Politics & Government
Tennesseans Now Pay More Sales Tax Than Anyone Else
With a slight change in Louisiana's tax law, Tennessee now has the highest average combined state and local sales tax, a new study finds.
NASHVILLE, TN -- Tennesseans now have the highest average sales-tax burden in America after a slight change in Louisiana's tax law dipped that state's average rate.
A mid-year study by the conservative-leaning but nonpartisan Tax Foundation found the average combined state and local sales tax rate in Tennessee is 9.46 cents on the dollar, ahead of Louisiana by one one-hundredth of a cent.
Louisiana lowered its state rate slightly July 1 after the expiration of the so-called "clean penny" tax implemented during a 2016 budget crunch.
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Five states - Alaska, Delaware, Montana, New Hampshire and Oregon - do not have a state sales tax, though Alaska does permit local government to implement a sales tax and Montana charges a version of the sales tax in resort areas.
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