Salem County, New Jersey is exempt from collecting the 7 percent statewide sales tax and instead collects a 3.5 percent local tax. The rate rose from 8.10 percent to 8.15 percent. The sales tax in Clark County, Nevada also increased, effective January 1, 2016. The revenue is allocated for road maintenance and repair and is slated to sunset in five years.
Voters in Colorado Springs, Colorado approved a 0.62 percent increase in the city’s sales tax effective January 1, 2016, increasing the city rate from 2.5 percent to 3.12 percent. This was the largest ranking change since the Jupdate. The large increase in Cook County’s rate resulted in Illinois having the seventh highest combined state and local rate, up from 10th highest on July 1, 2015. The 10.25 percent rate includes sales taxes assessed by the state, county, city, and local transit agency. This gives Chicago the distinction of imposing the highest sales tax of any large city in the United States. The sales tax rate in the city of Chicago increased to 10.25 percent as a result. The five states with the highest average local sales tax rates are Louisiana (5.01 percent), Alabama (4.93 percent), Colorado (4.54 percent), New York (4.48 percent), and Oklahoma (4.28 percent).Ĭook County, Illinois, home to Chicago, raised its county-level sales tax by 1 percent, from 1.75 percent to 2.75 percent, on January 1, 2016. No state increased their state-level sales tax with the beginning of 2016. These rates held constant from Jto January 1, 2016. Seven states follow with 4 percent rates: Alabama, Georgia, Hawaii, Louisiana, New York, South Dakota, and Wyoming. The lowest non-zero, state-level sales tax is in Colorado, which has a rate of 2.9 percent. Five states tie for the second-highest statewide rate at 7 percent: Indiana, Mississippi, New Jersey, Rhode Island, and Tennessee. State RatesĬalifornia has the highest state-level sales tax rate at 7.5 percent. The five states with the lowest average combined rates are Alaska (1.78 percent), Hawaii (4.35 percent), Wisconsin (5.41 percent), Wyoming (5.42 percent), and Maine (5.55 percent). The five states with the highest average combined state and local sales tax rates are Tennessee (9.46 percent), Arkansas (9.30 percent), Louisiana (9.01 percent), Alabama (8.97 percent), and Washington (8.90 percent). Of these, Alaska and Montana allow localities to charge local sales taxes. Combined Ratesįive states do not have statewide sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon.
#State income tax for 2016 phone number full#
Table 1 provides a full state-by-state listing of state and local sales tax rates. This report provides a population-weighted average of local sales taxes as of Januin an attempt to give a sense of the average local rate for each state. 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. In addition to state-level sales taxes, consumers also face local-level sales taxes in 38 states. While graduated income tax rates and brackets are complex and confusing to many taxpayers, sales taxes are easier to understand consumers can see their tax burden printed directly on their receipts.
Retail sales taxes are one of the more transparent ways to collect tax revenue.
Sales tax rate differentials can induce consumers to shop across borders or buy products online.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.The five states with the highest average combined state and local sales tax rates are Tennessee (9.46 percent), Arkansas (9.30 percent), Louisiana (9.0 percent), Alabama (8.97 percent), and Washington (8.90 percent).Local sales taxes are collected in 38 states.Forty-five states and the District of Columbia collect statewide sales taxes.
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