US Sales Tax Map 2026 — Combined Rates

South — avg 8.45%

The South consistently ranks as the highest-tax region in the United States. States like Tennessee, Louisiana, Arkansas, and Alabama all exceed 9% combined — largely because these states rely heavily on sales tax revenue rather than income taxes. Tennessee, for example, has no broad-based state income tax, making sales tax the primary revenue engine.

Midwest — avg 7.65%

The Midwest sits near the national average. Illinois reaches 8.74% due to high Chicago-area local taxes. Kansas hits 8.70%. Indiana and Michigan keep it simple with flat statewide rates and no local tax. Missouri's wide range (4.225% state) gets pulled up by local rates averaging 4.10%.

West — avg 7.22%

The West has the widest variance of any region. Oregon and Montana have no sales tax at all, pulling the regional average down. California's 8.82% is the highest state rate in the US. Washington State hits 9.22% combined. Colorado surprises with a mere 2.9% state rate, but local taxes bring it to 7.72%.

Northeast — avg 6.52%

The Northeast has the lowest regional average, largely because New Hampshire and Delaware have zero sales tax and compensate with other revenue sources. Connecticut, New York, and Rhode Island cluster around 6–8.5%. Several Northeast states offer broad exemptions for groceries and clothing.

Oregon (0%)

Oregon is the most notable no-sales-tax state because it also has no local sales tax — the combined rate is a flat 0%. Oregon makes up revenue through one of the highest personal income tax rates in the nation (up to 9.9%). Portland residents sometimes drive to Oregon from neighboring Washington to make large purchases tax-free.

Montana (0%)

Montana has no state or local sales tax, making it a popular destination for vehicle and RV purchases. Montana residents can register vehicles there to avoid other states' sales taxes, a practice that has led several states to crack down on Montana LLC registrations. Montana compensates through property taxes and a 6.75% income tax.

New Hampshire (0%)

New Hampshire's motto is "Live Free or Die" and its tax policy matches: no sales tax, no income tax on wages (though investment income was taxed until 2025). NH relies heavily on property taxes — among the highest in the nation — plus rooms-and-meals taxes on dining and lodging. Cross-border shopping from Massachusetts is significant, especially near the Salem outlet malls.

Delaware (0%)

Delaware's lack of sales tax is so famous that the Christiana Mall near Wilmington is one of the busiest shopping centers in the US, drawing buyers from nearby Pennsylvania, New Jersey, and Maryland. Delaware compensates with a gross receipts tax on businesses. It is also a popular state for business incorporation for tax and legal reasons unrelated to sales tax.

Alaska (0% state, 1.76% avg local)

Alaska has no state sales tax but is unique in allowing local municipalities to levy their own sales taxes. Juneau charges 5%, Anchorage charges 0%, and smaller communities vary widely. The population-weighted average local rate is 1.76%. Alaska funds state government primarily through oil revenues. The Permanent Fund Dividend even pays residents each year from oil royalties.

The state rate is just the floor

Every state sets a base sales tax rate through its legislature. But 38 states allow counties, cities, transit authorities, and special districts to add their own rates on top. In some states these local rates are tiny (Hawaii: 0.44% avg local). In others they dominate (Alabama: 5.24% avg local on top of 4% state).

Colorado has the starkest example: a 2.9% state rate — the lowest in the country — but a 4.82% average local rate. The combined rate of 7.72% is above the national average despite the low state rate. If you only looked at the state rate, you'd think Colorado was cheap. The combined rate tells the real story.

Cities within the same state can differ dramatically

Chicago, Illinois: 10.25% combined. Springfield, Illinois: 8.25% combined. Same state, 2 percentage points apart. Los Angeles: 10.25%. Sacramento: 8.75%. New York City: 8.875%. Albany: 8.0%. This is why the bar chart shows average local rates — your actual rate depends on your exact purchase location.

For a precise rate at a specific address, use the Sales Tax Calculator with manual rate entry, or look up your local rate on your state's Department of Revenue website.

Special districts can add even more

Beyond county and city taxes, many states allow transportation districts, stadium authorities, and downtown improvement districts to levy additional sales taxes. These can add 0.1% to 1.5% on top of the state + county + city rate. Some California counties have voters-approved transit measures adding 0.5–1% for BART or Caltrain funding.

Destination-based vs origin-based states

Most states are destination-based — meaning the tax rate is determined by where the buyer receives the goods, not where the seller is located. A handful of states (including Arizona, California, and Texas for in-state sales) use origin-based sourcing for in-state transactions. This distinction matters enormously for ecommerce sellers. See the Economic Nexus Guide for the full breakdown.

High-tax states require careful pricing

In Tennessee (9.55%), a $1,000 product costs the customer $1,095.50. In Oregon (0%), the same product costs $1,000 flat. If you sell across state lines, your effective price varies by nearly 10% based on location — a critical consideration for competitive pricing. Use the Multi-State Sales Tax Calculator to model pricing across states side by side.

Economic nexus thresholds by region

Since the 2018 Wayfair ruling, selling into any state above $100,000/year or 200 transactions creates nexus — even without a physical presence. High-tax states like California ($500K threshold) have higher bars. For ecommerce sellers, the South and Midwest require the most nexus registrations due to the concentration of mid-sized states with $100K thresholds. See our Economic Nexus Guide for state-by-state thresholds.

Monthly reconciliation matters more in high-tax states

A 9.55% state collects nearly 35% more tax per dollar of sales than a 7.0% state. For businesses with $1M in annual revenue, the difference in tax collected and remitted can be $25,000+/year between a high-tax and average-tax state. Use the Reconciliation Calculator to keep your books clean.

No-tax states: opportunity and misconceptions

Businesses headquartered in no-tax states (Oregon, Montana, NH, Delaware) still owe sales tax in every other state where they have nexus. Having a physical location in a no-tax state doesn't exempt you from collecting tax on sales shipped to high-tax states. It only means your in-state customers don't pay sales tax on local purchases.

State rates require legislation

Statewide sales tax rates are set by state legislatures and signed by the governor. Rate changes require passing a bill — a slow process that means state rates are relatively stable. Most states haven't changed their base rate in years; California's 7.25% has been the state base since 1991 (though local rates have changed). When states do change rates, they typically phase in over 6–12 months.

Local rates can change quarterly

County and city sales tax rates can be approved by local governments or through ballot measures, sometimes with as little as one election cycle of lead time. California's Proposition 218 requires voter approval for local tax increases. Other states allow city councils to approve rates directly. TaxesLedger updates rates quarterly to capture these changes, but always verify current rates for high-stakes calculations.

Special district taxes

Voters frequently approve special purpose sales taxes for specific projects — BART extensions in the Bay Area, light rail in Denver, stadium construction in Las Vegas, hurricane recovery in Louisiana. These narrow taxes are why the tax rate at one shopping center can differ from one three blocks away if they're in different district boundaries.

The Streamlined Sales Tax Project

24 states participate in the Streamlined Sales Tax (SST) agreement, which simplifies rates, definitions, and filing across member states. SST states commit to uniform definitions, simplified administration, and state-level administration of local taxes (so sellers file one return per state, not one per city). If you sell across multiple states, SST membership dramatically reduces compliance burden. Learn more in our Economic Nexus Guide.