Tennessee Has the Highest Combined Sales Tax: How Does Your State Rate?
The issue of state sales tax is a constant area of discussion within the world of retail, since the surge of online shopping has meant that many consumers aren't paying these fees at the time of purchase. And since many people don't actually report these instances on their annual income tax returns, as they are legally expected to do, many state governments argue that they are unjustly missing out on a sizable revenue stream.
This issue will continue to warrant heavy debate amongst retailers and state politicians. And while they do so, many shoppers will also continue to base their shopping decisions on which online retailers collect taxes, and which don't. In this light, it's interesting to note which residents might have the greatest interest in shopping this way — and, conversely, which states have the most at stake if online retailers aren't collecting on their behalf.
Enter the Tax Foundation, which did a comprehensive evaluation of current state and local sales tax rates across the nation. As it turns out, Tennessee, Arkansas, Louisiana, Washington, and Oklahoma have the highest combined rates. And as the foundation notes, "Differences in sales tax rates cause consumers to shop across borders or buy products online."
To read more about the varying rates, read the full report here. Or, check out the infographic below to see where your state ranks. (You can click on the image to view a larger version.)
Readers, do any of you live in one of the pricier states for sales tax? Anyone lucky enough to be in the lower brackets?
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