Six states (Arkansas, Missouri, Nebraska, North Dakota, Texas, and Washington) actually saw small local increases while still improving their rankings. The last rates update has been made on July 2021. Sale-tax.com is your one stop shop for all US city sales tax rates. [16] Len Lazarick, “Raise taxes, and they’ll move, constituents tell one delegate,” Marylandreporter.com, Aug. 3, 2011, http://marylandreporter.com/2011/08/03/raise-taxes-and-theyll-move-constituents-tell-one-delegate/. Average local rates rose the most in Illinois, changing the state’s combined ranking from 7th highest to 6th highest. 0% – 9.0% Some local jurisdictions do not impose a sales tax.. Yes/No Some of the cities and counties do apply use tax. Sales Tax Clearinghouse publishes quarterly sales tax data at the state, county, and city levels by ZIP code. The five states with the highest average combined state and local sales tax rates are Tennessee (9.53 percent), Louisiana (9.52 percent), Arkansas (9.47 percent), Washington (9.21 percent), and Alabama (9.22 percent). The five states with the lowest average combined rates are Alaska (1.76 percent), Hawaii (4.44 percent), Wyoming (5.34 percent), Wisconsin (5.46 percent), and Maine (5.50 percent). A narrow tax base is non-neutral and inefficient. It should also be noted that while the Census Bureau reports population data using a five-digit identifier that looks much like a ZIP code, this is actually what is called a ZIP Code Tabulation Area (ZCTA), which attempts to create a geographical area associated with a given ZIP code. The model City Tax Code provides the cities with an option to not tax food. Under the new Arizona law, a threshold has been established for remote sellers to pay TPT if their annual gross retail sales or income from online sales into Arizona is more than $200,000 in 2019, $150,000 in 2020 and $100,000 in 2021 and thereafter. [19] Justin M. Ross, “A Primer on State and Local Tax Policy: Trade-Offs among Tax Instruments,” Mercatus Center at George Mason University, Feb. 25, 2014, http://mercatus.org/publication/primer-state-and-local-tax-policy-trade-offs-among-tax-instruments. While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts. For example, Tennessee has high sales taxes but no wage income tax, whereas Oregon has no sales tax but high income taxes. The state general sales tax rate of Arizona is 5.6%. [9], Nevada’s combined ranking moved from 14th to 12th. (a) City, county and municipal rates vary. In fact, the tax costs $2.00 per pack of 20 cigarettes, or 10 cents per stick. The 10.1% sales tax rate in Seattle consists of 6.5% Washington state sales tax and 3.6% Seattle tax. Amount of taxes Arizona Alcohol Tax. Sales tax rates differ by state, but sales. For our purposes, ZIP codes that do not have a corresponding ZCTA population figure are omitted from calculations. This report ranks states based on tax rates and does not account for differences in tax bases (e.g., the structure of sales taxes, defining what is taxable and nontaxable). The tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority. [2] This number includes mandatory add-on taxes which are collected by the state but distributed to local governments. Arizona Tax Rate Look Up Resource. Amount after taxes. 5.6%6.1%6.3%6.35%6.43%6.6%6.712%6.9%7.2%7.6%7.8%8.05%8.1%8.3%8.35%8.412%8.43%8.5%8.55%8.6%8.7%8.8%8.9%9.1%9.18%9.181%9.2%9.212%9.3%9.43%9.48%9.6%9.8%9.85%9.9%10%10.1%10.2%10.35%10.4%10.712%10.9%11.1%11.2% Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services. [10] Michael Lyle, “Clark County approves raising sales tax of 1/8 of a cent,” Nevada Current, Sept. 3, 2019, https://www.nevadacurrent.com/2019/09/03/clark-county-approves-raising-sales-tax-1-8-of-a-cent/. The state of Arizona has relatively low property tax rates, thanks in part to a law that caps the total tax rate on owner-occupied homes. 1, 2019, https://tax.utah.gov/sales/ratechanges. You would charge all of your Arizona customers, no matter where in the state they live, that 9.9 % sales tax rate. We work hard to make our analysis as useful as possible. [14], At the statewide level, businesses sometimes locate just outside the borders of high sales-tax areas to avoid being subjected to their rates. The rate imposed is equal to the state rate where the car will be registered. Simplify Florida sales tax compliance! (The state rate is now officially 4.85 percent, but the state collects an additional 1.25 percent in mandatory taxes that are distributed to local governments, in addition to local option taxes imposed by localities.