Which Us States Have The Lowest Sales Tax?
Introduction
If you’re shopping for goods or services within the United States, the amount of sales tax you pay could vary significantly depending on the state you’re in. Some states have no sales tax or a low rate, while others impose a high rate that can add up quickly. Knowing which states have the lowest sales tax can help you save money and time when you’re shopping for goods or services. In this article, we’ll examine the states with the lowest sales tax rates in 2023 and discuss how they compare to the rest of the US.
States with the Lowest Sales Tax Rates
The states with the lowest sales tax rates are Alaska, Delaware, Montana, New Hampshire, and Oregon. Alaska has no sales tax, while the other four states have rates ranging from 0.5-6%. None of these states impose any local or county-level sales tax, which makes them particularly attractive for large purchases. These states also have tax-free shopping holidays, which can help you save even more on large purchases.
Other States with Low Sales Tax Rates
In addition to the five states listed above, there are several other states that have relatively low sales tax rates. These states include Hawaii (4-4.5%), Maine (5.5%), Maryland (6%), and Wisconsin (5% for most items, but lower for food and drugs). While these states don’t have the lowest rates in the nation, they are among the lowest.
States with High Sales Tax Rates
The states with the highest sales tax rates in 2023 are Louisiana (10%), Tennessee (9.5%), California (8.5%), Washington (8.5%), and Arizona (8.1%). Louisiana has the highest rate, which is more than double the rate in the states with the lowest rates. These states also have the most complex sales tax systems, with multiple local and county-level taxes levied in addition to the state rate.
Exemptions and Special Rules
In addition to the rate, the states also have different rules regarding exemptions and special rules. For example, some states exempt certain types of goods or services from sales tax, while others impose special taxes on certain items, such as luxury items or alcohol. Knowing the rules for each state can help you save money when you’re shopping.
Conclusion
The states with the lowest sales tax rates in 2023 are Alaska, Delaware, Montana, New Hampshire, and Oregon. These states have no local or county-level taxes and offer tax-free shopping holidays, which can help you save even more on large purchases. Other states, such as Hawaii, Maine, Maryland, and Wisconsin, also have relatively low rates. On the other end of the spectrum, Louisiana has the highest rate, more than double the rate of the states with the lowest rates. Knowing the sales tax rate and rules for each state can help you save money when you’re shopping for goods and services.