A simplified overview of state sales tax rates and economic environments.
| State | Base Sales Tax | Climate | Why? (Notes) |
|---|---|---|---|
| Alabama | 4.00% | Neutral | Average tax burden, standard nexus rules. |
| Alaska | 0.00% | Favorable | No state sales tax, no state income tax. Local taxes apply. |
| Arizona | 5.60% | Neutral | Standard nexus, moderate tax rates. |
| Arkansas | 6.50% | Neutral | Average tax climate. |
| California | 7.25% | Unfavorable | High sales tax, high income tax, strict business regulations. |
| Colorado | 2.90% | Neutral | Low state tax, but complex home-rule local jurisdictions. |
| Connecticut | 6.35% | Unfavorable | High overall tax burden. |
| Delaware | 0.00% | Favorable | No sales tax, highly favorable corporate laws. |
| Florida | 6.00% | Favorable | No state personal income tax, large market. |
| Georgia | 4.00% | Neutral | Average tax environment. |
| Hawaii | 4.00% | Unfavorable | General Excise Tax (GET) applies to almost all transactions. |
| Idaho | 6.00% | Neutral | Standard economic nexus threshold. |
| Illinois | 6.25% | Unfavorable | High overall tax burden and complex local taxes. |
| Indiana | 7.00% | Neutral | Higher sales tax, but relatively simple administration. |
| Iowa | 6.00% | Neutral | Average tax climate. |
| Kansas | 6.50% | Neutral | No economic nexus threshold (first dollar taxation). |
| Kentucky | 6.00% | Neutral | Standard tax environment. |
| Louisiana | 4.45% | Unfavorable | Notoriously complex, parish-by-parish sales tax administration. |
| Maine | 5.50% | Neutral | Average tax burden. |
| Maryland | 6.00% | Neutral | Standard nexus, moderate overall taxes. |
| Massachusetts | 6.25% | Unfavorable | High overall tax burden, aggressive nexus enforcement. |
| Michigan | 6.00% | Neutral | Straightforward flat sales tax rate. |
| Minnesota | 6.88% | Neutral | Higher tax rates, but standard nexus rules. |
| Mississippi | 7.00% | Neutral | High state sales tax, low local taxes. |
| Missouri | 4.23% | Neutral | Standard business climate. |
| Montana | 0.00% | Favorable | No state sales tax, great for avoiding nexus issues. |
| Nebraska | 5.50% | Neutral | Average tax environment. |
| Nevada | 6.85% | Favorable | No state income tax, very business-friendly. |
| New Hampshire | 0.00% | Favorable | No sales tax, highly favorable for online sellers. |
| New Jersey | 6.63% | Unfavorable | High overall corporate and personal tax burden. |
| New Mexico | 4.88% | Neutral | Gross Receipts Tax instead of standard sales tax. |
| New York | 4.00% | Unfavorable | Complex tax codes, high overall tax burden, strict enforcement. |
| North Carolina | 4.75% | Neutral | Standard tax climate. |
| North Dakota | 5.00% | Neutral | Average tax burden. |
| Ohio | 5.75% | Neutral | Standard nexus, Commercial Activity Tax (CAT) applies. |
| Oklahoma | 4.50% | Neutral | Standard tax environment. |
| Oregon | 0.00% | Favorable | No state sales tax, easing compliance for e-commerce. |
| Pennsylvania | 6.00% | Neutral | Standard overall tax environment. |
| Rhode Island | 7.00% | Neutral | Higher sales tax rate, small market. |
| South Carolina | 6.00% | Neutral | Standard business climate. |
| South Dakota | 4.20% | Favorable | No state income tax, low cost of doing business. |
| Tennessee | 7.00% | Favorable | No personal income tax, despite high sales tax. |
| Texas | 6.25% | Favorable | No personal income tax, large economy, business-friendly. |
| Utah | 6.10% | Neutral | Standard tax environment. |
| Vermont | 6.00% | Neutral | Average tax climate. |
| Virginia | 5.30% | Neutral | Standard business climate. |
| Washington | 6.50% | Favorable | No personal income tax, though Business & Occupation tax applies. |
| West Virginia | 6.00% | Neutral | Average tax burden. |
| Wisconsin | 5.00% | Neutral | Standard overall tax environment. |
| Wyoming | 4.00% | Favorable | No corporate or personal income tax, top business climate. |