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

State State Rate Avg. Local Rate Avg. Combined Rate Max Local Rate Exemptions
Alabama 4% 5.1% 9.1% 7.5% Prescription Drugs
Alaska 0% 1.76% 1.76% 7.5%
Arizona 5.6% 2.73% 8.33% 5.3% Groceries
Prescription Drugs
Arkansas 6.5% 2.91% 9.41% 5.125% Prescription Drugs
Intangibles
California 7.25% 1.29% 8.54% 2.5% Groceries
Prescription Drugs
Intangibles
Colorado 2.9% 4.62% 7.52% 8.3% Groceries
Prescription Drugs
Connecticut 6.35% 0% 6.35% 0% Groceries
Prescription Drugs
Non-Prescription Drugs
Delaware 0% 0% 0% 0%
Florida 6% 0.8% 6.8% 2% Groceries
Prescription Drugs
Intangibles
Georgia 4% 3.15% 7.15% 4.9% Prescription Drugs
Intangibles
Hawaii 4% 0.35% 4.35% 0.5%
Idaho 6% 0.8% 6.8% 2% Prescription Drugs
Illinois 6.25% 2.45% 8.7% 4.75% Intangibles
Indiana 7% 0% 7% 0% Groceries
Prescription Drugs
Iowa 6% 0.8% 6.8% 1% Groceries
Prescription Drugs
Intangibles
Kansas 6.5% 2.18% 8.68% 4% Intangibles
Kentucky 6% 0% 6% 0% Groceries
Prescription Drugs
Louisiana 5% 5.02% 10.02% 7%
Maine 5.5% 0% 5.5% 0% Groceries
Prescription Drugs
Maryland 6% 0% 6% 0% Groceries
Prescription Drugs
Massachusetts 6.25% 0% 6.25% 0% Groceries
Clothing2
Prescription Drugs
Intangibles
Michigan 6% 0% 6% 0% Prescription Drugs
Intangibles
Minnesota 6.875% 0.55% 7.42% 2% Clothing
Prescription Drugs
Intangibles
Mississippi 7% 0.07% 7.07% 1%
Missouri 4.225% 3.8% 8.03% 5.39% Intangibles
Montana 0% 0% 0% 0%
Nebraska 5.5% 1.39% 6.89% 2% Groceries
Nevada 6.85% 1.29% 8.14% 1.42% Groceries
Prescription Drugs
Intangibles
New Hampshire 0% 0% 0% 0%
New Jersey 6.625% -0.03%1 6.595% 3.31% Groceries
Clothing
Prescription Drugs
New Mexico 5.125% 2.54% 7.66% 4.125% Groceries
New York 4% 4.49% 8.49% 4.875% Groceries
Clothing3
Prescription Drugs
Non-Prescription Drugs
Intangibles
North Carolina 4.75% 2.2% 6.95% 2.75%
North Dakota 5% 1.8% 6.8% 3.5% Groceries
Intangibles
Ohio 5.75% 1.4% 7.15% 2.25% Groceries
Prescription Drugs
Oklahoma 4.5% 4.41% 8.91% 6.5% Intangibles
Oregon 0% 0% 0% 0%
Pennsylvania 6% 0.34% 6.34% 2% Groceries
Clothing
Prescription Drugs
Non-Prescription Drugs
Rhode Island 7% 0% 7% 0% Groceries
Clothing
Prescription Drugs
Intangibles
South Carolina 4.5% 1.9% 6.4% 4.5% Groceries
Prescription Drugs
Intangibles
South Dakota 4.5% 1.9% 6.4% 4.5%
Tennessee 7% 2.46% 9.46% 2.75%
Texas 6.25% 1.92% 8.17% 2% Groceries
Utah 5.95% 0.82% 6.77% 2.65% Prescription Drugs
Non-Prescription Drugs
Vermont 6% 0.18% 6.18% 1% Groceries
Clothing3
Prescription Drugs
Non-Prescription Drugs
Virginia 5.3% 0.33% 5.63% 0.7% Prescription Drugs
Non-Prescription Drugs
Intangibles
Washington 6.5% 2.68% 9.18% 3.9% Groceries
Prescription Drugs
West Virginia 6% 0.37% 6.37% 1% Groceries
Prescription Drugs
Intangibles
Wisconsin 5% 0.42% 5.42% 1.75% Groceries
Prescription Drugs
Wyoming 4% 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.