[4]). For over 80 years, our goal has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. Sales tax rates differ by state, but sales tax bases also impact how much revenue is collected from a tax and how the tax affects the economy. [13] Mehmet Serkan Tosun and Mark Skidmore, “Cross-Border Shopping and the Sales Tax: A Reexamination of Food Purchases in West Virginia,” Research Paper 2005-7, Regional Research Institute, West Virginia University, September 2005, http://rri.wvu.edu/wp-content/uploads/2012/11/Tosunwp2005-7.pdf. Help us continue our work by making a tax-deductible gift today. Other 2021 sales tax fact for Arizona As of 2021, there is 94 out of 269 cities in Arizona that charge city sales tax for a ratio of 34.944%. You can print a 10.1% sales tax table here.For tax rates in other cities, see Washington sales taxes by city and county. See “Second Quarter 2019 Changes,” Tax.Utah.gov, Apr. [4] This rate includes two levies, summing 1.25 percentage points, which are imposed statewide but distributed to localities. Arizona has recent rate changes (Wed Jan 01 2020). Of these, Alaska allows localities to charge local sales taxes.[1]. [18] Liz Malm and Richard Borean, “How Does Your State Sales Tax See That Blue and Black (or White and Gold) Dress?” Tax Foundation, Feb. 27, 2015, http://taxfoundation.org/blog/how-does-your-state-sales-tax-see-blue-and-black-or-white-and-gold-dress. Find the latest United States sales tax rates. For instance, most states exempt groceries from the sales tax, others tax groceries at a limited rate, and still others tax groceries at the same rate as all other products. Local sales taxes are collected in 38 states. Because of this, some sources will describe California’s sales tax as 6.0 percent. We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. State State Rate Range of Local Rates Local Rates Apply to Use Tax; Alabama: 4.000%. Alaska has no statewide sales tax, but it allows cities and towns to levy sales taxes. This resource can be used to find the transaction privilege tax rates for any location within the State of Arizona. Depending on local municipalities, the total tax rate can be as high as 10.1%. A property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. For questions, comments or suggestions, or if you notice a problem with one of our sales tax calculator or rates, please contact info@salestaxstates.com. [7] Terry L. Jones and Steve Hardy, “East Baton Rouge’s new sales tax starts Monday; See early plans for ambitious MovEBR projects,” The (Baton Rouge) Advocate, Mar. It must be noted that some cities in New Jersey are in “Urban Enterprise Zones,” where qualifying sellers may collect and remit at half the 6.625 percent statewide sales tax rate (3.3125 percent), a policy designed to help local retailers compete with neighboring Delaware, which forgoes a sales tax. (d) Special taxes in local resort areas are not counted here. The sales tax rate in Sedona is made up of the 5.6 % Arizona sales tax rate, the 1.3 % Coconino County rate and the 3% Sedona rate, for a total of 9.9 %. [15] Delaware actually uses its highway welcome sign to remind motorists that Delaware is the “Home of Tax-Free Shopping.”[16]. Before joining the team, she interned at the Mackinac Center for Public Policy, the Reason Foundation, and the Illinois Policy Institute. It is worth noting that population numbers are only published at the ZIP code level every 10 years by the U.S. Census Bureau, and that editions of this calculation published before July 1, 2011, do not utilize ZIP code data and are thus not strictly comparable. A sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. [17] Some states exempt clothing or tax it at a reduced rate. Enter your desired United States zip code to get more accurate sales tax rate. [14] Susan Chandler, “The sales tax sidestep,” Chicago Tribune, July 20, 2008, http://articles.chicagotribune.com/2008-07-20/business/0807190001_1_sales-tax-tax-avoidance-tax-landscape. See also T. Randolph Beard, Paula A. Gant, and Richard P. Saba, “Border-Crossing Sales, Tax Avoidance, and State Tax Policies: An Application to Alcohol,” Southern Economic Journal 64:1 (July 1997), 293-306. No changes Has been made in Arizona for county, city and/or special rates in current quarter of 2021 compared to 2020 Q4. To this end, we show advertising from partners and use Google Analytics on our website. [8] Meanwhile, a 1 percent increase in Tuscaloosa’s local sales tax helped take Alabama’s combined rank from 5th to 4th. 5.6% is the smallest possible tax rate (Phoenix, Arizona)6.1%, 6.3%, 6.35%, 6.43%, 6.6%, 6.712%, 6.9%, 7.2%, 7.6%, 7.8%, 8.05%, 8.1%, 8.3%, 8.35%, 8.412%, 8.43%, 8.5%, 8.55%, 8.6%, 8.7%, 8.8%, 8.9%, 9.1%, 9.18%, 9.181%, 9.2%, 9.212%, 9.3%, 9.43%, 9.48%, 9.6%, 9.8%, 9.85%, 9.9%, 10%, 10.1%, 10.2%, 10.35%, 10.4%, 10.712%, 10.9%, 11.1% are all the other possible sales tax rates of Arizona cities.11.2% is the highest possible tax rate (Superior, Arizona), The average combined rate of every zip code in Arizona is 7.695%. [2] Four states tie for the second-highest statewide rate, at 7 percent: Indiana, Mississippi, Rhode Island, and Tennessee. Five states follow with 4 percent rates: Alabama, Georgia, Hawaii, New York, and Wyoming. Part of this increase can be traced to the city of Evanston, which raised its city tax from 1 percent to 1.25 percent,[5] and to Marion City, which raised its sales tax from 8.75 percent to 9.5 percent in an attempt to pay down city-levied property taxes. Research indicates that consumers can and do leave high-tax areas to make major purchases in low-tax areas, such as from cities to suburbs. (e) Salem County, N.J., is not subject to the statewide sales tax rate and collects a local rate of 3.3125%. On a nationwide scale, Arizona taxes cigarettes at a high rate. [19] Despite agreement in theory, the application of most state sales taxes is far from this ideal. Please refer to the Arizona website for more sales taxes information. As of January 2005, there is no estate tax in Arizona. By continuing your navigation on Sales Tax States or by clicking on the close button you, Previous Years / Quarters Sales Tax Calculators. A similar situation exists in Utah and Virginia. The Arizona's tax rate may change depending of the type of purchase. With local taxes, the total sales tax rate is between 5.600% and 11.200%. The Missouri (MO) state sales tax rate is currently 4.225%. [3], No state rates have changed since April 2019, when Utah’s state-collected rate increased from 5.95 percent to 6.1 percent. Cities and/or municipalities of Arizona are allowed to collect their own rate that can get up to 5% in city sales tax.Every 2021 combined rates mentioned above are the results of Arizona state rate (5.6%), the county rate (0% to 2%), the Arizona cities rate (0% to 5%), and in some case, special rate (0% to 1.75%). The state sales tax rate in Arizona is 5.600%. [5] Joshua Irvine, “Aldermen vote to raise sales tax,” The Daily Northwestern, Sept. 24, 2019, https://dailynorthwestern.com/2019/09/24/city/aldermen-vote-to-raise-sales-tax/. Sales tax rate differentials can induce consumers to shop across borders or buy products online. Marketplace Facilitators [13] For example, evidence suggests that Chicago-area consumers make major purchases in surrounding suburbs or online to avoid Chicago’s 10.25 percent sales tax rate. Sales tax rate differentials can induce consumers to shop across borders or buy products online. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and global levels. These rates are weighted by population to compute an average local tax rate. The five states with the highest average combined state and local sales tax rates are Tennessee (9.53 percent), Louisiana (9.52 percent), Arkansas (9.47 percent), Washington (9.21 percent), and Alabama (9.22 percent). Would you consider telling us more about how we can do better? These rates can be substantial, so a state with a moderate statewide sales tax rate could actually have a very high combined state and local rate compared to other states. Amount before taxesSales tax rate(s) For example, the National Press Building in Washington, D.C., has its own ZIP code solely for postal reasons. A broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates. Get precise United States sales tax calculator. [1] Special taxes in Montana’s resort areas are not included in our analysis. The Tax Foundation, an independent think tank, weights local sales taxes and adds them to statewide sales taxes. [3] The sales taxes in Hawaii and South Dakota have bases that include many services and so are not strictly comparable to other sales taxes. Sources: Sales Tax Clearinghouse; Tax Foundation calculations; State Revenue Department websites, Avoidance of sales tax is most likely to occur in areas where there is a significant difference between jurisdictions’ rates. We weight these numbers according to Census 2010 population figures to give a sense of the prevalence of sales tax rates in a particular state. [11] “New Iowa Local Option Tax Jurisdictions,” Iowa Department of Revenue, Jan. 1, 2020, https://tax.iowa.gov/businesses/local-option-sales-tax/new-iowa-local-option-tax-jurisdictions. We include these in their state sales tax. [20] For a representative list, see Jared Walczak, 2020 State Business Tax Climate Index, Tax Foundation, Oct. 22, 2019, https://taxfoundation.org/2020-state-business-tax-climate-index/. Our work depends on support from members of the public like you. Retail sales taxes are one of the more transparent ways to collect tax revenue. The average effective tax rate in the state is 0.62%, which is well below the 1.07% national average. In some cases, they can rival or even exceed state rates. These recommendations would result in a tax system that is not only broad-based but also “right-sized,” applying once and only once to each product the market produces. Use the physical address or the zip code, or if it is unknown, the Map Locator link can be used to find the location. The State of Arizona and Maricopa County does not tax food. Despite the slightly favorable impact on the overall rate, this lower rate represents an implicit acknowledgment by New Jersey officials that their 6.625 percent statewide rate is uncompetitive with neighboring Delaware, which has no sales tax. 2020 sales tax rates differ by state, but sales tax bases also impact how much revenue is collected and how it affects the economy. Johnson County’s special purpose local option sales tax (SPLOST) expired in September, taking the county’s combined sales tax down from 8 percent to 7 percent.[12]. There is no applicable county tax or special tax. 30, 2019, https://www.theadvocate.com/baton_rouge/news/article_c6e53086-5232-11e9-a35f-d313e11c123b.html. [8] Due to data limitations, this rate was not included in the Midyear 2019 update. [7] This new rate kicked in on April 1. For states that have a tax rate that is less than Arizona’s 5.6%, tax is collected by the state of Arizona at the time of purchase. This report provides a population-weighted average of local sales taxes as of January 1, 2020, to give a sense of the average local rate for each state. Click here to get more information. [9] Jason Morton, “Tuscaloosa sales tax increase coming Tuesday,” The Tuscaloosa News, Sept. 28, 2019, https://www.tuscaloosanews.com/news/20190928/tuscaloosa-sales-tax-increase-coming-tuesday. (c) The sales taxes in Hawaii, New Mexico, and South Dakota have broad bases that include many business-to-business services. These omissions result in some amount of inexactitude but overall do not have a palpable effect on resultant averages because proximate ZIP code areas which do have ZCTA population numbers capture the tax rate of those jurisdictions. 2020 rates included for use while preparing your income tax deduction. No state rates have changed since Utah increased the state-collected share of its sales tax from 5.95 percent to 6.1 percent in April 2019. Any state whose ranking improved did so only in comparison to those who enacted rate increases. Some of the Arizona tax type are: Consumers use, rental tax, sales tax, sellers use, lodgings tax and more. In addition to state-level sales taxes, consumers also face local sales taxes in 38 states. As a 501(c)(3) nonprofit, we depend on the generosity of individuals like you. [18], Tax experts generally recommend that sales taxes apply to all final retail sales of goods and services but not intermediate business-to-business transactions in the production chain. No changes Has been made in Arizona for county, city and/or special rates in current quarter of 2021 compared to 2020 Q4. [10] Iowa’s rank moved from 29th to 27th largely due to new 1 percent local sales taxes in the cities of Bondurant, Clive, Grimes, Johnston, and Urbandale.