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Combined State and Local Sales Taxes: Here are the states with the lowest and highest sales tax.
Tax Foundation ^ | 09/24/2011 | TF Staff

Posted on 09/24/2011 6:25:25 PM PDT by SeekAndFind

September 22, 2011

Combined State and Local Sales Taxes: New Report

by TF Staff

Today we released a new report on local sales taxes, which updates a study we published in February.  The new report updates the state and local sales tax rates across the country and ranks each state on its combined state rate and average local rate.  Click here to read the report.

Most shoppers have some idea of the sales tax rate imposed by their state, or they can at least find the rate by looking at the receipts they receive with every taxed purchase. However, it's easy to forget about the local rates imposed by many jurisdictions on top of the statewide rate.  Local option sales taxes can add significantly to the amount consumers pay for everyday goods; in some states, they can more than double the average sales tax paid by consumers.

The map below (click here to download it on our website) illustrates the combined rate and rank for each state, and a table in the new report displays the state rate, average local rate, combined rate, and rank of the combined rate for each state and the District of Columbia.

States with the Lowest State and Local Sales Taxes

Our report finds that although 14 states have no general local option sales tax, these states do not necessarily rank favorably. Indiana, for example, has no local general sales tax yet still ranks 21st because of a 7% statewide rate.

The following four states tie for the lowest rate because they impose neither a state sales tax nor a local sales tax:

Among states that do collect a statewide tax, the five with the lowest average combined rates are:

Mississippi has the lowest non-zero average local rate of 0.003%; attributable entirely to a 2.5% sales tax in the small city of Tupelo, which has a population of 34,546. After Mississippi, the following states have the lowest average local rates:

States with the Highest State and Local Sales Taxes

The highest sales taxes jurisdiction in the U.S. is Tuba City, Arizona, which has a combined rate of 13.725%. This is composed of a 6.6% state tax, a 1.125% Coconino county tax, and an additional 6% tax levied by the local Navajo tribal government.

Looking at state averages for local rates, we find the five highest average local rates in the following states:

  These states have the five highest combined state and local rates:

Click here for the full study, the data by itself, or the map by itself


TOPICS: Business/Economy; Society
KEYWORDS: salestax; statelocalsalestax; statesalestax; statetax; tax; taxes

1 posted on 09/24/2011 6:25:30 PM PDT by SeekAndFind
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To: SeekAndFind

In Crook County, Il we pay a total of 11% sales tax.


2 posted on 09/24/2011 6:33:57 PM PDT by mountn man (Happiness is not a destination, its a way of life.)
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To: mountn man

Is that why it’s called “Crook” county?


3 posted on 09/24/2011 6:41:50 PM PDT by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: SeekAndFind

Not all towns pay the same in Texas. Mine is 8%. A mile down the road in another town it’s 8.5%.


4 posted on 09/24/2011 6:42:54 PM PDT by TribalPrincess2U (Rabid democRATS and 0bama the dictator own it all now.)
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To: TribalPrincess2U
Not all towns pay the same in Texas. Mine is 8%. A mile down the road in another town it’s 8.5%.

8.25% is the ceiling in Texas. Unless they just very recently raised it.

5 posted on 09/24/2011 6:48:52 PM PDT by fwdude ("When in the Course of human events it becomes necessary for one people to dissolve ...")
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To: TribalPrincess2U

The Texas sales tax rate is 6.25%. Individual city, county and transit authority rates vary. Combined the tax isn’t supposed to exceed 8.25%. Do you know why your neighboring town can charge more?


6 posted on 09/24/2011 6:50:11 PM PDT by McLynnan
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To: SeekAndFind

Nice but only a piece of a much larger puzzle.

I like http://www.bestplaces.net/col/ to illustrate the difference in cost of living at a particular salary level. I recently “downsized” my COL by 34%.

Yes, it included a move away from California.


7 posted on 09/24/2011 6:53:15 PM PDT by cicero2k
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To: SeekAndFind

One of the few victories in California was voting down the extension of sales tax hikes earlier this year. Dropped 1%


8 posted on 09/24/2011 6:58:10 PM PDT by ThomasThomas ( Congressmen should wear uniforms like NASCAR drivers, so we can identify their corporate sponsors.)
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To: SeekAndFind

The map shows that Michigan has a combined sales tax of 32.2%. That can’t be right. I even put my glasses on and looked at it.


9 posted on 09/24/2011 7:00:18 PM PDT by Graybeard58
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To: SeekAndFind

Need one that combines State Income tax, Sales Tax and Property Taxes to glean a better normalized comparison.


10 posted on 09/24/2011 7:03:39 PM PDT by Cvengr (Adversity in life and death is inevitable. Thru faith in Christ, stress is optional.)
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To: SeekAndFind

My property tax just dropped to half what it was a few years ago. I now pay $800.00 a year. There are places back east that have the same valuation and they are paying $5,000 a year.


11 posted on 09/24/2011 7:10:54 PM PDT by McGavin999
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To: SeekAndFind

What’s up with Tennessee? They also have an outrageous 17.25% rooms and meals tax the last time I was there in ‘06. I will avoid staying there in the future, not that anybody there cares.


