Texas residents pay 8.19% rate in combined local, state sales taxes

The combined average local and state sales tax rate in Texas is 8.19 as of Jan. 1, which is the 13th highest rate among the 50 states, according to a new analysis from the Tax Foundation.

The state’s sales tax rate now stands at 6.25 percent, while the average local sales tax – weighted for population – is 1.94 percent, the Tax Foundation analysis states. And the maximum local sales tax rate in Texas is 2 percent, according to the study.

Thirty-eight states collect local sales tax revenues, the Tax Foundation reported, while 45 states levy a statewide sales tax. Alaska, Delaware, Montana, New Hampshire and Oregon do not have a statewide sales tax in place, but among these five, only Alaska allows local governments to levy their own sales taxes, the study said.

Despite the variations in sales tax dependence among the states, the Tax Foundation considers sales taxes more transparent and easier for taxpayers to understand than other types of revenue generators, such as the graduated income tax.

Combined State and Local Sales Tax Rates by State

State State Tax Rate Rank Average Local Tax Rate Combined Rate Rank Maximum Local Tax Rate
Tennessee 7.00% 2 2.53% 9.53% 1 2.75%
Louisiana 4.45% 38 5.07% 9.52% 2 7.00%
Arkansas 6.50% 9 2.97% 9.47% 3 5.13%
Alabama 4.00% 40 5.22% 9.22% 4 7.50%
Washington 6.50% 9 2.71% 9.21% 5 4.00%
Illinois 6.25% 13 2.83% 9.08% 6 10.00%
Oklahoma 4.50% 36 4.44% 8.94% 7 7.00%
Kansas 6.50% 9 2.18% 8.68% 8 4.00%
California 7.25% 1 1.41% 8.66% 9 2.50%
New York 4.00% 40 4.52% 8.52% 10 4.88%
Arizona 5.60% 28 2.80% 8.40% 11 5.60%
Nevada 6.85% 7 1.47% 8.32% 12 1.65%
Texas 6.25% 13 1.94% 8.19% 13 2.00%
Missouri 4.23% 39 3.96% 8.18% 14 5.63%
New Mexico 5.13% 32 2.69% 7.82% 15 4.13%
Colorado 2.90% 45 4.75% 7.65% 16 8.30%
South Carolina 6.00% 17 1.46% 7.46% 17 3.00%
Minnesota 6.88% 6 0.58% 7.46% 18 2.00%
Georgia 4.00% 40 3.31% 7.31% 19 5.00%
Utah 6.10% 16 1.08% 7.18% 20 2.95%
Ohio 5.75% 27 1.42% 7.17% 21 2.25%
Mississippi 7.00% 2 0.07% 7.07% 22 1.00%
Florida 6.00% 17 1.05% 7.05% 23 2.50%
Indiana 7.00% 2 0.00% 7.00% 24 0.00%
Rhode Island 7.00% 2 0.00% 7.00% 24 0.00%
North Carolina 4.75% 35 2.22% 6.97% 26 2.75%
Iowa 6.00% 17 0.94% 6.94% 27 1.00%
Nebraska 5.50% 29 1.43% 6.93% 28 2.50%
North Dakota 5.00% 33 1.86% 6.86% 29 3.50%
New Jersey 6.63% 8 -0.03% 6.60% 30 3.31%
West Virginia 6.00% 17 0.41% 6.41% 31 1.00%
South Dakota 4.50% 36 1.90% 6.40% 32 4.50%
Connecticut 6.35% 12 0.00% 6.35% 33 0.00%
Pennsylvania 6.00% 17 0.34% 6.34% 34 2.00%
Massachusetts 6.25% 13 0.00% 6.25% 35 0.00%
Vermont 6.00% 17 0.22% 6.22% 36 1.00%
Idaho 6.00% 17 0.03% 6.03% 37 3.00%
Kentucky 6.00% 17 0.00% 6.00% 38 0.00%
Maryland 6.00% 17 0.00% 6.00% 38 0.00%
Michigan 6.00% 17 0.00% 6.00% 38 0.00%
Virginia 5.30% 31 0.35% 5.65% 41 0.70%
Maine 5.50% 29 0.00% 5.50% 42 0.00%
Wisconsin 5.00% 33 0.46% 5.46% 43 1.75%
Wyoming 4.00% 40 1.34% 5.34% 44 2.00%
Hawaii 4.00% 40 0.44% 4.44% 45 0.50%
Alaska 0.00% 46 1.76% 1.76% 46 7.50%
Delaware 0.00% 46 0.00% 0.00% 47 0.00%
Montana 0.00% 46 0.00% 0.00% 47 0.00%
New Hampshire 0.00% 46 0.00% 0.00% 47 0.00%
Oregon 0.00% 46 0.00% 0.00% 47 0.00%

Source: Tax Foundation

This article was first published by The Center Square.

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