10 States With the Highest Sales Taxes

10. New York Sales Tax

 Statewide sales tax: 4%

Average local sales tax: 4.52%

Average combined sales tax: 8.52% 

You might not be surprised to see New York make this list, but it barely does, coming in as the tenth most expensive for combined sales tax. While statewide tax in New York is only 4%, local taxes can run up to 4.875%. Sales tax is the highest in the five boroughs of New York City and Yonkers, and it does not fall below 7% in any county. You can find this 7% rate in Saratoga, Warren, and Washington counties.

New York also eliminated state and local taxes on diapers and other products marketed to women, often referred to as the "Pink Tax." If a business charges you tax on these items, you could be entitled to $250.

Regarding the New York pink tax ban, former New York Gov. Andrew Cuomo (opens in new tab) said, "By abolishing the pink tax, women and girls will no longer be subject to harmful and unfair price discrimination."

Good to know facts about New York sales tax:

• Groceries and prescription drugs aren’t taxable.
• You won’t need to pay tax on clothing items under $110.
• Diapers became tax exempt beginning in December 2022.
• Taxes still apply to motor vehicle purchases.

9. Kansas Sales Tax

Statewide sales tax: 6.5%

Average local sales tax: 2.16

Average combined sales tax: 8.66 

Kansas isn’t the most tax-friendly, especially in Junction City. The city imposes its own tax rate of 2% on top of the state's 6.5% rate and the Geary County rate of 1.25%. The good news is that you can travel to other areas within the county and pay a sales tax of only 7.75%. 

Good to know facts about Kansas sales tax: 

• You won’t pay a tax on prescription drugs.
• Motor vehicle and clothing purchases are taxed on state and local levels.
• You will need to pay state sales tax on groceries if you buy them before 2025. But the state has already begun the process to phase out this tax. It was reduced from 6.5% to 4% in January 2023.  

8. Illinois Sales Tax

Statewide sales tax: 6.25%

Average local sales tax: 2.57%

Average combined sales tax: 8.82%

Although the average Illinois local sales tax is only 2.57%, it’s much higher in some areas. Chicago residents pay a 10.25% sales tax rate. But if you are a fan of the city’s authentic deep dish pizza, the higher tax might be worth it. You can find cheaper tax rates of 7.25% in areas of Crawford, Iroquois, and Henderson counties.

Good to know facts about Illinois sales tax: 

• You’ll need to pay tax on prescription drugs, which are not taxable in most other states. However, the tax is reduced to 1%.
• You’ll pay taxes on clothing and vehicle purchases.
• Groceries are tax exempt through June 2023 (unless you do your shopping within the Regional Transportation Authority or Metro-East Mass Transit District). 

7. California Sales Tax

Statewide sales tax: 7.25%

Average local sales tax: 1.57%

Average combined sales tax: 8.82%

The state ranks as having the highest sales tax in the US when considering California state tax only, but with an average combined rate of 8.82%, it skates by at number 7. Tax rates are over 10% in cities like Los Angeles and Burbank, but you can find several California cities with tax rates under 8%, including Avila Beach and Boulevard. 

Good to know facts about California sales tax: 

• You will pay state and local taxes on motor vehicle purchases and clothing.
• You won’t pay sales tax on prescription drugs or groceries.
• Thirty cities saw local sales taxes increase on April 1, 2023, many by an entire percent.

6. Washington Sales Tax

Statewide sales tax: 6.5%

Average local sales tax: 2.36%

Average combined sales tax: 8.86% 

Although the average local tax rate in Washington is only 2.36%, localities can tax up to 4.1% in addition to the state tax, according to Tax Foundation. If you want to travel to Seattle, you’ll pay an 8.8% sales tax for most items. But be prepared to pay more if you eat out. Food and beverages are taxed at a 9.3% rate in local bars and restaurants.

Good to know facts about Washington sales tax: 

• You’ll pay sales tax on motor vehicles, with an additional tax of 0.3%.
• Groceries and prescription drugs are exempt.
• You might save money if you move to Washington since it’s a state with no income tax.

