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There are some extreme cases where sales taxes are so big, that shoppers decide to take off to another state and do their shopping there, especially when they want to make a considerable purchase.
According to several publications, these types of situations happen quite often in certain areas of Massachusetts that are not that far from New Hampshire, which is a tax-free state.
The winner of the state that has the biggest sales taxes is California, which has a rate of 7.25%. In order to make things more clear, we are going to rank them on a top, from the highest to the lowest:
- California – 7.25%
- Mississippi, Tennessee, Indiana, and Rhode Island – 7%
- Minnesota – 6.875%
- Nevada – 6.85%
- New Jersey – 6.625%
- Kansas, Washington, and Arkansas – 6.5%
What kinds of purchases require sales taxes?
The majority of the states that have low tax sales usually exclude food products and other types of daily necessities, for example, clothing items and prescription medicine.
On the other hand, not all states function under the same rule. For example, there are states that have bigger taxes for particular products, such as gasoline, tobacco, and alcoholic beverages.
Starting since 2020, if you buy a pack of 20 cigarettes in New Hampshire, you will have to pay an extra $1.78. If you want a pack that has 25 cigarettes, your sale taxes will be up to $2.23 per package.
If you are one of Wyoming’s residents and you like beer, we can say that you are lucky. That is because this state has the lowest sales tax on beer, 0.02 per gallon as of 2022, to be exact.
