Sales Tax by State in 2026, Including Local Rates
Five states charge no sales tax. Louisiana charges more than 10% once local rates are added.
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Marcus Ellery Senior editor, tax and payrollMarcus edits the tax and paycheck desks, and owns the federal figures every calculator on the site reads from.
Combined state and average local sales tax in 2026 ranges from zero in Delaware, Montana, New Hampshire and Oregon to 10.11% in Louisiana. California has the highest state-level rate at 7.25%, but local add-ons in Louisiana, Tennessee and Arkansas push their combined rates higher.
The short version
- Five states levy no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon, though Alaska allows local sales taxes averaging 1.82%.
- Louisiana has the highest combined state and local sales tax rate at 10.11%, driven by an average local rate of 5.11% on top of a 5.00% state rate.
- California has the highest state-level rate at 7.25%, but its low average local rate of 1.74% leaves it seventh on combined rate at 8.99%.
- Colorado charges only 2.90% at state level but averages 4.99% locally, so the combined 7.89% is nearly triple the state figure.
- Sales tax is charged at the rate where the buyer takes delivery in most states, which is why an online order can be taxed at a rate you have never seen.
Key figures · 2026
- Highest combined (Louisiana)
- 10.11%
- Tax Foundation
- Highest state rate (California)
- 7.25%
- Tax Foundation
- States with no sales tax
- 5
- Tax Foundation
- Effective date
- 1 Jan 2026
- Tax Foundation
Contents
Which states have no sales tax?
Five: Delaware, Montana, New Hampshire and Oregon charge nothing at any level. Alaska has no statewide sales tax, but boroughs and cities levy their own, averaging 1.82%.
Which states have the highest sales tax?
Combined state and average local rates:
| State | State rate | Avg local | Combined |
|---|---|---|---|
| Louisiana | 5.00% | 5.11% | 10.11% |
| Tennessee | 7.00% | 2.61% | 9.61% |
| Washington | 6.50% | 3.01% | 9.51% |
| Alabama | 4.00% | 5.46% | 9.46% |
| Arkansas | 6.50% | 2.96% | 9.46% |
| Oklahoma | 4.50% | 4.56% | 9.06% |
Notice that the state rate is a poor guide on its own. Alabama's 4% state rate is among the lowest in the country, but local rates averaging 5.46% put its combined rate near the top.
Which state has the highest state-level rate?
California, at 7.25%, though that figure includes a mandatory 1.25% local add-on levied statewide. Utah and Virginia do the same thing, at 1.25% and 1% respectively.
Why is New Jersey's average local rate negative?
Because Urban Enterprise Zones charge half the state rate to encourage business in specific areas. Averaged across the state, that pulls the local figure to −0.02%.
Are Hawaii and New Mexico really sales taxes?
Not quite. Both levy a gross receipts tax on sellers rather than a sales tax on buyers. The economic effect is similar, but the base is much broader. It reaches services that a conventional sales tax would not touch. That is why Hawaii's 4% rate raises far more than 4% would elsewhere.
Frequently asked questions
Which states have no sales tax?
Delaware, Montana, New Hampshire and Oregon charge none at any level. Alaska has no state rate but allows local ones.
Which state has the highest sales tax?
Louisiana, at 10.11% combined once average local rates are included.
Why is Alabama near the top with a 4% state rate?
Local rates average 5.46% on top, giving a combined 9.46%.
Do groceries get taxed?
It varies. Many states exempt groceries entirely or apply a reduced rate, while others tax them at the full rate.
What is a gross receipts tax?
A tax on the seller's total revenue rather than on the buyer's purchase. Hawaii and New Mexico use this model.
When did these rates take effect?
1 January 2026, per the Tax Foundation's published figures.
Sources
Every figure on this page is attributed to a named source with the date it took effect. Our reviewers check them against the primary source before publication.
About our expert
Senior editor, tax and payroll
Experience
Marcus edits everything on this site that turns on a federal or state tax figure: brackets, standard deductions, withholding thresholds, FICA caps and the state rate tables behind the paycheck tools.
His working rule is that a number appears on a page only if it also exists in the data layer with a source and an effective date attached, so an article and the calculator beside it can never disagree.
Areas of expertise
- Federal tax
- State income tax
- Payroll withholding
- FICA
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