Sales Tax by State: Complete Guide for 2026
Five states charge zero sales tax. The highest combined rates top 9.5%. On everyday purchases the difference is negligible, but on a $1,500 laptop, a $4,000 furniture set, or a $25,000 car, the spread between states is hundreds or even thousands of dollars. For remote workers, cross-border shoppers, and anyone making a big purchase, knowing the rates matters.
Here's every state's sales tax rate for 2026, including the often-overlooked local taxes that push the real rate much higher than the state number.
States With No Sales Tax
| State | Sales Tax | Notes |
|---|---|---|
| Alaska | 0% | Some cities charge local tax up to 7.5% |
| Delaware | 0% | No local sales tax either. True 0%. |
| Montana | 0% | Some resort towns charge local tax |
| New Hampshire | 0% | No income tax either |
| Oregon | 0% | Popular for cross-border shopping from WA |
Highest Combined Sales Tax States
These states have the highest average combined state + local rates:
| State | State Rate | Avg. Combined |
|---|---|---|
| Louisiana | 4.45% | 9.55% |
| Tennessee | 7% | 9.548% |
| Arkansas | 6.5% | 9.46% |
| Alabama | 4% | 9.29% |
| Washington | 6.5% | 9.29% |
| Oklahoma | 4.5% | 8.98% |
| California | 7.25% | 8.85% |
| Illinois | 6.25% | 8.84% |
| Kansas | 6.5% | 8.75% |
| Colorado | 2.9% | 7.81% |
Notice Louisiana: the state rate is only 4.45%, but local taxes pile on another 5.1% on average. The state rate alone doesn't tell the full story.
Lowest Sales Tax States (That Still Have One)
| State | State Rate | Avg. Combined |
|---|---|---|
| Hawaii | 4% | 4.44% |
| Wyoming | 4% | 5.36% |
| Wisconsin | 5% | 5.43% |
| Maine | 5.5% | 5.5% |
| Virginia | 4.3% | 5.75% |
| Kentucky | 6% | 6% |
| Maryland | 6% | 6% |
| Michigan | 6% | 6% |
| Idaho | 6% | 6.02% |
What Hannah Learned
She bought the laptop in Portland before leaving (0% sales tax). Saved $146 compared to buying it in Nashville. On the drive, she also learned that groceries are exempt from sales tax in most states, clothing is exempt in some states (Pennsylvania, New Jersey, Minnesota), and prepared food is almost always taxed even in states with food exemptions.
The biggest takeaway: combined local + state rates vary wildly even within a single state. Downtown Seattle is 10.25%. Rural Washington might be 7.7%. Always check the specific city rate, not just the state rate.
When Sales Tax Matters Most
For everyday purchases, a 1–2% difference in sales tax is negligible. But for big purchases, it adds up fast:
| Purchase | Price | 0% State | 6% State | 9.5% State |
|---|---|---|---|---|
| Laptop | $1,500 | $0 | $90 | $143 |
| Furniture set | $4,000 | $0 | $240 | $380 |
| Used car | $25,000 | $0 | $1,500 | $2,375 |
| Engagement ring | $8,000 | $0 | $480 | $760 |
On a $25,000 car, the difference between a 0% and 9.5% state is $2,375. That's worth a road trip.
Frequently Asked Questions
Which state has the highest sales tax?
Louisiana has the highest average combined rate at 9.55%. Tennessee is second at 9.55%. California has the highest state-level base rate at 7.25%.
Do I pay sales tax on online purchases?
Yes. Since the 2018 Supreme Court decision in South Dakota v. Wayfair, most online retailers collect sales tax based on where the item ships to, not where the seller is located.
Is food taxed with sales tax?
It varies by state. Most states exempt unprepared groceries. Prepared food (restaurants, deli items) is taxed almost everywhere. Candy and soda are taxed in some states but not others.