Sales Tax by State 2026: Rates and Rankings

Louisiana has the highest average combined state and local sales tax in 2026 at 10.13%, followed by Tennessee (9.61%), Washington (9.57%), Arkansas (9.48%) and Alabama (9.46%). Five states have no statewide sales tax at all: Alaska, Delaware, Montana, New Hampshire and Oregon. The population-weighted national average combined rate is 7.53%.

The figures below are from the Tax Foundation's midyear 2026 report, which lists rates in effect on July 1, 2026. Local rates change often, so your exact rate depends on the city and county where you buy.

Highest and Lowest Sales Tax States in 2026

California has the highest state rate at 7.25% (including a mandatory 1.25% local add-on), but lower local rates put its average combined rate at 9.03%, seventh in the country. Alabama works the other way: a low 4% state rate with the highest average local rate, 5.46%.

Sales Tax Rates by State: Full 2026 Table

State rate, population-weighted average local rate, combined rate and combined rank (1 is highest) as of July 1, 2026, from the Tax Foundation. States tied on combined rate share a rank.

Notes: The District of Columbia's general rate stays at 6% through September 30, 2027; the scheduled rise to 7% was postponed by one year and is now set for October 1, 2027 (DC Office of Tax and Revenue). California, Utah and Virginia include mandatory statewide local add-ons in their state rates. *New Jersey's average local rate is slightly negative because Salem County collects a reduced rate below the statewide rate. Hawaii's general excise tax and New Mexico's gross receipts tax apply to a broader base than a typical sales tax, including many services, so their rates understate how much they collect.

The 5 States With No Statewide Sales Tax

• Alaska: no state tax, but many cities and boroughs levy their own, which is why its average combined rate is 1.82%. The highest local rate is 7.85%.
• Delaware: no sales tax, though the state taxes businesses on gross receipts instead.
• Montana: no general sales tax statewide or locally.
• New Hampshire: no general sales tax.
• Oregon: no general sales tax.

No sales tax does not mean low taxes overall. These states raise money in other ways: New Hampshire has some of the highest property taxes in the country, and Oregon relies heavily on income tax. Compare the full picture in our state income tax comparison for 2026.

Groceries and Clothing: What Is Exempt

The headline rate does not apply to everything. Exemptions for food and clothing can matter more to your budget than a half-point difference in rates.

Groceries (state treatment as of January 1, 2026, per the Tax Foundation):

• Most states with a sales tax exempt groceries from the state tax, though local taxes may still apply in some of them.
• Taxed at a reduced state rate: Alabama (2%), Mississippi (5%), Missouri (1.225%), Tennessee (4%) and Utah (3%).
• Taxed at the full state rate: Hawaii, Idaho and South Dakota.
• Candy and soda are often taxed even where groceries are not. Illinois, Indiana and Texas, for example, do not treat either as groceries.

Clothing (per the Tax Foundation):

• Generally exempt: Minnesota, New Jersey, Pennsylvania and Vermont. Some items, such as accessories or sports gear, can still be taxed.
• Exempt up to a price: Massachusetts ($175), New York ($110) and Rhode Island ($250). The rules differ by state: in Massachusetts and Rhode Island only the amount above the threshold is taxed, while in New York an item priced at $110 or more is taxed in full.

How to Calculate Sales Tax

To add sales tax: price × rate = tax. Then price + tax = total.

• A $1,000 laptop at California's average combined rate of 9.03%: $1,000 × 0.0903 = $90.30 in tax, for a total of $1,090.30.
• A $35,000 car at a 7% combined rate: $35,000 × 0.07 = $2,450. Many states tax only the price after your trade-in, and vehicle rules often differ from the general rate, so check your state's motor vehicle tax before you budget. The auto loan calculator shows how rolling that tax into the loan changes your payment.

To back sales tax out of a total: total ÷ (1 + rate) = pre-tax price. Then total − price = tax.

• A receipt for $54.13 at 8.25%: $54.13 ÷ 1.0825 = $50.00 before tax, so $4.13 was tax.

A common mistake is multiplying the total by the rate and subtracting it. That gives $54.13 − $4.47 = $49.66, which is wrong, because the tax was charged on the $50 price, not on the total. The sales tax calculator does both directions for you.

Deducting Sales Tax Instead of Income Tax

If you itemize deductions on your federal return, you can deduct either your state and local income taxes or your state and local general sales taxes, but not both. You make the choice on Schedule A (IRS Topic 503).

• Who should pick sales tax: people in states with no income tax, like Texas, Florida, Washington, Tennessee and Nevada, and anyone whose sales tax bill was larger than their income tax, for example in a year with a big purchase.
• How to figure it: use your actual receipts, or use the IRS optional sales tax tables based on your income and location. The IRS Sales Tax Deduction Calculator does this and lets you add tax paid on specified large purchases, such as a vehicle.
• The cap still applies: sales tax and property tax together fall under the SALT cap, which is $40,400 for 2026 and shrinks for incomes above $505,000, down to a $10,000 floor. See our SALT cap guide.
• You must itemize to benefit. The 2026 standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. If your itemized total is lower, the choice does not matter.

Worked example (hypothetical figures). A married couple in Texas has no state income tax to deduct. Their sales tax from the IRS tables is $2,600, they paid $2,450 of sales tax on a new car, their property tax is $8,500 and their mortgage interest is $19,000. Their itemized total is $32,550, just $350 above the $32,200 standard deduction. In the 22% bracket that is worth about $77, and without the car purchase they would be better off with the standard deduction.

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