Texas ranks 12th highest on state and local sales taxes

The combined state and average local sales taxes in Texas ranked 12th in the nation, according to a new analysis from the Tax Foundation. The analysis is based on July 2019 data.

The combined state and average local sales taxes total 8.19 percent in Texas– less than the 9.47 percent of Tennessee and Arkansas, which tied for having the highest combined taxes.

Texas’ statewide sales tax rate is 6.25 percent, with its average local sales tax rate at 1.94 percent.

Forty-five states impose state sales taxes; local sales taxes exist in 38 states, the analysis found.

The states with zero statewide sales taxes are Alaska, Delaware, Montana, New Hampshire and Oregon. Localities in Alaska, however, have the power to enact sales taxes, according to the foundation.

State and Local Sales Tax Rates

Rank State State Tax Rate Average Local Tax Rate Combined State and Average Local Sales Tax Rates
1 Tennessee 7% 2.47% 9.47%
2 Arkansas 6.5% 2.97% 9.47%
3 Louisiana 4.45% 5% 9.45%
4 Washington 6.5% 2.71% 9.21%
5 Alabama 4% 5.16% 9.16%
6 Oklahoma 4.5% 4.44% 8.94%
7 Illinois 6.25% 2.53% 8.78%
8 Kansas 6.5% 2.17% 8.67%
9 California 7.25% 1.41% 8.66%
10 New York 4% 4.49% 8.49%
11 Arizona 5.6% 2.79% 8.39%
12 Texas 6.25% 1.94% 8.19%
13 Missouri 4.23% 3.93% 8.15%
14 Nevada 6.85% 1.29% 8.14%
15 New Mexico 5.13% 2.69% 7.82%
16 Colorado 2.9% 4.73% 7.63%
17 South Carolina 6% 1.46% 7.46%
18 Minnesota 6.88% 0.56% 7.43%
19 Georgia 4% 3.33% 7.33%
21 Ohio 5.75% 1.42% 7.17%
20 Utah 6.1% 1.07% 7.17%
22 Mississippi 7% 0.07% 7.07%
23 Florida 6% 1.05% 7.05%
24 (tie) Indiana 7% 0% 7%
24 (tie) Rhode Island 7% 0% 7%
26 North Carolina 4.75% 2.22% 6.97%
27 Nebraska 5.5% 1.38% 6.88%
28 North Dakota 5% 1.85% 6.85%
29 Iowa 6% 0.82% 6.82%
30 New Jersey 6.63% -0.03% 6.6%
31 South Dakota 4.5% 1.90% 6.4%
32 West Virginia 6% 0.4% 6.4%
33 Connecticut 6.35% 0% 6.35%
34 Pennsylvania 6% 0.34% 6.34%
35 Massachusetts 6.25% 0% 6.25%
36 Vermont 6% 0.22% 6.22%
37 Idaho 6% 0.03% 6.03%
38 (tie) Kentucky 6% 0% 6%
38 (tie) Maryland 6% 0% 6%
38 (tie) Michigan 6% 0% 6%
41 Virginia 5.3% 0.35% 5.65%
42 Maine 5.5% 0% 5.5%
43 Wisconsin 5% 0.44% 5.44%
44 Wyoming 4% 1.32% 5.32%
45 Hawaii 4% 0.41% 4.41%
46 Alaska 0% 1.76% 1.76%
47 (tie) Delaware 0% 0% 0%
47 (tie) Montana 0% 0% 0%
47 (tie) New Hampshire 0% 0% 0%
47 (tie) Oregon 0% 0% 0%

Source: Tax Foundation

This is a revised article first published by The Center Square.

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