12 posted on 09/24/2011 7:12:50 PM PDT by Past Your Eyes (I'm sticking with Herman. No more second terms!)
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To: coloradan

Just one of the MANY.


13 posted on 09/24/2011 7:52:15 PM PDT by mountn man (Happiness is not a destination, its a way of life.)
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To: McGavin999
My property tax just dropped to half what it was a few years ago. I now pay $800.00 a year. There are places back east that have the same valuation and they are paying $5,000 a year.

Sales tax alone is not particularly meaningful as your comment suggests. The comparison that matters is total taxation. In Maryland we have only a 6 percent sales tax with no local version. However I pay $2500+ in property tax and 5+ percent state income tax with a 3 percent piggy-back income tax here in Prince George's County. Our governor and legislative leaders understand the current budget challenge to be a revenue problem.

14 posted on 09/24/2011 7:54:31 PM PDT by jimfree (In 2012 Sarah Palin will have more quality executive experience than Barack Obama.)
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To: Past Your Eyes

Maybe because TN has no state income tax? Just a guess. Some TN residents might can comment about it.


15 posted on 09/24/2011 11:00:10 PM PDT by Cedar
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To: SeekAndFind
SD #40...BUT no state or local income tax, either.

Oregon, [in a 3-way tie at 47th] has no sales tax, but a hefty [but not as hefty as CA’s was in 1984 when I left CA for OR] income tax; and OR property taxes were (during the years 1997-2003 that we had comparably valued property in both states) considerably higher than SD

My point is not to tout SD, nor knock Oregon, but to merely point out that these single facet “analysis” are pretty much worthless. One must look at the entire state & local tax burdens in each state, based upon equal family size, income, deductions, spending, property value (NOT assessed value!) etc. Also needing to be included are vehicle related taxes and fees based on the same vehicle & miles driven/year.

Then there are still other factors not shown in this sales tax % map: WHAT is or isn't taxed? Everything? Everything except food? What about prescriptions? Items for resale? Are there any exemptions/rebates available to elderly/blind/”poor” or others? Are all, or some, “services” taxed as a “sale”; or none?

I'm not sure what the “average” state & local rate has to do with informing a consumer of anything useful, such as how their local rate compares to neighboring rates.

My county's unincorporated area businesses charge the flat state rate; if I shop inside city limits then the rate goes up, with the city's rate + state rate charged. If I go to Rapid City, I pay state + a lower city rate) rate...unless it is a large item from a large retailer that collects based on ZIP Code, in which case I pay my normal, state-only rate.

An aside to all this is, if it is so many different rates just to shop locally, then HOW is a retailer, especially a small one, on the Web supposed to collect the correct rate for each customer's sales tax correctly? Software that is constantly updated? Use of a specialized service? Either one will wipe out their margin; or they can price themselves out of business, to cover the increased costs.

16 posted on 09/25/2011 12:03:54 AM PDT by ApplegateRanch ("Public service" does NOT mean servicing the people, like a bull among heifers.)
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To: Cvengr
Need one that combines State Income tax, Sales Tax and Property Taxes to glean a better normalized comparison.

Yep. Agreed. Separating out only one of the ways (sales taxes) that government pillages people doesn't mean much without the context of state and local income and nuisance taxes.

17 posted on 09/25/2011 12:14:32 AM PDT by Lancey Howard
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To: Cvengr

Need one that combines State Income tax, Sales Tax and Property Taxes to glean a better normalized comparison.


True. I live near the DFW airport. No TX income tax, but State and local sales tax here is 8.25%, except on food bought at a grocery. County and local ISD and Hospital District property taxes run me about $5500. ...I’m just thankful we don’t have State income tax!!


18 posted on 09/25/2011 4:25:54 AM PDT by octex
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To: Cedar

I live in NH. We have neither. Maybe it’s because they are tax happy - that would be a much more likely excuse in my mind.


19 posted on 09/25/2011 6:02:13 AM PDT by Past Your Eyes (I'm sticking with Herman. No more second terms!)
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To: Past Your Eyes

17.25% rooms and meals tax the last time I was there in ‘06.

Here in Tn. they keep saying, “well, we have no state in-come tax”, which I agree. How-ever, if you could add up all the hidden tax’s on other act’s. you would understand why there is no state in-come tax. Example, all patients in Nursing Home beds, five year ago $100.00 per bed, I’m sure it’s more expensive by now. Like the tax you mention, many don’t know it exist.


20 posted on 09/25/2011 6:46:36 AM PDT by buck61
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To: Graybeard58

Re: Michigan sales tax

This chart says that it’s 6% . . . (Chart shows state sales tax rates along with average COMBINED city and county rates)

http://thestc.com/STrates.stm


21 posted on 09/25/2011 11:59:34 AM PDT by deks ("...the battle of our time is the battle of liberty against the overreach of the federal government")
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To: deks
I'm looking at the map near the top of the page that says.

Sales Tax: Combined State and Average Local Rates.

MI 32.2%

What is that?

The other 47 contiguous states appear to be below 10%

22 posted on 09/25/2011 3:26:11 PM PDT by Graybeard58
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