States with the Highest Sales Tax

Updated July 2026

Sales taxes go back further than most people think. Pennsylvania rolled out a mercantile license tax in 1821. It wasn’t a broad-based sales tax in the modern sense, but it counts as the first recorded tax on commercial transactions in the country. Kentucky tried a retailer tax in 1930. That tax settled into a flat 3% by 1934, then got scrapped entirely by 1936. Mississippi is generally credited as the first state to adopt a modern sales tax, and roughly two dozen states, twenty-four in total, followed suit during the early 20th century. Vermont came last to the table, holding out until 1969.

Sales tax structures today look nothing alike from state to state. Each one picks its own base rate. Some states keep things low. Others don’t. The real picture only comes into focus once you factor in local add-ons. Counties and cities layer their own levies on top, and a rate that looks reasonable on paper can turn brutal once a city government gets involved.

Statewide numbers rarely tell the whole story. Take Illinois. The state rate sits at 6.25%, but local jurisdictions tack on an average of 1.95%, which brings the total to 8.20%. Chicago’s combined rate hits 9.6%, among the steepest in the country. Nearby Evanston and Oak Park charge even more, creeping toward 10.8%.

Kansas runs a 6.3% state tax, with local communities adding 1.96% on average, for a combined 8.26%. Kansas doesn’t carve out exceptions the way many states do. It taxes groceries at the same rate as everything else, no exemption. There’s a tradeoff, though: Kansas has no state income tax. Federal brackets still apply, of course, but nothing at the state level.

Tennessee’s state sales tax runs 7%, and its average local rate adds another 2.45%. That’s 9.45% combined, the highest in the nation as of January 1, 2013, per the Tax Foundation’s rankings. Nearly everything gets taxed here. A short list of exceptions exists, prescription drugs and some agricultural supplies among them, but otherwise the rate applies broadly.

Arizona’s statewide rate is 6.6%, unremarkable on its own. Yet Tuba City, a Navajo Nation community, posted a total rate of 13.725% in early 2013. Highest in the country. The city’s number stacks state, tribal, and municipal levies on top of each other. Tribal governments in Arizona can set their own sales taxes independently of the state, which is exactly how a below-average base rate turns into an extreme local burden.

California’s state rate, at 7.5%, tops every other state in the country. That beats Tennessee, beats Indiana, beats New Jersey. But local rates swing widely once you leave the state floor. San Francisco lands at 8.9% combined. Los Angeles County tacks on another 1.75%, pushing the city’s total to 9.25%. San Diego and Sacramento both clear 8.5% as well.

Mississippi’s state rate sits at 7%, with an average local add-on of 1.85%, landing around 8.85% combined. Louisiana doesn’t crack the top five on state rate alone, but its local average of 4.87% is the highest in the country. That local burden drags its combined rate to 8.89% midyear 2013, per the Center for Jobs. Most goods get taxed under Louisiana’s system, though groceries, prescription drugs, and some farm equipment are carved out.

Washington charges 6.5% at the state level. Local governments add 1.7% on average, bringing the combined figure to 8.2%. Seattle stacks a 0.9% city tax on top of a 2% county tax, and parts of King County end up north of 10.5%. Amazon, Microsoft, and Boeing keep the local economy humming, and all that consumer spending feeds directly back into sales tax revenue.

Illinois sits at 6.25% statewide, with local rates averaging 1.95% and a combined national average of 8.20%. Cook County adds 1.95%. Chicago’s total reaches 9.6%, a full 2.5 points above the state rate alone. On a $100 purchase, that’s the difference between $6.25 in tax and $9.60. For a middle-income shopper, that gap adds up fast.

Minnesota’s state rate is 6.875%. Add an average local rate of 1.15% and you land near 8.025% combined. Minneapolis adds 1.75% on its own, and Hennepin County tacks on another 1.5%, for a total of 9.125%, higher than California’s state rate by itself. Local voters in Minnesota can approve extra levies through referenda, so these numbers aren’t fixed from above. They’re partly a local choice.

Nevada’s state rate runs 6.85%, and there’s no state income tax to offset it. Local rates average just 0.8%, for a combined 7.65%. Las Vegas and Clark County add 0.5% on top, bringing the city’s total to 7.35% for most purchases. Hotels and motels sometimes carry higher rates thanks to special assessments. None of this is an accident: Nevada leans hard on sales tax revenue precisely because it skips personal income tax.

