Ten States with the Lowest Sales Tax
Living in one of the lowest sales tax states doesn't always mean you'll pay less.


Gabriella Cruz-Martínez
Shopping in one of the states with the lowest sales tax rates can mean saving money.
However, how much you save depends on where in the state you shop and what you buy. That's because some localities impose sales tax rates of their own, and items that are taxable in some states might not be taxable in others.
A sales tax is often imposed on retail goods and services, though some states might grant a few exemptions on groceries and prescription drugs. As a revenue driver, localities might impose an additional tax rate to collect funds for roads, schools, local fire and police departments, or other public services.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
That being said, let’s dive into our list of the 10 states with the lowest sales taxes.
Lowest sales tax states in the U.S.
Keep in mind that localities (cities and counties) in some states can add sales tax separate from the statewide tax rate. Rankings for states with the lowest sales tax are based on the average combined local and state tax rates.
Note: The sales tax rates used in this story are based on 2025 data from the Tax Foundation. This list does not include the four reported states with no sales tax or average combined local taxes.
Washington, D.C., sales tax
State sales tax: 6%
Average local sales tax: 0%
Average combined sales tax: 6%
The District of Columbia makes this list, thanks to the lack of local sales taxes. Shoppers in D.C. will pay a 6% sales tax rate regardless of which part of the district they shop in.
Other good things to know about D.C. sales tax:
- Groceries and prescription drugs are tax-exempt.
- Some items in Washington, D.C., such as restaurant meals and vehicle rentals, are taxed at a rate higher than 6%.
Maryland sales tax
State sales tax: 6%
Average local sales tax: 0%
Average combined sales tax: 6%
One nice thing about tax in Maryland is that you can travel anywhere in the state and not worry about paying a different sales tax rate. It’s 6% everywhere, as counties and cities don't levy their own taxes. Your groceries and prescription drugs aren’t taxable, but you’ll need to pay the 6% tax on clothing and motor vehicle purchases.
Other good things to know about Maryland sales tax:
- Alcoholic beverages are taxed from 9 cents to $1.50 per gallon in Maryland.
- Vacationers could face higher sales taxes, as short-term rental cars are taxed at 11.5%.
Kentucky sales tax
State sales tax: 6%
Average local sales tax: 0%
Average combined sales tax: 6%
With a 6% average combined sales tax rate, Kentucky sales tax ties with three other places on this list. You won’t need to pay any sales tax on groceries or prescription drugs. However, you will pay sales tax when you make motor vehicle and clothing purchases, but that is the case for most U.S. states.
Other good things to know about Kentucky sales tax:
- Last year, three new categories became subject to sales tax. These include jewelry repair, private investigating, even parking.
- On the bright side, Kentucky income tax was slashed from 4.5% to 4% for the 2024 tax year.
Michigan sales tax
State sales tax: 6%
Average local sales tax: 0%
Average combined sales tax: 6%
Michigan is another state with a 6% sales tax rate. The Michigan sales tax is lower for some home energy necessities, such as electricity, natural gas and home heating oil, which are taxed at 4% for residential customers.
Other good things to know about Michigan sales tax:
- The statewide sales tax rate hasn't changed in nearly 30 years.
- Groceries and prescription drugs are tax-exempt.
- Clothing and motor vehicle purchases are taxable.
Virginia sales tax
State sales tax: 5.3%
Average local sales tax: 0.471%
Average combined sales tax: 5.771%
Virginia repealed its portion of sales tax on groceries, but a 1% local grocery tax applies in most areas. Local sales tax on everything else can reach as high as 2.7% in some parts of the Commonwealth, meaning that some Virginians pay an 8% tax rate on fully taxable items.
Other good things to know about Virginia sales tax:
- Personal hygiene products (including diapers) are taxable but at a reduced rate of 1%.
- Prescriptions are tax-exempt.
- There is no sales tax on over-the-counter medication.
- You'll need to pay Virginia sales tax on clothing.
Wisconsin sales tax
State sales tax: 5%
Average local sales tax: 0.696%
Average combined sales tax: 5.696%
The sales tax rate in some parts of Wisconsin are higher than they were last year due to recently enacted Milwaukee sales tax increases. But prescription drugs are tax-exempt statewide. You won’t pay Wisconsin sales tax on groceries, either.
Other good things to know about Wisconsin sales tax:
- The state put an end to sales tax on groceries 17 years ago.
