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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).
Local governments get their taxes in different ways to pay to run the government. Almost all states have a sales tax that adds to most purchases. This money goes to the local government to help pay for services. Most states have an income tax as well. Another major tax is property tax.