Sales Tax by State 2026: All 50 States Combined Rates

Sales Tax Rates by State 2026: State, Local, and Combined Rates Explained

Sales tax in the United States is uniquely complex: it is not a federal tax at all. Each state sets its own base rate, each county or city may add a local rate on top, and the rules about what is and is not taxable vary enormously. The result is over 12,000 distinct sales tax jurisdictions across the US — a patchwork that affects every consumer, business, and online seller.

Five states have no state sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. However, Alaska allows local governments to impose their own sales taxes, so many Alaskan communities do have local rates. The combined effective sales tax rate in some Alaskan towns exceeds 9%.

At the other extreme, Tennessee and Louisiana have combined state and average local rates of approximately 9.55% — among the highest in the nation. These states rely heavily on sales tax revenue, partly because they have lower income taxes (Tennessee has no income tax at all, and Louisiana significantly cut its income tax in 2025).

This guide provides the 2026 state sales tax rate and average combined rate (state + local) for all 50 states, along with key information about grocery exemptions and internet sales tax requirements.

Sales Tax Rates for All 50 States 2026: State Rate + Average Local Rate

The table below shows the state sales tax rate, average local sales tax rate, and combined average rate for every US state in 2026. Local rates are averages — the actual rate you pay depends on the specific city or county.

Note: Local rates are averages weighted by population. Actual rates vary significantly within a state. For example, within Texas, rates range from the state minimum of 6.25% in unincorporated rural areas to 8.25% in Houston, Dallas, and most major cities.

Online Sales Tax, Grocery Exemptions, and State-by-State Differences

Internet Sales Tax After Wayfair (2018)

Before 2018, online sellers could avoid collecting sales tax in states where they had no physical presence (no store, warehouse, or employees). The Supreme Court's 2018 South Dakota v. Wayfair decision changed this permanently. States can now require remote sellers to collect sales tax based on "economic nexus" — typically if the seller makes more than $100,000 in annual sales to that state, or more than 200 transactions.

As of 2026, every state with a sales tax has adopted economic nexus rules. This means online businesses — including Amazon marketplace sellers, Etsy sellers, Shopify stores, and other e-commerce operations — must collect and remit sales tax in any state where they meet the economic nexus threshold. The practical burden on small online sellers is significant.

Grocery Exemptions: A State-by-State Patchwork

Whether groceries are subject to sales tax varies enormously by state:

• Fully exempt: Most food purchased for home preparation is exempt in approximately 30 states, including California, Florida, New York, Texas, Washington, New Jersey, and most others.
• Reduced rate: Some states apply a lower rate to groceries. Tennessee applies 4% (vs. 7% regular), Virginia applies 2.5%, North Carolina 2%, Missouri 1.225%.
• Full rate: Alabama, Idaho, Mississippi, and South Dakota apply the full state sales tax rate to groceries with no exemption or reduction.
• Kansas (2025 change): Kansas eliminated its grocery sales tax entirely in 2025, reducing the rate from 4% to 0% on food items.

What Is and Isn't Taxed: Common Exemptions

Beyond groceries, most states exempt prescription medications, medical devices, and agricultural supplies. Some states exempt clothing below a certain price threshold (New York exempts clothing items under $110, Pennsylvania exempts most clothing). Services are generally not subject to sales tax in most states, though this is changing — South Dakota, Hawaii, and a few others do tax many services.

For No-Income-Tax States: Sales Tax Often Fills the Gap

States with no income tax often rely more heavily on sales tax for revenue. Tennessee's 9.55% combined rate is the highest in the nation — and Tennessee has no income tax on wages. Washington's 9.38% combined rate funds government without an income tax (though Washington now has a capital gains tax for high earners). By contrast, Oregon has no sales tax but has a 9.9% top income tax rate.