[11]. [21] Janelle Cammenga, Facts and Figures 2019: How Does Your State Compare? [6], Louisiana moved from third to second highest when East Baton Rouge increased its parish sales tax by half a percent. [17] For a list, see Jared Walczak, Scott Drenkard, and Joseph Bishop-Henchman, 2019 State Business Tax Climate Index, Tax Foundation, Sept. 26, 2018, https://taxfoundation.org/publications/state-business-tax-climate-index/. A stark example of this occurs in New England, where even though I-91 runs up the Vermont side of the Connecticut River, many more retail establishments choose to locate on the New Hampshire side to avoid sales taxes. The biggest driver of this change was a 0.125 percentage-point increase in Clark County, home to Las Vegas. (b) Three states levy mandatory, statewide, local add-on sales taxes at the state level: California (1%), Utah (1.25%), and Virginia (1%). Alaska: 0.000%. Five states do not have statewide sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon. When the sales tax is greater than 5.6%, you pay this percentage at the time of purchase. [6] Brittany Jacob, “Marion City Council unanimously passes sales tax increase and a property tax decrease,”  KFVS-TV, Sept. 23, 2019, https://www.kfvs12.com/2019/09/24/marion-city-council-unanimously-passes-sales-tax-increase-property-tax-decrease/. 1325 G St NW The lowest non-zero state-level sales tax is in Colorado, which has a rate of 2.9 percent. Some local jurisdictions do not impose a sales tax. Would you consider contributing to our work? Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. [20], Hawaii has the broadest sales tax in the United States, but it taxes many products multiple times and, by one estimate, ultimately taxes 105.29 percent of the state’s personal income. Sales Tax States shall in no case be held responsible for problems related to the use of data and calculators provided on this website. Arizona Estate Tax. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. Suite 950 This is done because a surprisingly large number of ZIP codes do not actually have any residents. Sales taxes are just one part of an overall tax structure and should be considered in context. It calculates Alaska’s sales tax at 1.76 percent, still well below the national average of … [12] “Sales Tax Rates – General,” Georgia Department of Revenue, January 2020, https://dor.georgia.gov/sales-tax-rates-general. [15] Arthur Woolf, “The Unintended Consequences of Public Policy Choices: The Connecticut River Valley Economy as a Case Study,” Northern Economic Consulting, Inc., November 2010, http://www.documentcloud.org/documents/603373-the-unintended-consequences-of-public-policy.html. The five states with the highest average local sales tax rates are Alabama (5.22 percent), Louisiana (5.07 percent), Colorado (4.75 percent), New York (4.52 percent), and Oklahoma (4.44 percent). With local taxes, the total sales tax rate is between 5.600% and 11.200%. Table 22, Tax Foundation, Mar. 2020 sales tax rates. Missouri allows all state and local sales … Janelle Cammenga is a Policy Analyst with the Tax Foundation’s Center for State Tax Policy. The Tax Foundation is the nation’s leading independent tax policy nonprofit. [21] This base is far wider than the national median, where the sales tax applies to 34.25 percent of personal income.[22]. Table 1 provides a full state-by-state listing of state and local sales tax rates. 0% – 7.85% A cap on the local sales/use tax applies on sales of any item of tangible personal property. Yes, at the City tax rate of 1.75%. State and local governments should be cautious about raising rates too high relative to their neighbors because doing so will yield less revenue than expected or, in extreme cases, revenue losses despite the higher tax rate. We represent this anomaly as a negative 0.03 percent statewide average local rate (adjusting for population as described in the methodology section below), and the combined rate reflects this subtraction. The Tax Foundation works hard to provide insightful tax policy analysis. We do our best to give you free sales tax calculators, pay for the websites, takes a lot of time to update the rates and gives you the best user experience possible. These partner may use Cookies in their advertising or data analytics strategy. No warranty is made as to the accuracy of information provided. States can vary greatly in this regard. 19, 2019, https://taxfoundation.org/facts-figures-2019/. California has the highest state-level sales tax rate, at 7.25 percent. One study shows that per capita sales in border counties in sales tax-free New Hampshire have tripled since the late 1950s, while per capita sales in border counties in Vermont have remained stagnant. Georgia saw a small decrease in its average local rates, but it continues to levy the 19th highest combined sales taxes. As of 2020, the highest income tax in Arizona was 4.50%, which was levied on income above $159,000 (single filing) or $318,000 (joint filing). The City of Scottsdale has not selected this option; therefore all food sold in the City of Scottsdale is subject to the City privilege (sales) tax.