Sales tax

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State tax policy
Personal income tax
Sales tax
Corporate income tax
Excise tax

Sales tax is one of the primary taxes levied by state governments. Sales tax is applied to goods and services at the point of purchase. It is most often collected by the seller of the good or service and then transferred to the taxing authority.[1]

Historically, general sales or use tax has been a chief element of state revenue systems. As of 2017, sales tax revenue comprised roughly one third of the total tax revenue collected by the states. The lucrativeness of the sale tax for states had, however, diminished somewhat before this. In 1998, for the first time since the Great Depression, sales tax accounted for a smaller share of the states' tax collections than personal income tax.[2]

## Contents

* 1 Sales tax rates
* 1.1 2017
* 1.1.1 Combined tax rates
* 1.1.2 Sales tax rates
* 1.2 2015
* 1.2.1 Combined tax rates
* 1.2.2 State tax rates
* 1.3 2014
* 2 See also
* 3 External links
* 4 Footnotes

## Sales tax rates[edit]

### 2017[edit]

#### Combined tax rates[edit]

Almost all states employed a statewide sales tax, which ranged from 2.9 percent in Colorado to 7.25 percent in California. Only five states did not have a statewide sales tax. Additionally, many states allowed the levying of additional local sales taxes, which were then added to the state's tax. The table below displays the state tax rates, average local tax rates, and combined tax rates for all 50 states in 2017.

Combined sales tax rates, 2017

State  | State sales tax  | Average local sales tax  | Combined
Alabama | 4.00% | 5.01% | 9.01%
Alaska | 0.00% | 1.76% | 1.76%
Arizona | 5.60% | 2.65% | 8.25%
Arkansas | 6.50% | 2.80% | 9.30%
California | 7.25% | 1.00% | 8.25%
Colorado | 2.90% | 4.60% | 7.50%
Connecticut | 6.35% | 0.00% | 6.35%
Delaware | 0.00% | 0.00% | 0.00%
Florida | 6.00% | 0.80% | 6.80%
Georgia | 4.00% | 3.00% | 7.00%
Hawaii | 4.00% | 0.35% | 4.35%
Idaho | 6.00% | 0.03% | 6.03%
Illinois | 6.25% | 2.39% | 8.64%
Indiana | 7.00% | 0.00% | 7.00%
Iowa | 6.00% | 0.80% | 6.80%
Kansas | 6.50% | 2.12% | 8.62%
Kentucky | 6.00% | 0.00% | 6.00%
Louisiana | 5.00% | 4.98% | 9.98%
Maine | 5.50% | 0.00% | 5.50%
Maryland | 6.00% | 0.00% | 6.00%
Massachusetts | 6.25% | 0.00% | 6.25%
Michigan | 6.00% | 0.00% | 6.00%
Minnesota | 6.88% | 0.42% | 7.30%
Mississippi | 7.00% | 0.07% | 7.07%
Missouri | 4.23% | 3.66% | 7.89%
Montana | 0.00% | 0.00% | 0.00%
Nebraska | 5.50% | 1.39% | 6.89%
Nevada | 6.85% | 1.13% | 7.98%
New Hampshire | 0.00% | 0.00% | 0.00%
New Jersey | 6.88% | -0.03% | 6.85%
New Mexico | 5.13% | 2.43% | 7.55%
New York | 4.00% | 4.49% | 8.49%
North Carolina | 4.75% | 2.15% | 6.90%
North Dakota | 5.00% | 1.78% | 6.78%
Ohio | 5.75% | 1.39% | 7.14%
Oklahoma | 4.50% | 4.36% | 8.86%
Oregon | 0.00% | 0.00% | 0.00%
Pennsylvania | 6.00% | 0.34% | 6.34%
Rhode Island | 7.00% | 0.00% | 7.00%
South Carolina | 6.00% | 1.22% | 7.22%
South Dakota | 4.50% | 1.89% | 6.39%
Tennessee | 7.00% | 2.46% | 9.46%
Texas | 6.25% | 1.94% | 8.19%
Utah | 5.95% | 0.81% | 6.76%
Vermont | 6.00% | 0.18% | 6.18%
Virginia | 5.30% | 0.33% | 5.63%
Washington | 6.50% | 2.42% | 8.92%
West Virginia | 6.00% | 0.29% | 6.29%
Wisconsin | 5.00% | 0.42% | 5.42%
Wyoming | 4.00% | 1.40% | 5.40%
Note: For full annotations, see the source below.
Source: The Tax Foundation, "State and local sales tax rates, 2017," accessed October 26, 2017

#### Sales tax rates[edit]

The table below summarizes sales tax rates for the 50 states in 2017 as well as their policies with respect to types of items commonly exempted from sales tax (i.e., food, prescription drugs and nonprescription drugs).[3]

Sales tax rates, 2017

State  | Sales tax rate  | Exemption status
Food  | Prescription drugs  | Nonprescription drugs
Alabama | 4.0% | Taxable | Exempt | Taxable
Alaska | 0.0% | No state sales tax | No state sales tax | No state sales tax
Arizona | 5.6% | Exempt | Exempt | Taxable
Arkansas | 6.5% | 1.5 | Exempt | Taxable
California | 7.3% | Exempt | Exempt | Taxable
Colorado | 2.9% | Exempt | Exempt | Taxable
Connecticut | 6.4% | Exempt | Exempt | Exempt
Delaware | 0.0% | No state sales tax | No state sales tax | No state sales tax
Florida | 6.0% | Exempt | Exempt | Exempt
Georgia | 4.0% | Exempt | Exempt | Taxable
Hawaii | 4.0% | Taxable | Exempt | Taxable
Idaho | 6.0% | Taxable | Exempt | Taxable
Illinois | 6.3% | 1 | 1 | 1
Indiana | 7.0% | Exempt | Exempt | Taxable
Iowa | 6.0% | Exempt | Exempt | Taxable
Kansas | 6.5% | Taxable | Exempt | Taxable
Kentucky | 6.0% | Exempt | Exempt | Taxable
Louisiana | 5.0% | Exempt | Exempt | Taxable
Maine | 5.5% | Exempt | Exempt | Taxable
Maryland | 6.0% | Exempt | Exempt | Exempt
Massachusetts | 6.3% | Exempt | Exempt | Taxable
Michigan | 6.0% | Exempt | Exempt | Taxable
Minnesota | 6.9% | Exempt | Exempt | Exempt
Mississippi | 7.0% | Taxable | Exempt | Taxable
Missouri | 4.2% | 1.225 | Exempt | Taxable
Montana | 0.0% | No state sales tax | No state sales tax | No state sales tax
Nebraska | 5.5% | Exempt | Exempt | Taxable
Nevada | 6.9% | Exempt | Exempt | Taxable
New Hampshire | 0.0% | No state sales tax | No state sales tax | No state sales tax
New Jersey | 6.9% | Exempt | Exempt | Exempt
New Mexico | 5.1% | Exempt | Exempt | Taxable
New York | 4.0% | Exempt | Exempt | Exempt
North Carolina | 4.8% | Exempt | Exempt | Taxable
North Dakota | 5.0% | Exempt | Exempt | Taxable
Ohio | 5.8% | Exempt | Exempt | Taxable
Oklahoma | 4.5% | Taxable | Exempt | Taxable
Oregon | 0.0% | No state sales tax | No state sales tax | No state sales tax
Pennsylvania | 6.0% | Exempt | Exempt | Exempt
Rhode Island | 7.0% | Exempt | Exempt | Taxable
South Carolina | 6.0% | Exempt | Exempt | Taxable
South Dakota | 4.5% | Taxable | Exempt | Taxable
Tennessee | 7.0% | 5 | Exempt | Taxable
Texas | 6.3% | Exempt | Exempt | Exempt
Utah | 6.0% | 3 | Exempt | Taxable
Vermont | 6.0% | Exempt | Exempt | Exempt
Virginia | 5.3% | 2.5 | Exempt | Exempt
Washington | 6.5% | Exempt | Exempt | Taxable
West Virginia | 6.0% | Exempt | Exempt | Taxable
Wisconsin | 5.0% | Exempt | Exempt | Taxable
Wyoming | 4.0% | Exempt | Exempt | Taxable
Source: Tax Policy Center, "Sales Tax Rates 2000-2017," accessed October 26, 2017

### 2015[edit]

#### Combined tax rates[edit]

The table below displays the state tax rates, average local tax rates, and combined tax rates for all 50 states and the District of Columbia in 2015.

