The highest sales tax in the US, measured by combined state and local rates, is in Louisiana, where the population-weighted average reached 10.11% as of January 2026.1Tax Foundation. State and Local Sales Tax Rates, 2026 Tennessee (9.61%), Washington (9.51%), Arkansas (9.46%), and Alabama (9.46%) round out the top five. Individual cities go higher still: parts of Los Angeles County charge 11.25%, and several Alabama cities reach 11%. Where you shop inside a state often matters as much as which state you’re in.
The Five Highest-Tax States
Each of the top five gets there a different way. Some start with a high state rate, others let local governments do the heavy lifting.
Louisiana — 10.11%. A 5% state rate paired with parish and municipal taxes that routinely add another 5% or more. Louisiana jumped to the top spot in recent years after raising its state rate, and the variation between parishes is dramatic.2Louisiana Department of Revenue. General Sales and Use Tax
Tennessee — 9.61%. The 7% state rate is the highest base rate in the top five. Every local jurisdiction adds its own tax, capped at 2.75%.3Tennessee Department of Revenue. Sales and Use Tax4Tennessee Department of Revenue. Local Sales Tax
Washington — 9.51%. Washington charges no personal income tax, so its 6.5% state sales tax carries a heavier revenue load. Local additions push the combined average well past that baseline.
Arkansas — 9.46%. The state charges 6.5%. Local rates are often set through municipal elections, and small towns sometimes end up with higher totals than larger cities.
Alabama — 9.46%. Alabama’s 4% state rate sounds modest, but local governments make up the difference aggressively. The maximum combined rate reaches 11%.
Cities That Charge More Than Their States
California hosts some of the steepest city-level rates in the country. Lancaster and Palmdale, both in Los Angeles County, charge 11.25% on taxable purchases. Long Beach sits at 10.50%, and several dozen other California cities cluster between 10.25% and 10.75%.5California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates Chicago sits at 10.25% once Cook County and city taxes stack on the Illinois state rate. Birmingham and other Alabama cities regularly reach 10% or higher.
The dollar impact adds up quickly. A $500 appliance carries $56.25 in tax in Lancaster and nothing in Portland, Oregon. Research has found that a one-percentage-point increase in a city’s local rate leads to a 10-14% increase in cross-border shopping to neighboring lower-tax cities, though the effect fades beyond roughly 30 miles.6National Tax Association. Local Sales Tax, Cross-Border Shopping, and Distance Fifteen minutes in the right direction can save 2% or more on a big purchase.
Why Local Rates Stack So High
A single purchase can trigger taxes from three, four, or five separate authorities. The state collects first. Then the county, the city, and sometimes a transit district or special-purpose zone each add their own fraction. Retailers collect the combined total at the register and the revenue is split afterward.
Transit authorities are a common source of add-ons. Voters approve small fractions of a percent to fund bus systems, rail lines, or road improvements. Stadium districts, school improvement zones, and convention center authorities work the same way. Because these districts can overlap, a store inside both a transit district and a convention center zone charges more than a store two miles away outside those boundaries.
This layering explains how states with unremarkable base rates end up near the top of the rankings. Alabama’s 4% state rate barely registers nationally, but once local jurisdictions pile on another 5% or more, the combined burden rivals states with much higher starting points. Constitutional limits on property tax increases in some states push local governments toward sales tax as their most accessible revenue option, which accelerates the effect.
Where the High Rates Hurt Most: Groceries
The highest combined rates hit hardest at the grocery store. Most states exempt unprepared food, but several top-ranked states do not.
Tennessee taxes groceries at 4% at the state level, and local jurisdictions can add up to 2.75% on top of that.7Tennessee Department of Revenue. Due Dates and Tax Rates A family paying 6% or more on every grocery run feels Tennessee’s ranking far more than someone making occasional electronics purchases. Alabama charges 2% at the state level on groceries, with local taxes on top, though the state temporarily suspended its grocery tax from May through June 2026.
The recent trend is toward eliminating or reducing grocery taxes. Arkansas zeroed out its state grocery tax as of January 2026. Kansas, Oklahoma, and Illinois have all recently eliminated or cut theirs. Idaho (6%) and Mississippi (5% after a recent reduction) still tax groceries at meaningful rates.
Hotels, Meals, and Rental Cars
Certain purchases attract extra taxes that go past the general sales tax. Restaurant meals in many cities carry a separate meals tax on top of the standard rate, typically 0.75% to 4%, which can push the total tax on a dinner bill into the low teens.
Hotels face steeper treatment. State-level lodging taxes alone reach 15% in Connecticut and nearly 15% in the District of Columbia, before any local hotel taxes.8National Conference of State Legislatures. State Lodging Taxes Combine state, county, and city lodging taxes and travelers in major tourist destinations routinely face total rates of 15-20% on their nightly room charges.
Rental cars follow the same pattern, often with additional surcharges for airport facilities, stadium financing, and tourism promotion layered on top of the general sales tax. The logic is straightforward: visitors use local infrastructure but don’t pay property or income taxes locally, so hotels, restaurants, and rental cars are how governments send them a share of the bill.
Five States Charge No Statewide Sales Tax
On the opposite end of the spectrum, five states charge no statewide sales tax at all: Alaska, Delaware, Montana, New Hampshire, and Oregon. For residents and visitors, most retail purchases carry zero tax at the register.
Alaska is a partial exception. The state charges nothing, but it allows local governments to impose their own sales taxes, which can reach 7% or more in certain boroughs and cities. The other four have no state or local general sales tax, which makes them magnets for shoppers willing to make a trip. Delaware in particular draws buyers from Maryland, Pennsylvania, and New Jersey, where combined rates run above 6%. On a $2,000 furniture purchase, the drive saves over $120.
These states fund their governments through other channels. Oregon relies on a relatively high personal income tax. New Hampshire leans heavily on property taxes.
The Use Tax Trap on Out-of-State Purchases
When you buy something from a seller who doesn’t collect your state’s sales tax, you legally owe the equivalent as “use tax.” This comes up most often with private-party purchases, small online retailers below state economic nexus thresholds, and items bought while traveling in a lower-tax state.
Most people have never heard of the obligation. Many states include a use tax line on the state income tax return where you’re supposed to report untaxed purchases and pay what you owe. States generally credit you for tax already paid elsewhere: if you bought furniture in a state with a 5% rate and your home state charges 7%, you owe only the 2% difference.
Enforcement on small purchases has historically been minimal, but states have grown more aggressive with high-value items like vehicles, boats, and jewelry. Some cross-reference vehicle registrations and customs declarations to identify unreported purchases. Penalties for underpayment typically include interest from the original due date plus late-payment charges.
Sales Tax Holidays
About 20 states offer periodic sales tax holidays, giving shoppers a brief window to buy certain items free of state sales tax. The most common type is the back-to-school holiday, covering clothing, school supplies, and computers below a per-item price cap. These typically run for a weekend in late July or August, though Florida stretches its back-to-school holiday across the entire month of August.
Beyond school supplies, some states run emergency preparedness holidays covering generators, batteries, and storm shutters, and energy efficiency holidays for appliances with ENERGY STAR ratings. Florida has made its disaster preparedness exemptions permanent and year-round. Texas offers all three types in separate windows throughout the year.
The savings on any single item are modest. Exempting a $90 pair of shoes from a 7% tax saves $6.30. Families buying school clothes and supplies for multiple children can save meaningfully, and the timing is predictable enough to plan around. In a high-combined-rate state, these holidays are one of the few tools available to reduce what you pay at the register.