Question 1

Which states have no sales tax?

Accepted Answer

Five states charge no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Note that Alaska allows cities and boroughs to levy their own local sales taxes of up to roughly 7.5%, so purchases there are not always tax-free.

Question 2

Which state has the highest sales tax?

Accepted Answer

California has the highest statutory state-level rate at 7.25%. Once average local taxes are included, Louisiana currently has the highest combined rate in the country at roughly 10%, with Tennessee, Arkansas, and Washington close behind.

Question 3

Why is the rate at my zip code different from my state rate?

Accepted Answer

Most states let counties, cities, and special districts add their own sales taxes on top of the state rate. Your total rate is the state rate plus every local rate that applies at the point of sale — which is why two zip codes in the same state can have different totals. The rates in this table are the statutory state-level rates.

Question 4

Do freelancers need to charge sales tax on services?

Accepted Answer

In most states, professional and creative services (design, writing, consulting, development) are not subject to sales tax. A minority of states — including Hawaii, New Mexico, South Dakota, and West Virginia — tax services broadly, and several others tax specific services. Check your state's rules or ask a CPA if you sell services.

Question 5

What is economic nexus and when do I have to collect another state's tax?

Accepted Answer

Since the Wayfair decision (2018), states can require out-of-state sellers to collect their sales tax once sales into the state pass a threshold — commonly $100,000 in sales or 200 transactions per year. Below the threshold, you generally only collect tax for states where you have a physical presence.

State	State rate	Local taxes?	Notes
Alabama	4%	Yes
Alaska	None	Yes	No state sales tax, but localities may charge up to ~7.5%
Arizona	5.6%	Yes
Arkansas	6.5%	Yes
California	7.25%	Yes	Includes mandatory local portion; district taxes add more
Colorado	2.9%	Yes	Lowest non-zero state rate; local rates often add 4–8%
Connecticut	6.35%	No
Delaware	None	No
District of Columbia	6%	No
Florida	6%	Yes
Georgia	4%	Yes
Hawaii	4%	Yes	General excise tax (GET) — levied on the seller, usually passed on
Idaho	6%	Yes
Illinois	6.25%	Yes
Indiana	7%	No
Iowa	6%	Yes
Kansas	6.5%	Yes
Kentucky	6%	No
Louisiana	5%	Yes	Raised from 4.45% to 5% in 2025
Maine	5.5%	No
Maryland	6%	No
Massachusetts	6.25%	No
Michigan	6%	No
Minnesota	6.875%	Yes
Mississippi	7%	Yes
Missouri	4.225%	Yes
Montana	None	No
Nebraska	5.5%	Yes
Nevada	6.85%	Yes
New Hampshire	None	No
New Jersey	6.625%	No
New Mexico	4.875%	Yes	Gross receipts tax — levied on the seller, usually passed on
New York	4%	Yes
North Carolina	4.75%	Yes
North Dakota	5%	Yes
Ohio	5.75%	Yes
Oklahoma	4.5%	Yes
Oregon	None	No
Pennsylvania	6%	Yes
Rhode Island	7%	No
South Carolina	6%	Yes
South Dakota	4.2%	Yes	Temporary cut; scheduled to return to 4.5% in July 2027
Tennessee	7%	Yes
Texas	6.25%	Yes
Utah	6.1%	Yes	Includes 1.25% mandatory statewide local rate
Vermont	6%	Yes
Virginia	5.3%	Yes	Includes 1% mandatory statewide local rate
Washington	6.5%	Yes
West Virginia	6%	Yes
Wisconsin	5%	Yes
Wyoming	4%	Yes

Sales Tax Rates by State (2026)

Which states have no sales tax?

Which state has the highest sales tax?

Why is the rate at my zip code different from my state rate?

Do freelancers need to charge sales tax on services?

What is economic nexus and when do I have to collect another state's tax?