General Sales Tax by U.S. County Mapped

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In the United States, the absence of a national sales tax leads to a diverse landscape of state and local tax rates. As of 2022, state sales tax rates ranged from 2.9% to 7.25%, with 35 states permitting local governments to levy additional taxes between 1% and 5%. Notably, Alaska, Delaware, Montana, New Hampshire, and Oregon did not impose a statewide sales tax.

How Sales Tax Works

Sales tax is computed by multiplying the purchase price by the corresponding tax rate. The seller collects it at the time of the transaction. Use tax, on the other hand, is self-assessed by a customer who hasn’t paid sales tax on a taxable purchase. Unlike a value-added tax (VAT), which is applied at multiple points in the production and distribution chain, sales tax is levied only at the retail level. However, if items are resold at retail multiple times—such as used vehicles—the sales tax can be charged repeatedly on the same item.

Sales Tax Trends and Changes Since 2022

Fast forward to 2025, and the landscape of sales taxation has experienced notable shifts. While the foundational structure remains, several states have adjusted their rates and policies. For instance, Kansas has completely eliminated its food tax starting January 2025, reflecting a broader trend of states reassessing taxes on essential goods. Arkansas maintains a minimal food tax rate of 0.125%, with ongoing efforts to eliminate it entirely. Conversely, states like Alabama and Tennessee have retained their food taxes at 3% and 4% respectively, despite legislative attempts to repeal them).

Several cities and counties have voted to raise or lower their local sales tax rates, particularly in states where local governments rely heavily on sales tax revenue.

The most recent data from the Tax Foundation (January 2025) lists the states with the highest combined state and local sales tax rates as:

1. Louisiana – 10.12%
2. Tennessee – 9.56%
3. Arkansas – 9.46%
4. Washington – 9.43%
5. Alabama – 9.43%

Meanwhile, the states with the lowest combined sales tax rates are:

1. Alaska – 1.82% (Alaska has no statewide sales tax but allows local sales taxes)
2. Hawaii – 4.50%
3. Wyoming – 5.44%
4. Maine – 5.50%
5. Wisconsin – 5.70%

This ranking is based on a population-weighted average of local sales taxes to reflect the actual tax burden consumers face.

These changes have been influenced by economic conditions, legislative decisions, and shifts in consumer behavior. States continually adjust their tax policies to balance revenue generation with economic competitiveness and fairness.

We invite you to share your thoughts on these developments. How have changes in sales tax rates impacted you or your community? Feel free to leave a comment below.