Top 10 States With Most Sales Tax

Per The Tax Foundation, as of July 1, 2011 the top 10 states with highest combined sales tax rates are:

1. Tennessee
2. Arizona
3. Louisiana
4. Washington
5. Oklahoma
6. Alabama
7. Arkansas
8. New York
9. Illinois
10. Kansas

Sales tax rates vary across states, but factor in local rates and the variation becomes apparent. Indeed, just because a state has a high statewide rate doesn't me

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an it's total sales tax rate is one of the country's highest.

California, for example, has the highest state sales tax rate and a relatively low local average tax rate, keeping it out of the top ten highest overall sales tax rates. Conversely, Louisiana, which has the second lowest statewide tax rate in the country, has the third-highest overall sales tax because of a huge average local rate.