![]() ![]() The five states with the highest average combined state and local sales tax rates are Tennessee (9.548 percent), Louisiana (9.547 percent), Arkansas (9.44 percent), Washington (9.40 percent), and Alabama (9.24 percent). Of these, only Alaska allows localities to impose local sales taxes. Combined Ratesįive states forego statewide sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon. ![]() Table 1 provides a full state-by-state listing of state and local sales tax rates. This report provides a population-weighted average of local sales taxes as of July 1, 2023, to give a sense of the average local rate for each state. These local rates can be substantial, and some states with moderate statewide sales tax rates actually impose quite high combined state and local rates compared to other states. They also benefit from being more pro-growth than the other major state tax, the individual income tax, because they introduce fewer economic distortions.įorty-five states impose state-level sales taxes, while consumers also face local sales taxes in 38 states, including Alaska, which does not impose a statewide tax. Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections). Sales tax rate differentials can induce consumers to shop across borders or buy products online.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.South Dakota cut its state sales tax rate from 4.5 to 4.2 percent effective July 2023, the most recent statewide rate reduction since New Mexico trimmed its sales tax rate from 5.125 percent to 5 percent in July 2022.The five states with the highest average combined state and local sales tax rates are Tennessee (9.548 percent), Louisiana (9.547 percent), Arkansas (9.44 percent), Washington (9.40 percent), and Alabama (9.24 percent).In some cases, they can rival or even exceed state rates. Local sales taxes are collected in 38 states.Forty-five states and the District of Columbia collect statewide sales taxes. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |