Sales Tax Rates by State for 2026

State and local sales tax rates, July 1, 2026

"Avg local" is a population-weighted average of local rates. Your actual rate depends on where you buy, or where the item is delivered.

States with no sales tax

Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Only Alaska lets local governments levy one, with an average of 1.82% and some towns over 7%. Montana allows resort-area taxes, Delaware taxes businesses on gross receipts, and New Hampshire charges an 8.5% meals and rooms tax. Hawaii's 4% rate is technically a general excise tax on businesses, but it is usually passed on to buyers.

Highest combined sales tax rates in 2026

The highest state-level rate is California's 7.25%. Indiana, Mississippi, Rhode Island and Tennessee are next at 7%. New Jersey's average local rate shows as slightly negative because some of its Urban Enterprise Zones charge a reduced rate.

• Louisiana: 10.13% average combined. The state rate rose to 5% in 2025, and local rates average 5.13%.
• Tennessee: 9.61%. It has a 7% state rate and taxes groceries at a reduced 4%.
• Washington: 9.57%. Seattle is 10.55% in 2026.
• Arkansas: 9.48%, and Alabama: 9.46%. Alabama has the highest average local rate, at 5.46%.

What it costs: a $1,500 purchase in five places

If you buy online from a store that doesn't collect your state's tax, you technically owe use tax at the same rate. Most large online sellers now collect it automatically under economic nexus laws.

Groceries, clothing and other exemptions

Most states exempt groceries or tax them at a reduced rate. Illinois ended its 1% statewide grocery tax on January 1, 2026, though many local governments now charge their own 1%. Arkansas repealed its state-level grocery tax. A few states, including Pennsylvania, Minnesota, New Jersey and Vermont, exempt most clothing. Massachusetts exempts clothing items up to $175, and New York exempts items under $110, though local tax may still apply. Check your state's rules before estimating tax on a shopping list.

What sales tax costs a household in a year

Rates look small at the register, but they add up over a year. A rough way to estimate your own cost is to add up spending on taxable goods (most things except groceries, rent, utilities in many states, and medical care), then multiply by your local combined rate. The table applies each state's average combined rate to $25,000 of taxable spending.

• The difference between Louisiana and Oregon on the same spending is about $2,533 a year, about the same as the state income tax on a modest salary in many states.
• If you itemize deductions, you can deduct state and local sales tax instead of income tax, up to the federal SALT cap of $40,400 for 2026. The IRS Sales Tax Deduction Calculator estimates the amount from your income and ZIP code.

Use tax: what you owe when no sales tax was charged

Use tax is the other half of sales tax. If you buy something taxable without paying your state's tax, for example from an out-of-state seller that doesn't collect it or on a trip to a lower-tax state, you owe use tax at your home rate when you bring the item home. Since the 2018 South Dakota v. Wayfair decision, most large online sellers collect tax automatically, so use tax now comes up mainly with small sellers, purchases abroad and big items bought out of state.

Several states collect use tax on the income tax return. California's Form 540 has a use tax line where you must enter an amount or check a box confirming you owe none. New York's Form IT-201 has a sales or use tax line for items delivered into the state without New York tax. Vehicles are handled separately: you usually pay tax when you register the car in your home state.

Sales tax on services and digital goods

States have traditionally taxed physical goods and exempted most services, but the line keeps moving. South Dakota, Hawaii and New Mexico tax a wide range of services. Washington began taxing some services in October 2025, including certain IT, advertising, temporary staffing and custom software services. Digital products such as streaming, downloaded software and e-books are taxable in many states and exempt in others. If you run a business that sells services or digital products across state lines, check each state's rules rather than assuming services are exempt.