State Sales Tax Rates Ranked for 2026: Where You Pay the Most (and Least)

Published July 23, 2026 · 8 min read

Most people focus on income tax when comparing states — and for good reason. But there is another tax that hits you every time you buy groceries, fill up your gas tank, or pick up new clothes: sales tax. In some states, the combined state and local sales tax rate tops 9.5%, adding nearly $10 on every $100 you spend. In five states, that rate is zero.

Understanding sales tax matters because it directly affects your real purchasing power. Even if two states have identical income taxes, a 9% sales tax state versus a 0% sales tax state can cost a typical household several thousand dollars more per year. Here is every state ranked, with the numbers you actually need.

What Is Sales Tax — and How Does It Work?

Sales tax is a percentage added to the purchase price of goods (and sometimes services) at the point of sale. Unlike income tax, which is deducted from your paycheck, sales tax is collected directly by stores and paid to the state and local governments.

There are two layers of sales tax:

• State sales tax: Set by the state legislature. California’s state rate is 7.25%. Indiana’s is 7%. Oregon’s is 0%.
• Local sales tax: Counties and cities can add their own rate on top. This is why the combined rate in New Orleans, Louisiana can exceed 10% — the city piles on top of the state’s 4.45%.

When you see a “combined sales tax rate” for a state, it is the weighted average of the state rate plus all local rates across that state’s population. Your actual rate depends on exactly where you live and shop. (Tax Foundation — State and Local Sales Tax Rates, 2026)

The 5 States with Zero Sales Tax

Five states charge no state-level sales tax at all:

Oregon, Delaware, Montana, and New Hampshire are the cleanest zero-sales-tax states — no state rate and no local additions. Alaska has no state sales tax but allows municipalities to levy their own, so some Alaskan towns do charge sales tax at the local level.

Note: New Hampshire and Oregon also have no state income tax (New Hampshire taxes investment income only). If you live in either state, you avoid both income and sales taxes at the state level — a rare combination.

The 10 States with the Highest Combined Sales Tax

These states hit consumers the hardest when they spend money:

Notice that Louisiana tops the list even though its state rate (4.45%) is much lower than California’s (7.25%). The reason is local taxes. Louisiana parishes (counties) and municipalities pile on an average of 5.11% in local sales taxes, pushing the combined rate to 9.56%. California’s local additions are far smaller.

Washington deserves special attention: it has no state income tax but a 9.37% combined sales tax. For people with lower incomes who spend most of their paycheck on goods, this can be a significant burden. Use our Washington paycheck calculator to see how the full picture looks for your salary.

All 50 States Ranked by Combined Sales Tax Rate (2026)

Here is the full list, ranked from highest to lowest:

Source: Tax Foundation, State and Local Sales Tax Rates, 2026. Combined rates are population-weighted averages and will vary by exact location.

What Is Often Exempt from Sales Tax?

Even in high-tax states, certain purchases are often exempt from sales tax. The most common exemptions include:

• Groceries: Most states exempt unprepared food from sales tax. But some states (including Tennessee and Alabama) fully tax groceries, which makes their effective rate even higher for low-income households who spend a larger share of income on food.
• Prescription drugs: All 50 states exempt prescription medications from sales tax.
• Clothing: Some states (like Pennsylvania and New Jersey) exempt most clothing. Others tax it at the full rate.
• Agricultural supplies: Most states exempt farming equipment and supplies from sales tax.
• Digital goods: Rules on software, streaming services, and digital downloads vary widely by state and are still evolving.

Tennessee’s high sales tax on groceries is particularly notable. At a combined rate near 9.55% on food, a family spending $800/month on groceries pays an extra $76 per month — or over $900 per year — just in sales tax on their food bill. (Tennessee Department of Revenue)

How Sales Tax Affects Your Real Take-Home Pay

Income tax gets most of the attention, but sales tax is a real drain on spending power. Here is a worked example comparing two states with no state income tax:

Assume a $70,000 salary, single filer, and that you spend $40,000 per year on taxable goods and services (roughly 57% of take-home pay). We compare Oregon vs. Washington — neighboring states with no income tax, but very different sales tax situations.

The Oregon resident keeps about $3,748 more per year in real purchasing power — purely because of the zero sales tax. That is $312 per month more to spend, save, or invest. Over a decade, that gap compounds significantly.

Of course, Oregon has a state income tax (up to 9.9%), while Washington has none. For a $70,000 earner, Oregon’s income tax would be roughly $4,600. So in total, Washington comes out slightly ahead for this income level — but the gap is much smaller than it appears when you look at income tax alone. The lesson: always compare the total tax picture, not just one type.

No Income Tax Doesn’t Always Mean Low Taxes

States have to fund their governments somehow. The nine states with no income tax often make up the difference through higher sales taxes, property taxes, or other fees. Here is how the no-income-tax states compare on sales tax:

Washington and Tennessee have the highest sales taxes among no-income-tax states — meaning residents pay a lot in taxes, just on a different activity (spending rather than earning). New Hampshire stands out as the one state that has neither a broad income tax nor a sales tax, funded largely by property taxes instead.

What This Means for Your Paycheck

Your paycheck calculator shows how much you keep after income taxes. But sales tax determines how far that take-home pay actually goes. Here is how to think about the two together:

• Compare total tax burden, not just income tax. A state with no income tax and 9% sales tax may be more expensive than a state with 5% income tax and 0% sales tax, depending on how much you earn and spend.
• Higher earners benefit more from no-income-tax states. If you earn $200K, avoiding a 9.9% state income tax (like Oregon’s top rate) saves far more than avoiding a 9% sales tax on spending. Lower earners who spend most of their income on goods benefit more from low sales tax.
• Watch out for high local rates. Moving from one county to another within the same state can change your effective sales tax rate significantly. Louisiana has a statewide base rate but some parishes charge over 11% combined.
• Check grocery exemptions. If you live in a high-sales-tax state, find out if groceries are exempt. That one exemption can save a family hundreds of dollars per year.

Use our state paycheck calculators to see your income tax picture, then factor in your state’s sales tax rate when evaluating your total cost of living. You can compare calculators for Texas, California, Florida, New York, and all other states to start.

Sources

• Tax Foundation — State and Local Sales Tax Rates, 2026
• Tennessee Department of Revenue — Sales and Use Tax
• Oregon Department of Revenue — Sales Tax Information
• Washington Department of Revenue — Sales Tax Rates
• Tax Foundation — State Individual Income Tax Rates