Factoring the combination of state and average local sales tax, the top five highest total sales tax states as ranked by the Tax Foundation for 2020 are: Tennessee 9.55%; Arkansas 9.53% 7.250% Note that the true California state sales tax rate is 6%. Lowest Tax Highest Tax No Sales Tax All but five U.S. states have a statewide sales tax which is collected on most consumer purchases made within state borders. 24 (TIE). In other words, you might pay a tax rate between 4% and 8.5% for the same car at the same sales price. We have listed the combined state/county rate as the state rate to eliminate confusion. These states include Hawaii with a 4.5% sales tax rate and North Carolina with a 3% sales tax rate. The 25 US states with the lowest sales tax, ranked. As of 2020, they include: 0% – 3.25%. These states include Montana, Delaware, Oregon, and New Hampshire. Next. 6 States with the Lowest (or No) Sales Tax Alaska State Sales Tax: 0% Local Sales Tax: 1.78% The Last Frontier is one of only five states to charge zero sales tax, and is one of two 0% sales tax states that allow local municipalities to levy a sales tax (the other is technically Montana). Nov 20, 2018, 20:31 IST. For example, in New York, the state sales tax rate is 4%, but county and local taxes can boost the rate up to 4.5% more. States With Low Sales Taxes . Additionally, many states with low sales tax have higher income taxes.. 1. These states charge sales taxes of 1.76, 4.35, 5.43, 5.47, and 5.5%, respectively. Among states that do have a sales tax, some are less significant than others. In addition, there are some states that charge less than 5% sales tax rates. The total state and local tax burden on Alaskans, including income, property, sales, and excise taxes, is just 5.16% of personal income, the lowest of all 50 states. New York also has one the highest income tax rates in the nation. Lake Providence, Louisiana has the dubious distinction of most expensive sales tax city in the country in 2020, with a combined state and city rate of 11.45%. A majority of state tax … Yes. Thirteen states impose taxes of 5% of the purchase price or less, including five states where the tax is just 4%. Still, while all of these states do not impose sales tax, some of them do permit localities to levy some sales tax. Combined state and local sales tax: 6.8% State sales tax rate: 6% Average local sales tax … As for New York State, the state sales tax rate is 4%, but many locations have additional sales tax on top of the state tax. The five states that charge the lowest average sales tax are Alaska, Hawaii, Wisconsin, Wyoming, and Maine. Iowa. The good news for consumers is that New York limits its vehicle sales tax to a maximum of $725. 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