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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).
Delaware, Montana, New Hampshire, and Oregon levy no sales tax whatsoever at either level. California has the highest statewide sales tax rate at 7.25%. However, when considering the combined rate â which includes the average of local sales taxes â Louisianaâs sales tax rate of nearly 10% is highest of all states.