across all cities and counties within a state. This base rate is the starting point before any local taxes are factored into the final purchase price.

Latest Data

Notably, if the revenue from the gross receipts tax in any single fiscal year from 2026 to 2029 is less than 95 percent of the previous year’s revenue, then the state’s rate will return to 5.125 percent on the following July 1. We weight these numbers according to Census 2010 population figures to give a sense of the prevalence of sales tax rates in a particular state. The combined sales taxes for state and average local range from 0% to 9.55%. Four states—Oregon, New Hampshire, Montana, and Delaware—have a combined sales tax of 0%. On the other end of the spectrum, Louisiana and Tennessee both have the highest combined sales tax rate of 9.55%. Unlike tax rates, which vary widely based on an individual’s circumstances, tax burden measures the proportion of total personal income that residents pay toward state and local taxes, according to WalletHub.

What was the actual methodology used, you don’t define personal income anywhere.

• Currently, the majority of Utah’s aggregate sales taxes are in the range of 6.1 – 8.35%.
• Credit is allowed for sales or use taxes paid to another state with respect to the purchase.
• This additional tax rate may be 1% or 2% or other amounts depending on the county in which the business is located.
• In February, thestate has a sales tax holiday on generators and storm preparedness products andanother in July for school supplies.
• The state has a relatively low sales tax rate due to the presence of several sales tax exemptions and exclusions.

You are responsible for deciding what financial products and providers are best for your needs. 8 Due to data limitations, this rate was not included in the Midyear 2019 update. Any state whose ranking improved did so only in comparison to those who enacted rate increases. Six states (Arkansas, Missouri, Nebraska, North Dakota, Texas, and Washington) actually saw small local increases while still improving their rankings. Recent updates include Kansas eliminating tax on groceries, a trend other states are following.

A Tax Law for Manufacturers, but a Trade Policy Against Them

West Virginia was the first U.S. state to enact a sales tax,229 currently 6%. The sales tax on food was gradually phased out from January 2006 through July 2013.230 However, prepared food remains taxed at the full rate. Credit is allowed for sales or use taxes paid to another state with respect to the purchase. Revenues are usually used for economic development and tourism projects. This additional tax rate may be 1% or 2% or other amounts depending on the county in which the business is located. There is an additional 2% tax on restaurant sales in Marion County to pay for Lucas Oil Stadium and expansion of the Indiana Convention Center.

1 Special taxes in Montana’s resort areas are not included in our analysis. On the International Edition of SalesTaxHandbook, we have VAT rates and information for 114 countries worldwide. Travel refers to the ease, safety, and attractiveness of visiting a place for tourism or other purposes.

Local Sales Tax Rates

Taxable meals exclude food and beverages for consumption off premises, but catered and restaurant meals are taxable at the 9% rate. Purchasers of goods who have not paid sales tax in their own jurisdiction must file use tax returns to report taxable purchases. Many states permit such filing for individuals as part of individual income tax returns. Sales taxes collected in some states are considered to be money owned by the state, and consider a vendor failing to remit the tax as in breach of its fiduciary duties. Sellers of taxable property must file tax returns with each jurisdiction in which they are required to collect sales tax. Most jurisdictions require that returns be filed monthly, though sellers with small amounts of tax due may be allowed to file less frequently.

Beer, wine, and liquor sold for immediate consumption are subject to a 10% alcoholic beverages tax. Ohio law requires virtually every type of business to obtain an Ohio Sales Tax Certificate Number. If someone sells goods on eBay or the internet and ships them to someone in the state they reside, then they must collect sales tax from the buyer and pay the collected tax to the state on a monthly or quarterly basis. If someone sells less than $4 million in annual sales, they do not have to collect or pay sales tax on out-of-state sales. Michigan Ballot Proposal , which was opposed by 80% of voters, would have raised the sales and use taxes to 7%.

Taxable value

All states imposing sales taxes examine sales and use tax returns of many taxpayers each year. Upon such audit, the state may propose adjustment of the amount of tax due. Some states require payment of tax prior to judicial appeal, and some states consider payment of tax an admission of the tax liability.

• Unlike Maryland’s quarterly filing, Virginia’s CU-7 is due annually between January 1 and May 1 or can be filed optionally instead with Schedule A with Form 760, or Schedule NPY with Form 760PY.
• Tax rates are current as of August 2025, and we will update this table again in September.
• To determine the residents with the biggest tax burdens, WalletHub compared the 50 states based on the cost of three types of taxes—property taxes, individual income taxes, and sales and excise taxes—as a share of total personal income in the state.

History is the states with the highest sales tax rates in the usa study of past events and their impact on human societies. This category includes metrics such as historical landmarks, museums, and archaeological sites. Culture refers to the shared beliefs, values, customs, behaviors, and artifacts that characterize a group or society.