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Local sales taxes are collected in 38 states. 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).
They pay a combined sales tax of a whopping 16.5 percent when they buy within city limits â 10.25 percent at the city level plus 6.25 percent at the state level. Among states that do allow for a combined sales tax, Louisiana, Tennessee, Alabama, Arkansas and Washington have the highest rates when state and local taxes are added together. They range from 8.92 percent in Washington up to 9.98 percent in Louisiana as of 2017.