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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).
The state tax rate is 6.25%; the total of all local taxes cannot exceed 2%. Therefore, state and local taxes combined cannot exceed 8.25%.