Combined sales tax rates, 2015

State  | State sales tax  | Average local sales tax (a)  | Combined  | Ranking
Alabama | 4.00% | 4.91% | 8.91% | 3
Alaska | None | 1.76% | 1.76% | 46
Arizona | 5.60% | 2.57% | 8.17% | 11
Arkansas | 6.50% | 2.76% | 9.26% | 2
California (b) | 7.50% | 0.94% | 8.44% | 8
Colorado | 2.90% | 4.54% | 7.44% | 15
Connecticut | 6.35% | None | 6.35% | 31
Delaware | None | None | None | 47
Florida | 6.00% | 0.65% | 6.65% | 29
Georgia | 4.00% | 2.96% | 6.96% | 24
Hawaii (c) | 4.00% | 0.35% | 4.35% | 45
Idaho | 6.00% | 0.01% | 6.01% | 36
Illinois | 6.25% | 1.94% | 8.19% | 10
Indiana | 7.00% | None | 7.00% | 21
Iowa | 6.00% | 0.78% | 6.78% | 27
Kansas | 6.15% | 2.05% | 8.20% | 9
Kentucky | 6.00% | None | 6.00% | 37
Louisiana | 4.00% | 4.91% | 8.91% | 4
Maine | 5.50% | None | 5.50% | 42
Maryland | 6.00% | None | 6.00% | 37
Massachusetts | 6.25% | None | 6.25% | 33
Michigan | 6.00% | None | 6.00% | 37
Minnesota | 6.88% | 0.33% | 7.20% | 17
Mississippi | 7.00% | 0.07% | 7.07% | 20
Missouri | 4.23% | 3.58% | 7.81% | 14
Montana (d) | None | None | None | 47
Nebraska | 5.50% | 1.30% | 6.80% | 26
Nevada | 6.85% | 1.09% | 7.94% | 13
New Hampshire | None | None | None | 47
New Jersey (e) | 7.00% | -0.03% | 6.97% | 23
New Mexico (c) | 5.13% | 2.22% | 7.35% | 16
New York | 4.00% | 4.48% | 8.48% | 7
North Carolina | 4.75% | 2.15% | 6.90% | 25
North Dakota | 5.00% | 1.56% | 6.56% | 30
Ohio | 5.75% | 1.35% | 7.10% | 19
Oklahoma | 4.50% | 4.27% | 8.77% | 6
Oregon | None | None | None | 47
Pennsylvania | 6.00% | 0.34% | 6.34% | 32
Rhode Island | 7.00% | None | 7.00% | 21
South Carolina | 6.00% | 1.13% | 7.13% | 18
South Dakota (c) | 4.00% | 1.83% | 5.83% | 40
Tennessee | 7.00% | 2.45% | 9.45% | 1
Texas | 6.25% | 1.80% | 8.05% | 12
Utah (b) | 5.95% | 0.73% | 6.68% | 28
Vermont | 6.00% | 0.14% | 6.14% | 34
Virginia (b) | 5.30% | 0.33% | 5.63% | 41
Washington | 6.50% | 2.39% | 8.89% | 5
West Virginia | 6.00% | 0.07% | 6.07% | 35
Wisconsin | 5.00% | 0.43% | 5.43% | 44
Wyoming | 4.00% | 1.47% | 5.47% | 43
Washington, D.C. | 5.75% | None | 5.75% | N/A
"(a) City, county, and municipal rates vary. These rates are weighted by population to compute an average local tax rate.

(b) Three states levy mandatory, statewide, local add-on sales taxes: California (1%), Utah (1.25%), Virginia (1%). We include these in their state sales taxes.
(c) The sales taxes in Hawaii, New Mexico, and South Dakota have broad bases that include many services.
(d) Due to data limitations, this table does not include sales taxes in local resort areas in Montana.
(e) Salem County is not subject to the statewide sales tax rate and collects a total rate of 3.5%. New Jersey's average local rate is represented as a negative."
Source: The Tax Foundation, "State and local sales tax rates, 2015," accessed November 5, 2015

#### State tax rates[edit]

The table below lists the state sales tax rates for all 50 states, as well as the status of items commonly exempted from sales tax. Of the 50 states (and Washington, D.C.), only five did not collect a general sales tax. For the remaining states that did collect sales tax, rates ranged from 2.9 percent in Colorado to 7.5 percent in California. The numerical rankings listed have been tallied by excluding the states that did not collect sales tax and assigning the same numerical ranking to states with the same rate. Because several states share common rates, the rankings range from 1, indicating the lowest sales tax rate, to 22, which indicates the highest.[4]

