10 States With The Most Sales Tax: Tax Foundation

Sales tax revenue has plummeted since the start of the recession. And for certain states, that's been a particularly big blow.

Of course, sales tax rates vary significantly across states. But factor in local rates and the variation only becomes more apparent, according to the Tax Foundation. Indeed, just because a state has a high statewide rate doesn't mean it's total sales tax rate is one of the country's highest.

California, for example, has the highest statewide tax rate and a relatively low local average, keeping it out of the top ten highest overall sales tax rates. Conversely, Louisiana, which has the second lowest statewide tax rate in the country, has the third-highest overall sales tax because of a huge average local rate.

Nationwide, sales tax revenue dropped 30 percent in most states between 2007 and 2010. At least part of that related to the increasing prominence of online retailers, who aren't always required by law to collect sales taxes from customers located outside of the state.

But that may soon change. Last week, California Governor Jerry Brown signed a law requiring online retail giant Amazon collect sales taxes on all transactions with customers located within the state, putting "hundreds of millions of dollars back into critical services like education and public safety," the Governor said.

If such a law was applied to all states, it's been estimated that the added revenue would be enough to pay the salaries of an additional 460,000 teachers. Other states, like Connecticut, may soon follow California's example, but don't expect the drama to end there. Vice President of Amazon, Paul Misener says the issue won't be completely resolved until Congress steps in.

Here are the top 10 states with the highest combined sales tax rates as of July 1, 2011, according to the Tax Foundation:

Comments

[Neomi Regel]

04:33 AM on 10/05/2011

True look at this. http://www.swifto.com/?utm_source=Peni&utm_medium=05.10&utm_campaign=digg

[ryansjones2]

03:30 AM on 10/01/2011

Of course, a downside ot the internet sales tax in California is that most of the Amazon affiliates in California will probably lose their Amazon affiliate account (I've seen how they terminated affiliates from New York when New York enacted its internet sales tax as well). If I were an affiliate in California I would step up efforts to oppose the tax (especially if you care about your relationship with Amazon). It won't affect me though, since I am from Washington State, not california

[cqdeed]

12:37 PM on 10/07/2011

Yep, first thing I thought of. Amazon and affiliates moving out of state and possibly out of the country. Incentive to outsource in the making.

[D Bear]

11:56 AM on 09/30/2011

You need to add statewide and local income taxes as well. While WA has a high sales tax (not on food) - it has no income tax. Add 3.5% statewide and even more for some county/city income tax to say IL sales tax, and it handily beats even TN as the highest (near highest any way) taxing state.
Plus, unlike IL, here in WA we see actual results for most of our taxes, besides lining corrupt politicians pockets.

[Johnathan Lemons]

02:33 PM on 09/28/2011

Once again Huffington can't seem to get their Kansas Cities right...the picture for Kansas is of the skyline of Kansas City, Missouri. Next time try a picture of the skyline of Overland Park, Kansas. Thanks, your friends in KCMO.

[MathIsTruth]

11:41 PM on 10/17/2011

You're right that HP should have higher editorial standards, but really, which would be easier?

a) Have the citizens of KC, MO spend all their time correcting people in a country where people are horrible at geography, or

b) Change the name of the city to something less confusing, like Missouri City?

I say, go with (b).

[Taj Snead]

12:58 PM on 09/28/2011

alot of those states are "red' states. hmmmm

[jinjinpinti]

04:57 PM on 09/28/2011

Washington state isn't, and we do have high sales taxes (none on food) but we also have a decent standard of living here. Now, if we could just do something about monocloud.

[Skate Free]

07:46 PM on 09/28/2011

Hey Taj,
CA, IL, NY, WA, LA,.. Hmmmmm
Can you even count to ten?

SK8

[Taj Snead]

12:20 AM on 09/29/2011

Well since CA isnt on there and LA is a RED southern state that leaves three three states that arent that proves my point that there are alot of red states

[OhManOhMan]

12:37 PM on 09/28/2011

WHAT?!?! Tenn is #1 highest sale tax??? wow!!

[JScott]

07:17 AM on 09/28/2011

Hmm Calif. isn't even there. Yup the reality is is that Calif. acutally falls in the middle. It isn't a high tax state despite what the Ca. bashers say.

Wa. state is no surprise they have no state income tax......but yet they do tax just about everything else.

[StevenRussell1]

04:51 AM on 09/28/2011

"God Bless America! Land that I love! Stand beside Her, and Guide Her, through the night with the Light from above!"

'IN GOD WE TRUST'!

"Choose ye this day whom thou shalt serve, but as for me and my house, we will serve the Lord."

[zeutern]

01:22 AM on 09/28/2011

Go figur. Mostly GOP States.

[brendaf031266]

01:21 AM on 09/28/2011

Texas has no State tax and a 8.25% sale tax. We have a 3 bdrm 2 bath home with a 40x60 shop (built in 2008) that sits on 3 lots and our property taxes this year were a little over $1200.00 with a homestead exeption. Not bad compared to most states.

[MathIsTruth]

11:44 PM on 10/17/2011

Now, if you could figure out a way to live in that house without having to actually live in Texas, then you'd have something.

[frank1946]

01:10 AM on 09/28/2011

America will recover after we Bankrupt ourselves and start over !

California may not recover, ever !

DEMS have done permanent damage to my home State, I have moved !

[FreedomMan]

11:03 PM on 09/27/2011

Arizona, the State flower is really the used white plastic bag, rest stops are non existence in northern Arizona so people just pull off the side of the roads and do it, plastic bottles full of yellow liquid litter the side of the highways, want a public trash can somewhere well you can just forget that, there are none!.... plenty of pot big holes every where though...what kind of highway repair does DOT do, mostly Gypsy blacktop, that is about it. State and city level loves to tax its people and tourists to excess and no one seems to know where the money goes.

[ccdae5]

10:35 PM on 09/27/2011

In Indiana our sales tax rate is 7% on non-food items and 0% on food, but we traded that high sales tax rate to get our residential property tax rates capped at a max of 1% of market value. Quite a good deal in my view because I can control how much sales tax I pay easier than my property tax.

[Combat Marine]

09:49 PM on 09/27/2011

So Jerry Brown wants to gain more sales tax to support more illegal alien criminals. Great Jerry. Let's move them into your back yard so you can pick up the trash they dump everywhere.

I hope this backfires badly on you.

[bennett975]

11:02 PM on 09/27/2011

Jerry just passed a new sales tax yesterday on fresh eggs. Democrats don't have any plan on reducing spending only coming up with new ways to take the peoples money to fund their wants. He passed another new law making it a felony to steal certain recycle metals and at the same time is releasing 40,000 prisoners from the state prisons. Is this guy actually that dumb? Semper Fi

[Combat Marine]

11:36 PM on 09/27/2011

Yes, he actually is that dumb. Semper Fi, Brother

F&F

[tr00fdetector3]

09:03 PM on 09/27/2011

Tennessee has NO state income tax. I live in Tennessee and want to keep it that way!