5. Oklahoma Sales Tax

Statewide sales tax: 4.5%

Average local sales tax: 4.48%

Average combined sales tax: 8.98% 

Oklahoma might not come to mind when you think about states with high taxes, and that makes sense when considering the statewide Oklahoma tax is only 4.5%. But some people in the state can pay as much as 7% on top of that. There is good news if you prefer the big cities though. Tulsa and Oklahoma City are taxed between 8% and 9%.

Good to know facts about Oklahoma sales tax: 

• Clothing and prescription drugs are tax-exempt.
• Motor vehicle purchases are taxable.
• Groceries are taxable, but some Oklahoma lawmakers are trying to repeal this tax. (Oklahoma State Representative Josh Cantrell has reportedly said that paying the grocery tax can mean the "difference between an extra gallon of milk a week or having some more meat in the refrigerator)."

4. Alabama Sales Tax

Statewide sales tax: 4%

Average local sales tax: 5.25%

Average combined sales tax: 9.25% 

Alabama shares the same statewide sales tax with New York at 4%, but the local sales tax can jump up to 7.5%, forcing some residents to pay a sales tax as high as 11.5%. You’ll pay the most if you make purchases in the city of Arab. If you want to enjoy a 6% tax rate, head to Millerville.

Good to know facts about Alabama sales tax: 

• Motor vehicle purchases and clothing are taxable at the state and local levels.
• Prescription drug purchases are exempt.
• Alabama is one of the few states that tax groceries at the full state tax rate.
• Alabama residents spend an average of $600 per year on grocery tax alone, according to the organization, Alabama Arise (opens in new tab). 
• Lawmakers are currently trying to repeal the tax on groceries. State legislator, Sen. Merika Coleman (opens in new tab), has described the grocery tax as "just plain, wrong, and unfair."

3. Arkansas Sales Tax

Statewide sales tax: 6.5%

Average local sales tax: 2.96%

Average combined sales tax: 9.46%

It’s interesting that Arkansas has the third highest average combined sales tax rate in the country, considering its cost of living falls well below the national average. It just goes to show that even when you pay a higher sales tax, you could still pay less overall (when the taxable items cost less to begin with).

Good to know facts about Arkansas sales tax:

• Like in most states, prescription drugs are tax exempt.
• Motor vehicle purchases and clothing are taxable.
• Arkansas does tax groceries but at a reduced rate of 0.125%. 

2. Tennessee Sales Tax

Statewide sales tax: 7%

Average local sales tax: 2.55%

Average combined sales tax: 9.55%

Although Tennessee ranks as the second most expensive state when considering average combined state and local taxes, total sales taxes remain below 10% statewide. So, you can travel anywhere in the state without the significant tax rate changes you see with other states on this list.

Good to know facts about Tennessee sales tax:

• Unfortunately, groceries are taxable in Tennessee, but at least they are taxed at a reduced rate of 4%.
• Prescription drugs are also taxed at the reduced 4% rate.
• Motor vehicle purchases and clothing are also taxable.
• Tennessee has extended their sales tax holiday on gun safes and safety devices until June 30,2023.
• The state’s tax holiday on school supplies, clothing, and computers is scheduled from July 28 to July 30 this year.

1. Louisiana Sales Tax

Statewide sales tax: 4.45%

Average local sales tax: 5.10%

Average combined sales tax: 9.55% 

Louisiana ranks as the state with the highest sales tax when considering state and local taxes. It would have come in at the 38th most expensive state if considering Louisiana state tax only. Residents of Sterlington face a tax rate of nearly 11%, but residents of Cameron Parish (a few hundred miles away) pay no local taxes. That means they pay only the 4.45% Louisiana state tax rate.

Good to know facts about Louisiana sales tax: 

• Even though Louisiana takes the spot for most expensive sales tax, you won’t pay taxes on groceries or prescription drugs.
• Motor vehicle purchases and clothing are taxable.
• Like New York, there is no longer a tax on feminine products or diapers.