Here Are The States With The Lowest Sales Tax

It is said that the only two things in life that are certain are death and taxes. Both of these come in many forms but the end result remains the same. Taxes come in many forms: property taxes, income taxes, and of course sales tax. However, like many things, not all taxes are created equal. Here are the States with the lowest sales tax.

Like state income tax, sales tax varies from state to state. If you’re lucky enough to live in Delaware New Hampshire, Montana, Oregon then congratulations, you pay no sales tax on goods.

Other states aren’t quite so lucky.  Currently, the sales tax rate in the United States ranges from 1.69% in Alaska to 9.45% in Tennessee.


highest sales tax

The 5 Highest

  • Tennessee: 9.45%
  • Arkansas: 9.24%
  • Louisiana: 8.91%
  • Washington: 8.88%
  • Alabama: 8.85%

The 5 Lowest

  • Alaska: 1.69%
  • Hawaii: 4.35%
  • Wisconsin: 5.43%
  • Wyoming: 5.49%
  • Maine: 5.50%

What Gives?

You might expect high sales tax to be present in large states with heavily populated Urban centers. However, sales tax in states such as New York (4.0%), California (7.5%) are relatively low.

It is important to note, however, that these are effective state sales tax rates. New York City, for example, has a high local sales tax rate which effectively makes for an 8.5% sales tax rate.  Sales tax in San Francisco is also 8.5%

Local Taxes Matter

The impact of sales tax, both at the state and local level can have a direct impact on your cost of living. The same can be said for all major state and local taxes. City vs City takes state and local taxes into account when calculating cost of living.

Our app is a powerful cost of living calculator that examines after-tax income, housing expenses, transportation costs, state and local taxes, and more. This information leads to an accurate rundown of your true cost of living.

Then, we compare these findings at the zip-code level to another city of your choosing. Using the same calculations we arrive at a side by side comparison of which city can offer you the best cost of living for your situation.

If you’re looking to move cities, download the City vs City app today!