Sales tax rates, 2015

State  | Sales tax rate  | Exemption status  | Ranking
Food  | Prescription drugs  | Nonprescription drugs
Alabama | 4 | Taxable | Exempt | Taxable | 2
Alaska | No sales tax
Arizona | 5.6 | Exempt | Exempt | Taxable | 11
Arkansas | 6.5 | 1.54 | Exempt | Taxable | 18
California3 | 7.5 | Exempt | Exempt | Taxable | 22
Colorado | 2.9 | Exempt | Exempt | Taxable | 1
Connecticut | 6.35 | Exempt | Exempt | Taxable | 17
Delaware | No sales tax
District of Columbia | 5.75 | Exempt | Exempt | Exempt | 12
Florida | 6 | Exempt | Exempt | Exempt | 14
Georgia | 4 | Exempt 4 | Exempt | Taxable | 2
Hawaii | 4 | Taxable | Exempt | Taxable | 2
Idaho | 6 | Taxable | Exempt | Taxable | 14
Illinois | 6.25 | 1 | 1 | 1 | 16
Indiana | 7 | Exempt | Exempt | Taxable | 21
Iowa | 6 | Exempt | Exempt | Taxable | 14
Kansas | 6.15 | Taxable | Exempt | Taxable | 15
Kentucky | 6 | Exempt | Exempt | Taxable | 14
Louisiana | 4 | Exempt 4 | Exempt | Taxable | 2
Maine | 5.5 | Exempt | Exempt | Taxable | 9
Maryland | 6 | Exempt | Exempt | Exempt | 14
Massachusetts | 6.25 | Exempt | Exempt | Taxable | 16
Michigan | 6 | Exempt | Exempt | Taxable | 14
Minnesota | 6.875 | Exempt | Exempt | Exempt | 20
Mississippi | 7 | Taxable | Exempt | Taxable | 21
Missouri | 4.225 | 1.225 | Exempt | Taxable | 3
Montana | No sales tax
Nebraska | 5.5 | Exempt | Exempt | Taxable | 10
Nevada | 6.85 5 | Exempt | Exempt | Taxable | 19
New Hampshire | No sales tax
New Jersey | 7 | Exempt | Exempt | Exempt | 21
New Mexico | 5.125 | Exempt | Exempt | Taxable | 7
New York | 4 | Exempt | Exempt | Exempt | 2
North Carolina | 4.75 | Exempt 4 | Exempt | Taxable | 5
North Dakota | 5 | Exempt | Exempt | Taxable | 6
Ohio | 5.75 | Exempt | Exempt | Taxable | 12
Oklahoma | 4.5 | Taxable | Exempt | Taxable | 4
Oregon | No sales tax
Pennsylvania | 6 | Exempt | Exempt | Exempt | 14
Rhode Island | 7 | Exempt | Exempt | Taxable | 21
South Carolina | 6 | Exempt | Exempt | Taxable | 14
South Dakota | 4 | Taxable | Exempt | Taxable | 2
Tennessee | 7 | 5.00% | Exempt | Taxable | 21
Texas | 6.25 | Exempt | Exempt | Exempt | 16
Utah | 5.95 4 | 1.75 4 | Exempt | Taxable | 13
Vermont | 6 | Exempt | Exempt | Exempt | 14
Virginia | 5.3 2 | 2.5 2 | Exempt | Exempt | 8
Washington | 6.5 | Exempt | Exempt | Taxable | 18
West Virginia | 6 | Exempt | Exempt | Taxable | 14
Wisconsin | 5 | Exempt | Exempt | Taxable | 6
Wyoming | 4 | Exempt | Exempt | Taxable | 2
1"Some states tax food but allow a rebate or income tax credit to compensate poor households. They are Hawaii, Idaho, Kansas, Oklahoma, Oklahoma and South Dakota."
2"Includes statewide 1.00 percent tax levied by local governments in Virginia."
3"Tax rate may be adjusted annually according to a formula based on balances in the unappropriated general fund and the school foundation fund."
4"Food sales subject to local taxes. Includes a statewide 1.25 percent tax levied by local governments in Utah."
5"Nevada sales tax rate scheduled to decrease to 6.5 percent on July 1, 2015."
Source: Tax Policy Center, "Sales Tax Rates 2000-2015," accessed September 30, 2015

### 2014[edit]

The table below lists the sales tax rates for all 50 states as of 2014, as well as the status of items commonly exempted from sales tax. Of the 50 states (and Washington, D.C.), only five did not collect a general sales tax. For the remaining states that did collect sales tax, rates ranged from 2.9 percent in Colorado to 7.5 percent in California. The numerical rankings listed were tallied by excluding the states that did not collect sales tax and assigning the same numerical ranking to states with the same rate. Because several states shared common rates, the rankings range from 1, indicating the lowest sales tax rate, to 22, which indicates the highest.[5]

