As lawmakers tackle the budget and look for ways to bring in more money, we have to take a look at the tax rates in the country.

Louisiana is #1 on the list of states with the highest combined sales tax in the country. Local sales taxes are collected in 38 states.

The Tax Foundation report shows:

  • The five states with the highest average combined state and local sales tax rates are Louisiana (9.98 percent), Tennessee (9.46 percent), Arkansas (9.30 percent), Alabama (9.01 percent), and Washington (8.92 percent).
  • Sales tax rates differ by state, but sales tax bases also impact how much revenue is collected from a tax and how the tax affects the economy.
  • Sales tax rate differentials can induce consumers to shop across borders or buy products online.

 

Forty-five states and the District of Columbia collect statewide sales taxes.

Five states don't have statewide sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon. But Alaska and Montana do let local governments charge sales taxes.