10 States With the Highest Sales Taxes
When both state and local taxes are considered, you'll pay more sales tax when shopping in these states.
Back-to-school shopping. Holiday shopping. Impulse buying. Bargain hunting. No matter how or why you're on a shopping spree, don't forget about sales taxes. Otherwise, if you don't plan for this extra cost, your budget is going to be busted before you know it.
Also remember that it's not Uncle Sam who's reaching into your pocket for a few spare coins. It's the state and local governments in your area that are imposing sales tax on the goods and, sometimes, services you purchase every day. And, when you factor in both state and local taxes, the overall sales tax rate where you live can be very high – and the 10 states listed below have the highest average combined state and local sales tax rates in the country.
But, to be fair, hefty sales tax rates don't necessarily tell the whole story when it comes to a state's overall tax burden. While sales taxes in a particular state may be high, other state and local taxes might be on the low end. As a result, a state with a high combined sales tax rate can actually be a very tax-friendly state when all taxes are considered. That's why our list also provides an overview of income and property taxes in the state, as well as our overall "tax-friendliness" rating for middle-class families.
Sales tax values are for 2021 and were compiled by the Tax Foundation. Income tax brackets are for the 2021 tax year, unless otherwise noted. Property tax values are for 2019, which is the most recent data available.
10. New York
Overall Rating for Middle-Class Families: Least tax-friendly
State Sales Tax: 4% state levy. Localities can add as much as 4.875%, and the average combined rate is 8.52%, according to the Tax Foundation. In the New York City metro area, there is an additional 0.375% sales tax to support transit. Clothing and footwear that cost less than $110 (per item or pair) are exempt from sales tax. Groceries and prescription drugs are exempt, too. Motor vehicle sales are taxable, though.
Income Tax Range: Low: 4% (on up to $8,500 of taxable income for single filers and up to $17,150 for married couples filing jointly). High: 10.9% (on taxable income over $25 million, regardless of filing status).
New York City and Yonkers imposed their own income tax. A commuter tax is also imposed on residents of New York City, as well as on residents of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester Counties.
Property Taxes: In the Empire State, the median property tax rate is $1,692 per $100,000 of assessed home value.
For details on other state taxes, see the New York State Tax Guide for Middle-Class Families.
9. Kansas
Overall Rating for Middle-Class Families: Least tax-friendly
State Sales Tax: 6.5% state levy. Localities can add as much as 4%, and the average combined rate is 8.7%, according to the Tax Foundation. These rates also apply to groceries, motor vehicles, clothing and prescription drugs.
Income Tax Range: Low: 3.1% (on $2,501 to $15,000 of taxable income for single filers and $5,001 to $30,000 for joint filers). High: 5.7% (on more than $30,000 of taxable income for single filers and more than $60,000 for joint filers).
Kansas also has an "intangibles tax" levied on unearned income by some localities.
Property Taxes: Kansans who own their homes pay a median property tax rate of $1,369 per $100,000 of assessed home value.
For details on other state taxes, see the Kansas State Tax Guide for Middle-Class Families.
8. California
Overall Rating for Middle-Class Families: Most tax-friendly
State Sales Tax: 7.25% state levy. Localities can add as much as 2.5%, and the average combined rate is 8.82%, according to the Tax Foundation. Groceries and prescription drugs are exempt from these taxes, but clothing and motor vehicles are taxed.
Income Tax Range: Low: 1% (on up to $18,650 of taxable income for married joint filers and up to $9,325 for those filing individually). High: 13.3% (on more than $1,250,738 for married joint filers and $1 million for those filing individually).
Property Taxes: If you're planning to buy a home in the Golden State, the median property tax rate is $729 per $100,000 of assessed home value.
For details on other state taxes, see the California State Tax Guide for Middle-Class Families.
7. Illinois
Overall Rating for Middle-Class Families: Least tax-friendly
State Sales Tax: 6.25% state levy. Localities can add as much as 4.75%, and the average combined rate is 8.83%, according to the Tax Foundation. Food and prescription drugs are taxed at only 1% by the state. Clothing and motor vehicles are fully taxed.
Income Tax Range: There is a flat rate of 4.95% of federal adjusted gross income after modifications.
Property Taxes: For homeowners in Illinois, the median property tax rate is $2,165 per $100,000 of assessed home value – the second highest in our round-up.
For details on other state taxes, see the Illinois State Tax Guide for Middle-Class Families.
6. Oklahoma
Overall Rating for Middle-Class Families: Not tax-friendly
State Sales Tax: 4.5% state levy. Localities can add as much as 7%, and the average combined rate is 8.95%, according to the Tax Foundation. Prescription drugs are exempt and motor vehicles are taxed at a rate of 1.25% (a 3.25% excise tax also applies). Grocery items and clothing are taxable at 4.5%, plus local taxes.
Income Tax Range: Low: 0.5% (on up to $1,000 of taxable income for single filers and up to $2,000 for married joint filers). High: 5% (on taxable income over $7,200 for single filers and over $12,200 for married joint filers). (Starting in 2022, the lowest rate will be 0.25% and the highest rate will be 4.75%.)
Property Taxes: For Oklahomans who own a home, the median property tax rate is $869 per $100,000 of assessed home value.
