STATE SALES TAX RATES AND VENDOR DISCOUNTS
(January 1, 2023)
| STATE | STATE SALES TAX RATE | RANK | VENDOR DISCOUNT | MAX/MIN |
|---|---|---|---|---|
| ALABAMA | 4.0% | 41 | 5.0%-2.0% (1) | $400/month (max) |
| ALASKA | ----------------------- | -----------N/A---------- | ----------------------- | |
| ARIZONA | 5.6% | 28 | 1.0% (9) | $10,000/year (max) |
| ARKANSAS | 6.5% | 9 | 2.0% | $1,000/month (max) |
| CALIFORNIA | 7.25% | 1 | None | |
| COLORADO | 2.9% | 46 | 4.0% (4) | |
| CONNECTICUT | 6.35% | 12 | None | |
| DELAWARE | ----------------------- | -----------N/A--------- | ------------------------ | |
| DIST. OF COLUMBIA | 6.0% | 16 | None | |
| FLORIDA | 6.0% | 16 | 2.5% | $30/report (max) |
| GEORGIA | 4.0% | 41 | 3.0%-0.5% (1) | |
| HAWAII | 4.0% | 41 | None | |
| IDAHO | 6.0% | 16 | None (5) | |
| ILLINOIS | 6.25% | 13 | 1.75% | $5/year (min) |
| INDIANA (2) | 7.0% | 2 | 0.73% (2) | |
| IOWA | 6.0% | 16 | None | |
| KANSAS | 6.50% | 9 | None | |
| KENTUCKY | 6.0% | 16 | 1.75%-1.5% (1) | $50/month (max) |
| LOUISIANA | 4.45% | 36 | 0.84% | $1,500/month (max) |
| MAINE | 5.5% | 29 | None (5) | |
| MARYLAND | 6.0% | 16 | 1.2%-0.90% (1) | $500/return (max) |
| MASSACHUSETTS | 6.25% | 13 | None | |
| MICHIGAN | 6.0% | 16 | 0.5% (6) | $6/monh (min), $15,000/month (max) |
| MINNESOTA | 6.875% | 6 | None | |
| MISSISSIPPI | 7.0% | 2 | 2.0% | $50/month (max) |
| MISSOURI | 4.225% | 39 | None | |
| MONTANA | ------------------------ | ------------N/A-------- | ------------------------ | |
| NEBRASKA | 5.5% | 29 | 2.5% | $75/month (max) |
| NEVADA | 6.85% | 6 | 0.25% | |
| NEW HAMPSHIRE (10) | ----------------------- | ------------N/A-------- | ------------------------ | |
| NEW JERSEY | 6.625% | 8 | None | |
| NEW MEXICO (11) | 5.0% | 31 | None | |
| NEW YORK | 4.0% | 41 | 5.0% | $200/quarter (max) small sellers only |
| NORTH CAROLINA | 4.75% | 35 | None | |
| NORTH DAKOTA | 5.0% | 31 | 1.5% | $110/month (max) |
| OHIO | 5.75% | 27 | 0.75% | |
| OKLAHOMA | 4.5% | 36 | None | |
| OREGON | ----------------------- | ------------N/A-------- | ------------------------ | |
| PENNSYLVANIA | 6.0% | 16 | 1.0% | $25/month (min) |
| RHODE ISLAND | 7.0% | 2 | None | |
| SOUTH CAROLINA | 6.0% | 16 | 3.0%-2.0% (1) | $10,000/year (max) |
| SOUTH DAKOTA | 4.5% | 36 | 1.5% | $70/month (max) |
| TENNESSEE | 7.0% | 2 | 2.0%-1.15% (12) | $25/period (max) |
| TEXAS | 6.25% | 13 | 0.5% (7) | |
| UTAH (3) | 4.85% | 34 | 1.31% | |
| VERMONT | 6.0% | 16 | None (5) | |
| VIRGINIA (3) | 4.3% | 39 | 1.1%-0.56% (8) | |
| WASHINGTON | 6.5% | 9 | None | |
| WEST VIRGINIA | 6.0% | 16 | None | |
| WISCONSIN | 5.0% | 31 | 0.5% | $10/period (min), $1,000 (max) |
| WYOMING | 4.0% | 41 | 1.95%-1.0% (1) | $500/month (max) |
| U. S. MEDIAN | 6.0% | 27 states allow vendor discounts |
Source: Compiled by FTA from various sources.
(1) In some states, the vendors’ discount varies by the amount paid. In AL and SC, the larger discounts apply to the first $100. In GA, the larger discount applies to the first $3,000. In KY, the larger discounts apply to the first $1,000, while MD applies the larger discount to annual collections of $6,000. In WY, the larger discount applies to the first $6,250. The lower discounts apply to the remaining collections above these amounts.
(2) Utilities are not permitted to take discount. Collection allowances are 0.73% if total sales tax collected is less than $60,000; 0.53% if total taxes is between $60,000 and $600,000; 0.26% if total sales tax collected is more than $600,000.
(3) Rate does not include a statewide local rate of 1.0% in VA and 1.25% in UT. In UT, a discount of 1% is applicable to local taxes.
(4) Colorado local option sales tax discount varies from 0% to 3.33%. For Calendar year 2023, a discount of 5.3% is allowed for taxpayers with $100,000 in sales.
(5) Vendors are allowed to keep any excess collections prescribed under the bracket system.
(6) Vendor discount only applies to the first 4.0% of the tax. A 0.75% discount if paid by the 12th of the month.
(7) An additional discount of 1.25% applies for early payment.
(8) Discount varies; 1.1% (1.6% for food) of the first $62,500, 0.84% (1.2%) of the amount to $208,000, and 0.56% (0.8%) of the remainder. Applies to the state tax only. No discount allowed on electronically file returns.
(9) In Arizona, vendor discount rate is 1.2% for electronic filers with a $12,000 annual maximum.
(10) New Hampshire imposes a 9% tax on meals and rooms, with a vendor discount of 3%.
(11) New Mexico sales (GRT) tax rate is scheduled to decrease to 4.875% after 7/1/23.
(12) Tennessee vendor discounts effective 7/1/22 to 6/30/23. Higher rate applies to first $2,500.
