State and Local Sales Tax Rates, Midyear 2016

Source: Jared Walczak, Scott Drenkard, Fiscal Fact, No. 515, July 2016

Key Findings
– Forty-five states and the District of Columbia collect statewide sales taxes.
– Local sales taxes are collected in 38 states.
– The five states with the highest average combined state and local sales tax rates are Louisiana (9.99 percent), Tennessee (9.45 percent), Arkansas (9.30 percent), Alabama (8.97 percent), and Washington (8.92 percent).
– Sales tax rates differ by state, but sales tax bases also impact how much revenue is collected from a tax and how the tax affects the economy.
– Sales tax rate differentials can induce consumers to shop across borders or buy products online.