Which states have the highest combined state and local sales tax rates?

Considering the highest local sales tax rate, the states with the highest combined state and local sales tax rates are: Arkansas: 12.75%, Kansas: 12.125%, Oklahoma: 11.50%, Louisiana: 11.45%, and Arizona: 11.2%.

Which states have the highest local tax rates?

The states with the highest local tax rates include: Colorado: 8.3%, Alaska: 7.5%, Oklahoma: 7%, Louisiana: 7%, and Alabama: 7%.

What state has no property tax?

None. All states in the US have property taxes. Property taxes fund public services and local governments.

What is the 80-80 rule?

The 80-80 rule means over 80% of your sales are food, and over 80% of the food you sell is taxable. If the 80-80 rule applies but you don’t track to-go cold food products separately, you will have to pay tax on 100%.

What state has the highest grocery tax?

Mississippi is the state with the highest grocery tax rate at 7%. Only 13 of the states in the US have a grocery tax.

Buy now

QuickBooks Blog

taxes

Top 10 states with the highest sales tax rates in 2025

By Marshall Hargrave

Published on February 27, 2025

Reviewed By Liz Farr

Running a small business is thrilling, but navigating sales tax means scrunching numbers and understanding regulations.

You must calculate and charge sales tax for each purchase when your business sells something. The sales tax rates vary by state and by location within the state. While some states only have sales tax at a state level, others also have different rates depending on your city or county, leading to a higher combined sales tax rate.

Sales tax rates vary significantly from state to state. Below is a list of the 10 states with the highest sales tax rates in 2025:

An infographic map of the United States illustrating the states with the highest and lowest sales tax rates

1. California

California sales tax rates
State sales tax: 7.25%
Average local sales tax: 1.6%

What are the states with the lowest sales tax rates?

Many states with lower sales tax rates may not charge state and local sales taxes. However, they may have other tax obligations, such as property and income tax.

Here are the states with the lowest sales tax rates in 2025:

Delaware: State: 0%. Local: 0%

Montana: State: 0%. Local: 0%

New Hampshire: State: 0%. Local: 0%

Oregon: State: 0%. Local: 0%

Alaska: State: 0%. Local 1.8%

Colorado: State: 2.9%. Local: 4.9%

Alabama: State: 4.0%. Local: 5.3%

Georgia: State: 4.0%. Local: 3.4%.

Hawaii: State: 4.9%. Local: 0.5%.

New York: State: 4.0%. Local: 4.5%.

Wyoming: State: 4.0%. Local: 1.4%.

Sales tax rates can vary considerably between counties and local areas, so be sure to check the current rates for your location

Find peace of mind come tax time

After looking at the 10 states with the highest sales tax rates, you can see that sales tax rates vary widely across the US. To ensure your business stays compliant with sales tax laws, review the regulations in your area, apply for a sales tax license—and file them on time.

With the right tax calculation software, keeping up with different tax rates is simple. QuickBooks Online keeps track of thousands of tax laws with automatic sales tax calculations so you can focus on running your business.

Top 10 states with the highest sales tax rates in 2025

1. California

2. Mississippi

3. Indiana

4. Rhode Island

5. Tennessee

Tools plus experts, together

6. Minnesota

7. Nevada

8. New Jersey

9. Arkansas

10. Kansas

What are the states with the lowest sales tax rates?

Find peace of mind come tax time

States with the highest sales tax FAQ

Recommended for you

Get the latest to your inbox

Get the latest to your inbox

Looking for something else?

QuickBooks

Firm of the Future

QuickBooks Support