Tennessee, California tops in sales tax

California’s statewide sales tax, 8.25 percent, is the highest in the country, with the state’s residents paying on average just over 9 percent in sales tax. But according to the report from the nonpartisan Tax Foundation, Tennessee residents on average have a higher sales tax burden, 9.44 percent, because of the impact of local sales taxes.

The report says that local sales taxes, which are allowed in 33 states, make it harder for consumers to know what they are being charged and makes the sales tax process less transparent.

Arizona, Louisiana and Washington round out the top five when it comes to sales tax. On the other end of the spectrum, Alaska, Delaware, Montana, New Hampshire and Oregon do not have a statewide sales tax, though Alaska does allow localities to charge a local one. Hawaii, Maine, Virginia, South Dakota and Wyoming have the lowest combined rates among states that have a statewide sales tax.