Indiana’s state tax is 7% flat. Local rates average 1.3%, combining to 8.3%. Indianapolis adds 1.5%, and Marion County tacks on 0.75% more, pushing the total to 9.25%, well above the national average. Revenue from this funds public education, transportation, and emergency services across the state.

New Jersey’s state rate is 7%, with local taxes averaging 1.2% for a combined 8.2%. In Trenton specifically, the city adds 1.5% and the state layers on a 0.05% tax for certain services, pushing some districts to 9.7%. The income tax here is progressive. The sales tax isn’t. Everyone pays the same rate regardless of what they earn.

Texas keeps its state rate at 6.25%. Local averages run 1.9%, combining to 8.15%. Dallas County and Houston both add 1.75%, and parts of Harris County reach 9.75% combined. There’s no state income tax here either. Sales tax carries the load for local revenue, funding schools, police departments, and infrastructure projects across the state.

How Much Does a High Sales Tax Really Cost? A Real Example

Picture a $1,000 purchase in Tuba City, Arizona. At 13.725%, that’s $137.25 in tax alone, more than plenty of people spend on a decent meal out. Now compare that to Colorado, where the state rate is 2.9% and the local average adds 1.2%, for a combined 4.1%. Same $1,000 purchase there costs just $41 in tax. The gap between the two, $96.25, isn’t trivial. For a family stretching a paycheck, that’s real money, and low- and middle-income households feel it more because they spend a bigger share of what they earn on basic goods.

Who Should Skip This Analysis?

If you live somewhere with high local rates and a tight budget, this data might feel more alarming than useful. Tuba City’s 13.725% is an outlier. It doesn’t reflect what most shoppers actually pay day to day. Buy mostly online, or live in a no-sales-tax state like Delaware? None of this moves the needle much for you. The people who really feel these numbers are frequent in-person shoppers stuck in high-tax counties and cities.

Frequently Asked Questions

Which state has the highest average combined sales tax rate in the U.S.?

Tennessee had the highest average combined state and local sales tax rate at 9.44% as of January 1, 2013, according to the Tax Foundation.

What’s the highest total sales tax rate in any U.S. jurisdiction?

Tuba City, Arizona, had the nation’s highest total sales tax rate at 13.725% in early 2013, combining state, tribal, and local levies, per the Tax Foundation.

Does California have the highest state-level sales tax?

Yes. California’s state sales tax rate was 7.5% in 2013, the highest in the U.S., according to the Tax Foundation.

Can local taxes make a big difference in total sales tax burden?

Yes, and dramatically so. In Illinois, Chicago’s rate hits 9.6% despite a state rate of just 6.25%. The Tax Foundation points out that 37 states have local sales taxes capable of pushing combined rates well past what the state rate alone suggests.

Which states have no state income tax but high sales tax rates?

Nevada, Texas, and Florida skip state income tax entirely. Nevada’s combined average rate lands at 7.65%; Texas comes in at 8.15%. Both states depend heavily on sales tax to keep public services funded.

Why does Louisiana have such a high average combined sales tax rate?

Louisiana’s average local sales tax rate of 4.87% is the highest in the country, and it’s what pushes the state’s combined rate up to 8.89% midyear 2013, per Center for Jobs. Local governments there rely on that revenue for education and infrastructure spending.

How do sales tax rates affect consumer behavior?

High rates change spending habits. Some shoppers delay big purchases. Others cross state lines to buy where rates are lower, or shift to online retailers based in different tax jurisdictions entirely. The Federal Reserve and CFPB have both studied how these tax burdens ripple into household budgets and credit usage.

Are groceries taxable in high-tax states?

Depends entirely on the state. Tennessee taxes groceries along with nearly everything else, at 7%. New Jersey exempts groceries outright. Arizona, meanwhile, taxes groceries in Tuba City specifically. Rules shift even within a single state’s borders.

Do military bases have different sales tax rules?

Yes. Military installations are generally tax-exempt. Service members shopping at on-base stores, places like the Army and Navy Exchange (A&NEX) or the Navy-Marine Corps Exchange (NMEX), don’t pay state or local sales tax on those purchases.

Can you avoid sales tax by shopping online?

Not reliably. Online retailers have to collect sales tax in any state where they maintain a physical presence or meet an economic nexus threshold. Back in 2013, states including California, New York, and Texas already required online sellers to collect tax once they crossed certain sales thresholds. The IRS and CFPB continue to track compliance on this front.