- Wisconsin hasn’t repealed its tax on motor vehicles or clothing, so you’ll still pay state and local tax on these purchases.
Maine sales tax
State sales tax: 5.5%
Average local sales tax: 0%
Average combined sales tax: 5.5%
Grocery staples are tax-exempt in Maine, but the state doesn’t include some healthy snacks such as seeds or dried fruit as staples, so you’ll need to pay Maine sales tax on those. Even though Maine doesn't impose sales tax on most fruits, there is a tax on wild blueberries; those processed in the state come with a tax rate of 1½ cents per pound.
Other good things to know about Maine:
- Maine's low sales tax outperforms many Northeastern states, according to the Tax Foundation.
- As of January 1, 2025, all 501(c)(3) nonprofit organizations in Maine are exempt from sales tax for mission-related purchases.
- Before making exempt purchases, qualifying organizations must apply for and receive an exemption certificate from Maine Revenue Services.
Wyoming
State sales tax: 4%
Average local sales tax: 1.441%
Average combined sales tax rate: 5.441%
Wyoming ranks as the state with the third-lowest sales tax rate in the country. The Cowboy State imposes a 4% sales tax on most purchases across its 23 counties. However, there’s good news: Groceries and prescription drugs are exempt from the tax. Localities might impose an additional sales tax, but it can’t surpass 2%. Still, a 6% maximum Wyoming sales tax would make our list.
Other good things to know about Wyoming:
- The maximum local tax rate is 2%.
- Groceries and prescription drugs are exempt from the state’s sales tax.
- Wyoming is one of the states with the lowest gasoline tax rates at just 24 cents per gallon.
Hawaii sales tax
State sales tax: 4%
Average local sales tax: 0.5
Average combined sales tax: 4.5%
Hawaii has a complex sales tax system with many different levels (county, city, transportation and special purpose districts). Sales tax in Hawaii is passed on to consumers in the final price of products. Businesses often charge more for the products to ensure they don’t lose money, as the tax is based on their gross receipts. There is more disappointing news: You’ll need to pay tax on groceries, which already cost more than the national average.
Other good things to know about Hawaii:
- Prescription drugs are not taxable.
- You still need to pay tax on over-the-counter medications.
- Clothing and motor vehicle purchases are taxable.
Alaska sales tax
State sales tax: 0%
Average local sales tax: 1.821%
Average combined sales tax: 1.821%
There is currently no state sales tax in Alaska. However, localities in the state can impose their own sales taxes, and the average local sales tax rate in Alaska has increased from 1.76% to 1.821% in the last year.
Other good things to know about Alaska sales tax:
- Groceries are subject to local sales taxes.
- Alaska has a maximum sales tax rate of 7.5%.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.
- Gabriella Cruz-MartínezTax Writer
-
Over 50 and Still Paying Student Loans? Here's Some Help
It's the club no one wants to join. But if you are over 50 and still paying student loans, there are ways to tackle both debt and retirement savings.
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)
Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
Homeschoolers: 529 Plan Savings Could Soon Work for You
Savings Accounts A new House GOP bill could change how you save for your child's homeschool education. Find out how.
-
Five ‘Big Beautiful Bill’ Tax Changes to Watch in the Senate
Tax Policy The House passed its version of Trump’s "One Big, Beautiful Bill." Here’s what to look for as Senate Republicans take up the mega legislation.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers Qualify
Tax Breaks To fulfill Trump's campaign promise, House GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?
-
Big GOP Tax Bill Could Change Your Estate Planning for 2025
Tax Law The GOP might extend and increase the higher estate and gift tax exemption and AMT thresholds. What might this mean for your estate plan?
-
Ten Cheapest Places To Live in New York
Property Tax If you’re planning a move in New York, here are the counties with the lowest property tax bills in the Empire State.
-
‘My Etsy Shop is Dead’: Vendors Cry for Help Amid Trump’s Tariffs
Tariffs Small businesses are struggling to thrive as they absorb the Trump administration’s new wave of tariffs.
-
Three Things Star Wars Fans Taught Me About Tax
Tax Tips May the force be with you and your taxes this Star Wars Day 2025.
-
Retirees: Don’t Miss These Valuable State Tax Breaks in 2025
Retirement Planning Selecting the right state for retirement can significantly impact your financial well-being.