You could say that sales taxes are the form of taxation that truly affects every person – it’s the classic consumption tax. It is also the one politicians often reach for first to ratchet-up to fund their next project du jour. That being said, the folks over at the Tax Foundation recently put together some numbers showing combined sales tax rates (state & local where applicable) for each state. The five states with the highest average combined state and local sales tax rates are Louisiana (9.56%), Tennessee (9.55%), Arkansas (9.45%), Washington (9.38%), and Alabama (9.29%).
“Forty-five states impose state-level sales taxes, while consumers also face local sales taxes in 38 states, including Alaska, which does not impose a statewide tax. These local rates can be substantial, and some states with moderate statewide sales tax rates actually impose quite high combined state and local rates compared to other states.”
Click here to read the full report at the Tax Foundation.
