Things to Know About Sales Tax Rates

Things to Know about Sales Tax Rates

Sales taxes are one of the most transparent ways for states to collect taxes. Sales tax rates change from state-to-state and county-to-county, but they don’t (usually) change based on what you buy or how much you buy.

Most states (and Washington, D.C.) collect sales taxes. Of the five states that don’t collect any sales taxes (Alaska, Delaware, New Hampshire, Montana, and Oregon), only Alaska and Montana allow counties to collect local sales taxes.

Common Exemptions

There are several states that do not tax necessities, like groceries, prescription and non-prescription drugs, and clothing. Some states also don’t tax things like services, other intangibles, and real property.

State Sales Tax Rates

StateState RateAvg. Local RateAvg. Combined RateMax Local RateExemptions
Alabama4%5.1%9.1%7.5%Prescription Drugs
Alaska0%1.76%1.76%7.5%
Arizona5.6%2.73%8.33%5.3%Groceries
Prescription Drugs
Arkansas6.5%2.91%9.41%5.125%Prescription Drugs
Intangibles
California7.25%1.29%8.54%2.5%Groceries
Prescription Drugs
Intangibles
Colorado2.9%4.62%7.52%8.3%Groceries
Prescription Drugs
Connecticut6.35%0%6.35%0%Groceries
Prescription Drugs
Non-Prescription Drugs
Delaware0%0%0%0%
Florida6%0.8%6.8%2%Groceries
Prescription Drugs
Intangibles
Georgia4%3.15%7.15%4.9%Prescription Drugs
Intangibles
Hawaii4%0.35%4.35%0.5%
Idaho6%0.8%6.8%2%Prescription Drugs
Illinois6.25%2.45%8.7%4.75%Intangibles
Indiana7%0%7%0%Groceries
Prescription Drugs
Iowa6%0.8%6.8%1%Groceries
Prescription Drugs
Intangibles
Kansas6.5%2.18%8.68%4%Intangibles
Kentucky6%0%6%0%Groceries
Prescription Drugs
Louisiana5%5.02%10.02%7%
Maine5.5%0%5.5%0%Groceries
Prescription Drugs
Maryland6%0%6%0%Groceries
Prescription Drugs
Massachusetts6.25%0%6.25%0%Groceries
Clothing2
Prescription Drugs
Intangibles
Michigan6%0%6%0%Prescription Drugs
Intangibles
Minnesota6.875%0.55%7.42%2%Clothing
Prescription Drugs
Intangibles
Mississippi7%0.07%7.07%1%
Missouri4.225%3.8%8.03%5.39%Intangibles
Montana0%0%0%0%
Nebraska5.5%1.39%6.89%2%Groceries
Nevada6.85%1.29%8.14%1.42%Groceries
Prescription Drugs
Intangibles
New Hampshire0%0%0%0%
New Jersey6.625%-0.03%16.595%3.31%Groceries
Clothing
Prescription Drugs
New Mexico5.125%2.54%7.66%4.125%Groceries
New York4%4.49%8.49%4.875%Groceries
Clothing3
Prescription Drugs
Non-Prescription Drugs
Intangibles
North Carolina4.75%2.2%6.95%2.75%
North Dakota5%1.8%6.8%3.5%Groceries
Intangibles
Ohio5.75%1.4%7.15%2.25%Groceries
Prescription Drugs
Oklahoma4.5%4.41%8.91%6.5%Intangibles
Oregon0%0%0%0%
Pennsylvania6%0.34%6.34%2%Groceries
Clothing
Prescription Drugs
Non-Prescription Drugs
Rhode Island7%0%7%0%Groceries
Clothing
Prescription Drugs
Intangibles
South Carolina4.5%1.9%6.4%4.5%Groceries
Prescription Drugs
Intangibles
South Dakota4.5%1.9%6.4%4.5%
Tennessee7%2.46%9.46%2.75%
Texas6.25%1.92%8.17%2%Groceries
Utah5.95%0.82%6.77%2.65%Prescription Drugs
Non-Prescription Drugs
Vermont6%0.18%6.18%1%Groceries
Clothing3
Prescription Drugs
Non-Prescription Drugs
Virginia5.3%0.33%5.63%0.7%Prescription Drugs
Non-Prescription Drugs
Intangibles
Washington6.5%2.68%9.18%3.9%Groceries
Prescription Drugs
West Virginia6%0.37%6.37%1%Groceries
Prescription Drugs
Intangibles
Wisconsin5%0.42%5.42%1.75%Groceries
Prescription Drugs
Wyoming4%1.46%5.46%2%Groceries
Prescription Drugs
Washington, D.C.5.75%0%5.75%0%Groceries
Prescription Drugs
Non-Prescription Drugs

1 Salem County does not collect statewide sales tax.
2 In Massachusetts, clothing is tax free on purchases under $175.
3 In New York and Vermont, clothing is tax free on purchases under $110.