For details on other state taxes, see the Oklahoma State Tax Guide for Middle-Class Families.
5. Alabama
Overall Rating for Middle-Class Families: Tax-friendly
State Sales Tax: 4% state levy. Localities can add as much as 7.5% to that, and the average combined rate is 9.22%, according to the Tax Foundation. Prescription drugs are exempt. Groceries and clothing are fully taxable, while motor vehicles are taxed at a reduced rate of 2% (additional local taxes may apply).
Income Tax Range: Low: 2% (on up to $1,000 of taxable income for married joint filers and up to $500 for all others). High: 5% (on more than $6,000 of taxable income for married joint filers and more than $3,000 for all others).
Some Alabama municipalities also impose occupational taxes on salaries and wages.
Property Taxes: In Alabama, the median property tax rate is $395 per $100,000 of assessed home value – the lowest on our list.
For details on other state taxes, see the Alabama State Tax Guide for Middle-Class Families.
4. Washington
Overall Rating for Middle-Class Families: Most tax-friendly
State Sales Tax: 6.5% state levy. Municipalities can add up to 4% to that, with the average combined rate at 9.29%, according to the Tax Foundation. Grocery items and prescription drugs are exempt. Clothing is taxable, as are motor vehicles. However, there’s an additional 0.3% tax on sales of motor vehicles.
Income Tax Range: Washington has no state income tax.
Property Taxes: Home buyers in the Evergreen State can expect to pay a median property tax rate of $929 per $100,000 of assessed home value.
For details on other state taxes, see the Washington State Tax Guide for Middle-Class Families.
3. Arkansas
Overall Rating for Middle-Class Families: Mixed tax picture
State Sales Tax: 6.5% state levy. Localities can add as much as 6.125%, and the average combined rate is 9.48%, according to the Tax Foundation. Prescription drugs are exempt. Grocery items are taxed at 0.125% (additional local taxes may apply). Motor vehicles are taxed if the purchase price is $4,000 or more (7% tax rate in Texarkana). However, starting in 2022, the rate on sales of used motor vehicles priced between $4,000 and $10,000 will only be 3.5%. Clothing is taxed at the standard rate.
Income Tax Range: Low: 2% (on taxable income from $4,500 to $8,899 for taxpayers with net income less than $22,200), 0.75% (on first $4,499 of taxable income for taxpayers with net income from $22,200 to $79,300), or 2% (on first $4,000 of taxable income for taxpayers with net income over $79,300). High: 3.4% (on taxable income from $13,400 to $22,199 for taxpayers with net income less than $22,200), 5.9% (on taxable income from $37,200 to $79,300 for taxpayers with net income from $22,200 to $79,300), or 5.9% (on taxable income over $8,000 for taxpayers with net income over $79,300).
A "bracket adjustment" of between $40 and $440 is subtracted from the amount of tax due for taxpayers with net income from $79,301 to $84,600.
Property Taxes: For homeowners in the Natural State, the median property tax rate is $612 per $100,000 of assessed home value.
For details on other state taxes, see the Arkansas State Tax Guide for Middle-Class Families.
2. Tennessee
Overall Rating for Middle-Class Families: Most tax-friendly
State Sales Tax: 7% state levy. There's also an additional state tax of 2.75% on sales of single items that applies to the portion of the sales price from $1,600 to $3,200. Localities can add up to 2.75%, with an average combined rate of 9.547%, according to the Tax Foundation. Groceries are taxed at 4% by the state, in addition to any additional local taxes. Clothing is taxed at the standard rate. Motor vehicles are taxed at the basic 7% rate, plus the additional 2.75% on purchases between $1,600 and $3,200. There’s no tax on prescription drugs.
Income Tax Range: There's no state income tax in Tennessee. (Interest and dividend income was taxed before 2021.)
Property Taxes: In Tennessee, the median property tax rate is $636 per $100,000 of assessed home value.
For details on other state taxes, see the Tennessee State Tax Guide for Middle-Class Families.
1. Louisiana
Overall Rating for Middle-Class Families: Tax-friendly
State Sales Tax: 4.45% state levy. Localities can add as much as 7%, and the average combined rate is 9.55%, according to the Tax Foundation. Groceries and prescription drugs are exempt from the state's sales tax, but localities may tax these. Clothing and motor vehicles are taxable.
Income Tax Range: Low: 2% (on $12,500 or less of taxable income for individuals, $25,000 for joint filers). High: 6% (on more than $50,000 of taxable income, $100,000 for joint filers).
(Note: On October 9, 2021, Louisiana voters will decide whether to cap the maximum rate at 4.75% starting in 2022. If that ballot initiative is approved, Louisiana's lowest personal income tax rate will be 1.85% and it's highest rate will be 4.75% beginning in 2022. In addition, each personal income tax rate will be reduced beginning February 1, 2024, and each February 1 thereafter through 2034, if the prior fiscal year's actual individual income tax collections exceed the actual tax collections for the fiscal year ending June 30, 2019, adjusted annually by the growth factor provided for in the state constitution.)
Property Taxes: The median property tax rate in Louisiana is $534 per $100,000 of assessed home value.
For details on other state taxes, see the Louisiana State Tax Guide for Middle-Class Families.
