MARCH 2016

THE COUNCIL OF STATE GOVERNMENTS

CAPITOL RESEARCH
FISCAL & ECONOMIC DEVELOPMENT

2016 State Sales Tax Rates

In 2016, 45 states plus the District of Columbia have sales taxes in place and five states do not.
Tax rates in 2016 remained relatively unchanged from 2015, but have been creeping slowly upward
over the past decade.1
In 2016, state sales tax rates look a lot like they did
in 2015.
In 2015, 45 states plus the District of Columbia levied
a sales taxthe same was true on Jan. 1, 2016.
In 2015, five states (Alaska, Delaware, Montana,
New Hampshire and Oregon) did not levy a sales
taxthe same five states did not levy a sales tax on
Jan. 1, 2016.
Sales tax rates (or lack thereof) remained the same
as 2015 rates in 49 states and the District of Columbia
on Jan. 1, 2016.
Those rates range from a low of 2.9 percent in
Colorado to a high of 7.5 percent in California,
with an average rate 5.65 percent.
From Jan. 1, 2015 to Jan. 1, 2016, Kansas was the
only state to institute a sales tax rate change.
Kansas legislators passed the tax rate hike in 2015
from 6.15 percent to 6.5 percentto address
budgetary shortfalls. The increase went into effect
on July 1, 2015.
While little has changed since last year, sales tax rates
overall have crept up slowly since 2006.
In 2006, the same five states (Alaska, Delaware,
Montana, New Hampshire and Oregon) did not
levy a sales tax.
Also in 2006, the lowest sales tax rate was 2.9 percent, in Coloradothe same as in 2016.
The highest sales tax rate in 2006 was 7.0 percent
a three way tie in Mississippi, Rhode Island and
Tennessee. Thats relatively similar to the highest
rate in 2016: 7.5 percent in California.
However, in 2006, the average sales tax rate (for
those 45 states plus the District of Columbia that
levied a sales tax) was 5.32 percentmore than 0.3
percentage points lower than the average in 2016.
Thats because from 200616, 19 states increased
their sales tax rates.

Those increases ranged from less than 0.5 percentage

points in six states (Connecticut, Minnesota, Nevada,
New Mexico, North Carolina and Ohio)to the
largest rate increase in Virginia, an increase from
4.0 percent to 5.3 percent.
RESOURCES
2016 and historical sales tax rates are collected and reported by the Federation of Tax Administrators, http://www.taxadmin.org/current-tax-rates.

Jennifer Burnett, Director, The Council of State Governments Fiscal and Economic
Development Policy, jburnett@csg.org

The Council of State Governments

State Sales Tax Rates, Jan. 1, 2016

WA
6.5
OR
No Sales Tax

NV
6.85
CA
7.5

MT
No Sales Tax

ID
6.0

WY
4.0
UT
6.0

ND
5.0

MN
6.875

SD
4.0

KS
6.5
OK
4.5

NM
5.125
TX
6.25

AK
No Sales
Tax

WI
5.0

IA
6.0

NE
5.5

CO
2.9

AZ
5.6

NH
No Sales
VT Tax
ME
6.0
5.5

MO
4.225
AR
6.5
LA
4.0

IL
6.25

NY
4.0

MI
6.0
OH
5.75

IN
7.0

KY
6.0

AL
4.0

WV
6.0

VA
5.3

RI 7.0
CT 6.35
NJ 7.0
DE No Sales Tax
MD 6.0

NC 4.75

TN 7.0

MS
7.0

PA
6.0

MA 6.25

GA
4.0

SC
6.0

FL
6.0
HI
4.0

No Sales Tax
< 4 Percent
4 4.9 Percent
55.9 Percent
6 6.9 Percent
7 Percent +

THE COUNCIL OF STATE GOVERNMENTS

State Sales Tax Rates

Sales Tax Rates (Percent)
Jan. 1, 2006
Alabama
Alaska
Arizona
Arkansas
California (a)
Colorado
Connecticut
Delaware
Dist. of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah (b)
Vermont
Virginia ( c)
Washington (d)
West Virginia
Wisconsin
Wyoming

Jan. 1, 2015

Change in Rate (Percentage Points)

Jan. 1, 2016

201516

200616

4.0
4.0
4.0

......................................................................................................................... No Sales Tax.........................................................................................................................

5.6
5.6
5.6

6.0
6.5
6.5

0.5
6.3
7.5
7.5

1.25
2.9
2.9
2.9

6.00
6.35
6.35

0.35
......................................................................................................................... No Sales Tax.........................................................................................................................
5.75
5.75
5.75

6.0
6.0
6.0

4.0
4.0
4.0

4.0
4.0
4.0

5.0
6.0
6.0

1.0
6.25
6.25
6.25

6.0
7.0
7.0

1.0
5.0
6.0
6.0

1.0
5.30
6.15
6.5
0.35
1.2
6.0
6.0
6.0

4.0
4.0
4.0

5.0
5.5
5.5

0.5
5.0
6.0
6.0

1.0
5.00
6.25
6.25

1.25
6.0
6.0
6.0

6.500
6.875
6.875

0.375
7.0
7.0
7.0

4.225
4.225
4.225

......................................................................................................................... No Sales Tax.........................................................................................................................

5.5
5.5
5.5

6.5
6.9
6.85

0.35
......................................................................................................................... No Sales Tax.........................................................................................................................
6.0
7.0
7.0

1.0
5.000
5.125
5.125

0.125
4.0
4.0
4.0

4.50
4.75
4.75

0.25
5.0
5.0
5.0

5.50
5.75
5.75

0.25
4.5
4.5
4.5

......................................................................................................................... No Sales Tax.........................................................................................................................

6.0
7.0
5.0
4.0
7.0
6.25
4.8
6.0
4.0
6.5
6.0
5.0
4.0

6.0
7.0
6.0
4.0
7.0
6.25
6.0
6.0
5.3
6.5
6.0
5.0
4.0

6.0
7.0
6.0
4.0
7.0
6.25
6.0
6.0
5.3
6.5
6.0
5.0
4.0

1.0

1.2

1.3

Source: Compiled by the Federation of Tax Administrators, reported in CSGs The Book of the States.
(a) Rate is scheduled to decrease to 7.25 percent on 1/1/17.
(b) Includes statewide tax of 1.25 percent levied by local governments in Utah.
(c) Includes statewide 1.0 percent tax levied by local governments in Virginia.
(d) Washington tax rate may fall to 5.5 percent on 4/15/16, if state legislature does not act on Initiative 1366.

THE COUNCIL OF STATE GOVERNMENTS