% Sales Tax Guide

Sales Tax Guide resource

Lowest Sales Tax States

Compare low-tax and no-tax states while understanding local taxes and other business tax obligations.

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How to Read the Lowest Sales Tax State List

A low average combined sales tax rate does not always mean a transaction is simple. Local taxes, selective taxes, lodging taxes, gross receipts taxes, product exemptions, and filing rules can still affect buyers and sellers.

Low averageThe typical combined rate is lower than many states, but local rules can still matter.
No broad taxSome states do not have a broad statewide sales tax, but other transaction taxes may apply.
Business dutiesRegistration, nexus, exemption records, and filing can still apply depending on activity.
Local checksUse the state guide and official source before assuming a sale is tax-free.

Best Next Step

Use the ranking as a broad comparison, then open the state guide for local tax notes, filing links, exemption reminders, and official source links.

StateState RateAvg CombinedGuide
Delaware0%0%Open guide
Montana0%0%Open guide
New Hampshire0%0%Open guide
Oregon0%0%Open guide
Alaska0%1.82%Open guide
Hawaii4%4.5%Open guide
Maine5.5%5.5%Open guide
Wyoming4%5.56%Open guide
Wisconsin5%5.7%Open guide
Virginia5.3%5.77%Open guide
District of Columbia6%6%Open guide
Kentucky6%6%Open guide
Maryland6%6%Open guide
Michigan6%6%Open guide
Idaho6%6.03%Open guide
South Dakota4.2%6.11%Open guide
Massachusetts6.25%6.25%Open guide
Vermont6%6.3%Open guide
Pennsylvania6%6.34%Open guide
Connecticut6.35%6.35%Open guide
West Virginia6%6.56%Open guide
New Jersey6.625%6.6%Open guide
Iowa6%6.94%Open guide
Nebraska5.5%6.97%Open guide
Florida6%7%Open guide
Indiana7%7%Open guide
North Carolina4.75%7%Open guide
Rhode Island7%7%Open guide
North Dakota5%7.04%Open guide
Mississippi7%7.07%Open guide
Ohio5.75%7.24%Open guide
Utah6.1%7.25%Open guide
Georgia4%7.38%Open guide
South Carolina6%7.49%Open guide
New Mexico5.125%7.62%Open guide
Colorado2.9%7.81%Open guide
Minnesota6.875%8.04%Open guide
Texas6.25%8.21%Open guide
Nevada6.85%8.24%Open guide
Arizona5.6%8.38%Open guide
Missouri4.225%8.43%Open guide
New York4%8.54%Open guide
Kansas6.5%8.76%Open guide
Illinois6.25%8.86%Open guide
California7.25%8.98%Open guide
Oklahoma4.5%8.99%Open guide
Alabama4%9.43%Open guide
Washington6.5%9.43%Open guide
Arkansas6.5%9.46%Open guide
Tennessee7%9.56%Open guide
Louisiana5%10.12%Open guide
Puerto Rico10.5%11.5%Open guide

Before You Compare States

  1. Start with the state rate and average combined rate.
  2. Check whether the destination has county, city, district, transit, or special local taxes.
  3. Confirm product taxability for the exact item or service.
  4. Review nexus, marketplace, exemption, registration, and filing duties separately.
  5. Use the official state source before collecting, filing, or changing checkout settings.

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