US States With the Lowest Sales Tax Rates

Ranked by state-level sales tax rate only (ignoring local add-ons). The lowest-rate states can still have higher effective rates once local and special-district taxes layer on top.

Customers love low headline rates, but what they actually pay depends on the combined state + local rate at their delivery address. These states have the lowest statutory state rates — but several have high local add-ons that narrow the gap.

• Colorado$100,000 · 2.90%
  • State rate 2.90%; combined with average local rate, buyers pay ~7.89%.
• Alabama$250,000 · 4.00%
  • State rate 4.00%; combined with average local rate, buyers pay ~9.46%.
• Georgia$100,000 · 4.00%
  • State rate 4.00%; combined with average local rate, buyers pay ~7.49%.
• Hawaii$100,000 · 4.00%
  • State rate 4.00%; combined with average local rate, buyers pay ~4.50%.
• New York$500,000 · 4.00%
  • State rate 4.00%; combined with average local rate, buyers pay ~8.54%.
• Wyoming$100,000 · 4.00%
  • State rate 4.00%; combined with average local rate, buyers pay ~5.56%.
• South Dakota$100,000 · 4.20%
  • State rate 4.20%; combined with average local rate, buyers pay ~6.10%.
• Missouri$100,000 · 4.23%
  • State rate 4.23%; combined with average local rate, buyers pay ~8.45%.
• Oklahoma$100,000 · 4.50%
  • State rate 4.50%; combined with average local rate, buyers pay ~9.06%.

Sellers don't care about the statutory rate — they care about the rate they collect, which is determined by the buyer's ship-to address. A 4% state rate plus 4% local rate is functionally the same as an 8% flat state rate.