And the beat goes on. According to a new study released earlier this week, Louisiana has the highest average sales tax of any state in the U.S.

The non-profit Tax Foundation, which has been tracking tax rates since 1937, revealed that Louisianians pay an average combined sales tax of 9.55%.

Following the Bayou State with the highest average combined state and local sales tax rates are Tennessee (9.548%), Arkansas (9.46%), Alabama (9.25%), and Oklahoma (8.98%).

The five states with the lowest average combined rates are Alaska (1.76%), Hawaii (4.44%), Wyoming (5.36%), Wisconsin (5.43%), and Maine (5.50%).

Louisiana has a statewide sales tax of 4.45%. Add that to the average local sales tax rate of 5.10 and you get the blended average of 9.55%.

JCVdude via YouTube
JCVdude via YouTube

Municipal governments in Louisiana are allowed to collect local sales taxes, so there is a variance in the total sales tax rate throughout cities in the state, parishes, and special districts. These rates are weighted by population to come up with the average local tax rate.

According to the study mentioned above, there are four cities in Louisiana that do not levy a local sales tax -- Creole, Cameron, Grand Chenier, and Hackberry.

On the flip side, the highest sales tax in the state is 12.95% and that distinction is shared by Monroe and Sterlington in north Louisiana.

Katie Harp via
Katie Harp via

There wasn't much change in these rankings from a year ago as no state rates have changed since New Mexico reduced its sales tax rate from 5.125 to 5% in July 2022.

Some other interesting notes regarding the study include:

  • 45 states and the District of Columbia collect statewide sales taxes.
  • Local sales taxes are collected in 38 states. In some cases, they can rival or even exceed state rates.
  • 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.
  • Sales tax rate differentials can induce consumers to shop across borders or buy products online.

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