Sales tax rates, 2014

State  | Sales tax rate  | Exemption status  | Ranking
Food  | Prescription drugs  | Nonprescription drugs
Alabama | 4.00 | Taxable | Exempt | Taxable | 2
Alaska | No sales tax
Arizona | 5.6 | Exempt | Exempt | Taxable | 11
Arkansas | 6.5 | 1.54 | Exempt | Taxable | 18
California3 | 7.5 | Exempt | Exempt | Taxable | 22
Colorado | 2.9 | Exempt | Exempt | Taxable | 1
Connecticut | 6.35 | Exempt | Exempt | Taxable | 17
Delaware | No sales tax
District of Columbia | 5.75 | Exempt | Exempt | Exempt | 12
Florida | 6 | Exempt | Exempt | Exempt | 14
Georgia | 4 | Exempt 4 | Exempt | Taxable | 2
Hawaii | 4 | Taxable | Exempt | Taxable | 2
Idaho | 6 | Taxable | Exempt | Taxable | 14
Illinois | 6.25 | 1 | 1 | 1 | 16
Indiana | 7 | Exempt | Exempt | Taxable | 21
Iowa | 6 | Exempt | Exempt | Taxable | 14
Kansas | 6.15 | Taxable | Exempt | Taxable | 15
Kentucky | 6 | Exempt | Exempt | Taxable | 14
Louisiana | 4 | Exempt 4 | Exempt | Taxable | 2
Maine | 5.5 | Exempt | Exempt | Taxable | 9
Maryland | 6 | Exempt | Exempt | Exempt | 14
Massachusetts | 6.25 | Exempt | Exempt | Taxable | 16
Michigan | 6 | Exempt | Exempt | Taxable | 14
Minnesota | 6.875 | Exempt | Exempt | Exempt | 20
Mississippi | 7 | Taxable | Exempt | Taxable | 21
Missouri | 4.225 | 1.225 | Exempt | Taxable | 3
Montana | No sales tax
Nebraska | 5.5 | Exempt | Exempt | Taxable | 10
Nevada | 6.85 5 | Exempt | Exempt | Taxable | 19
New Hampshire | No sales tax
New Jersey | 7 | Exempt | Exempt | Exempt | 21
New Mexico | 5.125 | Exempt | Exempt | Taxable | 7
New York | 4 | Exempt | Exempt | Exempt | 2
North Carolina | 4.75 | Exempt 4 | Exempt | Taxable | 5
North Dakota | 5 | Exempt | Exempt | Taxable | 6
Ohio | 5.75 | Exempt | Exempt | Taxable | 12
Oklahoma | 4.5 | Taxable | Exempt | Taxable | 4
Oregon | No sales tax
Pennsylvania | 6 | Exempt | Exempt | Exempt | 14
Rhode Island | 7 | Exempt | Exempt | Taxable | 21
South Carolina | 6 | Exempt | Exempt | Taxable | 14
South Dakota | 4 | Taxable | Exempt | Taxable | 2
Tennessee | 7 | 5.00% | Exempt | Taxable | 21
Texas | 6.25 | Exempt | Exempt | Exempt | 16
Utah | 5.95 4 | 1.75 4 | Exempt | Taxable | 13
Vermont | 6 | Exempt | Exempt | Exempt | 14
Virginia | 5.3 2 | 2.5 2 | Exempt | Exempt | 8
Washington | 6.5 | Exempt | Exempt | Taxable | 18
West Virginia | 6 | Exempt | Exempt | Taxable | 14
Wisconsin | 5 | Exempt | Exempt | Taxable | 6
Wyoming | 4 | Exempt | Exempt | Taxable | 2
1"Some states tax food but allow a rebate or income tax credit to compensate poor households. They are Hawaii, Idaho, Kansas, Oklahoma, Oklahoma and South Dakota."
2"Includes statewide 1.00 percent tax levied by local governments in Virginia."
3"Tax rate may be adjusted annually according to a formula based on balances in the unappropriated general fund and the school foundation fund."
4"Food sales subject to local taxes. Includes a statewide 1.25 percent tax levied by local governments in Utah."
5"Nevada sales tax rate scheduled to decrease to 6.5 percent on July 1, 2015."
Source: Tax Policy Center, "Sales Tax Rates 2000-2014," June 2, 2014

## See also[edit]

* Taxes on the ballot

## External links[edit]

* Search Google News for this topic
* Tax Policy Center
* Federation of Tax Administrators
* Tax Foundation

## Footnotes[edit]

1. ↑ Investopedia, "Sales Tax," accessed September 26, 2014
2. ↑ Brunori, D. (2011). State Tax Policy: A Political Perspective. Washington, D.C.: The Urban Institute Press
3. ↑ Tax Policy Center, "Sales Tax Rates 2000-2017," accessed October 26, 2017
4. ↑ Tax Policy Center, "Sales Tax Rates 2000-2015," accessed September 30, 2015
5. ↑ Tax Policy Center, "Sales Tax Rates 2000-2014," June 2, 2014

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