The 19 States with the Most Painful Sales Taxes

When it comes to sales tax, not all states are created equal. Some states charge significantly higher rates than others, impacting your wallet more than you might realize. Here’s a look at 19 states where the sales tax might be making a bigger dent in your budget.

1. Tennessee

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Tennessee leads the nation with a combined state and local sales tax rate averaging 9.55%. That means nearly an additional dime for every dollar spent on taxable goods.

2. Louisiana

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Louisiana follows closely with an average combined rate of 9.52%. Despite a lower state rate of 4.45%, local jurisdictions can add taxes that nearly double the rate.

3. Arkansas

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With a combined average rate of 9.51%, Arkansas residents feel the pinch at checkout, particularly because of the high local rates that augment the state’s 6.5% sales tax.

4. Washington

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In Washington State, the combined average sales tax rate is 9.23%. The state rate is 6.5%, but local rates can be as high as 4%, pushing the total much higher.

5. Alabama

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Alabama’s combined sales tax rate averages around 9.22%. The state’s base rate is 4%, but additional local levies make it one of the highest in the country.

6. Oklahoma

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Oklahoma has an average combined rate of 8.95%. The state imposes a 4.5% sales tax, with cities and counties adding significant additional taxes.

7. Illinois

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Illinois residents face a combined rate averaging 8.83%. Chicago, in particular, has one of the highest rates in the nation when you factor in city sales taxes.

8. Kansas

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Kansas has an average combined sales tax rate of 8.69%. The state rate is 6.5%, but local taxes can significantly increase the total paid by consumers.

9. New York

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New York’s average combined rate stands at 8.52%. While the state rate is 4%, NYC and other localities impose additional taxes that can be steep.

10. California

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Despite a high state sales tax of 7.25%, the average combined rate in California is 8.82% due to various local rates.

11. Arizona

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Arizona has a combined state and local rate of 8.4%. The state tax is relatively modest at 5.6%, but local taxes take a hefty toll.

12. Texas

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In Texas, the combined average sales tax rate is 8.19%. The state itself charges a 6.25% rate, with local jurisdictions adding up to 2%.

13. Nevada

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Nevada’s combined rate averages around 8.23%. The state rate is 6.85%, with local rates contributing to the increased burden on consumers.

14. Missouri

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Missouri’s average combined sales tax rate is 8.25%. St. Louis and Kansas City, in particular, have higher local rates that push up the average.

15. New Mexico

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With an average combined rate of 7.82%, New Mexico’s sales tax includes a state rate of 5.125% plus local surcharges.

16. Minnesota

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Minnesota has a 7.88% combined average rate. The state sales tax is 6.875%, with local taxes making up the remainder.

17. Colorado

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Colorado has a relatively low state rate of 2.9%, but the average combined rate is 7.72% due to various local taxes.

18. South Carolina

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In South Carolina, the average combined sales tax rate is 7.46%, with the state imposing a 6% rate and local areas adding more.

19. Indiana

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Indiana rounds out the list with a combined sales tax rate of 7%. The state rate here is uniform, without any local sales tax additions.

Paying Attention Pays Off

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Navigating sales tax nuances can help you budget better, especially if you’re planning large purchases. Understanding these rates is essential for making informed financial decisions—after all, every penny saved is a penny earned!

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.

For transparency, this content was partly developed with AI assistance and carefully curated by an experienced editor to be informative and ensure accuracy.

The images used are for illustrative purposes only and may not represent the actual people or places mentioned in the article.