Sales Tax Rates by State: 2026 Complete Guide

Sales tax is the one tax most Americans pay every single day — at the grocery store, the gas station, the hardware store, online checkout. Yet it is also one of the least understood parts of the overall cost of living in any given location.

The reason it gets overlooked is that it is invisible in the moment. It shows up at the bottom of a receipt, gets paid automatically, and disappears. But it adds up. A household spending $4,000 per month on taxable goods and services in a state with a 10% combined sales tax pays $4,800 per year in sales tax. In a state with a 4% rate, that same spending costs $1,920 annually — a difference of nearly $3,000 per year that never appears in any mortgage calculator or relocation guide.

This page breaks down the 2026 state-by-state sales tax picture — which states have no sales tax, which have the highest combined rates, why the state rate is only part of the story, and how to find the exact rate for any ZIP code in the country.

How Sales Tax Works in the United States

Unlike most countries that use a national sales tax or VAT, the United States has no federal sales tax. Sales tax is entirely a state and local matter, which is why it varies so dramatically from one location to another. ¹

45 states and the District of Columbia collect a statewide sales tax. The remaining five states — Alaska, Delaware, Montana, New Hampshire, and Oregon — have no statewide sales tax at all, though Alaska allows local governments to impose their own. ²

Beyond the state rate, 38 states allow local governments — counties, cities, and special taxing districts — to layer additional sales tax on top of the state rate. This is where the complexity lives. In Illinois, the state rate is 6.25%. But a customer in Chicago pays 10.25% once city and county taxes are added. A customer in Springfield pays 8.75%. Same state, very different rate. ³

The combined rate — state plus all applicable local taxes — is what you actually pay at the register. And because local rates vary by county, city, and sometimes even by ZIP code, the only way to know the exact rate for a specific address is to look it up at that level. You can find the combined sales tax rate for any ZIP code in the United States at ZipCodePlus.com.

The Five States With No Sales Tax

These five states collect no statewide sales tax: ²

Alaska — No state sales tax, but local governments can and do impose their own rates. The average local rate across Alaska is 1.82%, meaning most Alaskan residents pay some sales tax depending on where they live.
Delaware — No sales tax at any level. Delaware is one of only a handful of places in the country where you pay exactly the sticker price at checkout.
Montana — No sales tax at any level. Combined with relatively low overall costs in most of the state, Montana’s zero sales tax is a meaningful financial advantage for residents.
New Hampshire — No sales tax at any level, and no income tax as of 2025. New Hampshire’s dual absence of both major consumption and income taxes makes it one of the most favorable states for take-home purchasing power, though property taxes are among the highest in the nation.
Oregon — No sales tax at any level. Oregon’s zero sales tax is one of the primary reasons residents of nearby Washington state regularly cross the border to make large purchases.

The Highest Combined Sales Tax States in 2026

At the other end of the spectrum, these states have the highest average combined state and local sales tax rates: ¹ ³

Louisiana — 9.55% average combined rate, the highest in the nation. Louisiana raised its state rate from 4.45% to 5% in January 2025 as part of a broader tax reform package. Combined with an average local rate of approximately 5.1%, Louisiana residents pay more in combined sales tax than anywhere else in the country.
Tennessee — 9.548% average combined rate, effectively tied with Louisiana for the highest in the nation. Tennessee’s 7% state rate is among the highest state-level rates, and local additions push the combined rate near 9.5% on average. Tennessee has no income tax, so the state relies heavily on sales tax as a revenue source — a trade-off that matters significantly for everyday shoppers.
Arkansas — 9.46% average combined rate, third highest nationally.
Washington — 9.38% average combined rate. Washington also has no income tax, making it another state that compensates through higher sales and excise taxes.
Alabama — 9.29% average combined rate. Alabama’s state rate is only 4% — one of the lowest in the country — but its average local rate of 5.25% is the highest local add-on of any state, pushing the combined rate into the top five nationally.

The Lowest Combined Sales Tax States in 2026

Among states that do collect sales tax, these have the lowest average combined rates: ¹ ³

Alaska — 1.82% average combined rate (all local, no state rate)
Hawaii — approximately 4.44% combined. Hawaii’s sales tax has a broad base that includes many services not taxed in other states, so the effective burden is higher than the rate suggests.
Wyoming — approximately 5.36% average combined rate, with a low 4% state rate and modest local additions
Wisconsin — approximately 5.43% average combined rate
Maine — 5.5% state rate with no local additions, making it one of the most predictable sales tax environments in the country

State-Level Rates: The Top and Bottom

Highest state-level rates (before local additions): ³

California: 7.25%
Tennessee, Rhode Island, Indiana, Mississippi: 7.0% each

Lowest non-zero state-level rates: ¹

Colorado: 2.9% — the lowest state sales tax rate in the country among states that collect one
Alabama, Georgia, Hawaii, New York, Wyoming: 4.0% each

