Posted 2/13/23

Tennessee has the second-highest sales tax rate in the country, according to a new report.

Tennessee has an average of 9.548% as a local and state tax rate, falling just below Louisiana’s 9.550% for the top spot.

Forty-five states and the District of Columbia have sales taxes. Alaska, Delaware, Montana, New Hampshire and Oregon do not.

Tennessee is one of nine states without a state income tax, along with Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Washington and Wyoming.

For the first five months of the fiscal year, Tennessee collected $1.1 billion in sales taxes, which is $598.5 million more than the budgeted estimate.