The national average state sales tax rate is approximately 5.1%. When local taxes are added, the national average combined rate rises to approximately 6.44%. ⁴

Why Local Rates Matter More Than State Rates

The state rate gets all the attention, but for most people the local rate is what actually determines their tax bill. Here is why:

Local rates vary enormously within the same state. In Colorado, the state rate is just 2.9% — the lowest in the country. But Colorado has some of the highest local rates in the nation, with certain jurisdictions adding more than 8% on top of the state rate. The combined rate in some Colorado locations exceeds 11%. ³

Alabama is the extreme case. Its 4% state rate makes it look like a low-sales-tax state. But Alabama’s average local rate of 5.25% is the highest local addition of any state in the country, pushing the average combined rate to 9.29%. A shopper in Alabama pays nearly as much in sales tax as a shopper in Louisiana — despite the state rate being less than half. ¹

New York tells the same story in reverse. New York’s state rate is 4% — low by national standards. But in New York City, city and county taxes push the combined rate to 8.875%. A shopper in a rural upstate county may pay 4% while a Manhattan resident pays 8.875% on the same purchase. ³

This variability is why ZIP-code-level data matters. The state rate tells you very little about what you will actually pay. The combined rate for your specific location — which you can look up for any ZIP code at ZipCodePlus.com — is the only number that reflects your real cost.

What Is and Isn’t Taxed

Sales tax applies to most tangible goods, but states vary significantly on what they exempt. A few patterns that affect everyday budgets: ²

Groceries: Most states exempt food purchased for home preparation from sales tax, but not all. Mississippi, Alabama, South Dakota, and a handful of others tax groceries at the full rate. For a family spending $800 per month on groceries in a state that taxes food at 7%, that adds up to $672 per year in tax on food alone.

Clothing: A handful of states — including Pennsylvania, New Jersey, New York (on clothing under $110 per item), and Minnesota — exempt most clothing from sales tax. For families with children, this exemption is financially meaningful.

Prescription medications: Nearly all states exempt prescription drugs from sales tax.

Services: Most states tax physical goods but not services. However, states with broader sales tax bases — including Hawaii, New Mexico, and South Dakota — tax a wider range of services, which is why their effective tax burden can be higher than the headline rate suggests.

Sales Tax and the True Cost of Living

Sales tax rarely shows up in cost-of-living comparisons, but it belongs there. The difference between living in a zero-sales-tax state like Oregon and a high-sales-tax state like Tennessee is not just philosophical — it is a measurable annual cost that compounds over years.

For a household spending $50,000 per year on taxable goods and services:

At 0% combined rate (Oregon, Delaware, Montana, New Hampshire): $0 in sales tax
At 4% combined rate: $2,000 per year
At 7% combined rate: $3,500 per year
At 9.5% combined rate (Louisiana, Tennessee): $4,750 per year

The difference between the zero-tax states and the highest-tax states is $4,750 per year on the same spending. Over ten years, that is $47,500 — enough to matter in any household budget.

This is one of the reasons that looking up the combined sales tax rate for any ZIP code you are considering moving to is a worthwhile five minutes of research. You can do that for any of the 41,700+ ZIP codes in the country at ZipCodePlus.com.

Recent Changes to Watch in 2026

Sales tax rates are not static — states and localities adjust them regularly. A few notable recent changes: ¹ ²

Louisiana raised its state rate from 4.45% to 5% in January 2025, reversing a prior reduction
South Dakota temporarily reduced its state rate from 4.5% to 4.2% starting in 2023 — this reduction is set to expire after 2026, meaning South Dakota’s rate will likely return to 4.5%
West Virginia increased sales tax in Wayne from 6% to 7%
Local jurisdictions across the country make hundreds of rate adjustments annually — which is why address-level lookup is the only reliable way to know your current rate

Sources

Page last updated: April 2026. Sales tax rates change frequently at the state and local level. Always verify current rates for your specific location before making financial decisions.

Tax Foundation, “2026 Sales Tax Rates — State and Local Sales Tax Rates,” January 2026. https://taxfoundation.org/data/all/state/sales-tax-rates/ ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶
Galvix, “US Sales Tax by State in 2026,” April 2026. https://www.galvix.com/sales-tax-by-state/ ↩ ↩² ↩³ ↩⁴
TaxCloud, “Sales Tax Calculator 2026 — Real-Time U.S. Sales Tax Rates,” January 2026. https://taxcloud.com/sales-tax-calculator/ ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶
World Population Review, “Sales Tax by State 2026.” https://worldpopulationreview.com/state-rankings/sales-tax-by-state ↩