For the 3rd year in a row, Louisiana leads the country in….sales tax

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For the third year in a row, Louisiana has the highest combined sales tax rate in the country, according to new data from the Tax Foundation. The ranking is driven not just by the state rate, but by layers of local taxes that push the total well above 10% in many parts of the Baton Rouge area.

The state’s base sales tax rate is 5%, but when parish, city, and special taxing district rates are added, Louisiana’s average combined rate rises to about 10.1%, the highest nationwide. In some parts of the state, consumers are paying 11%, 12%, or even more on everyday purchases.

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Ranked behind Louisiana is Tenneesee with an average sales tax rate of 9.61%. The biggest difference between the two states, Tennessee does not have an income tax.

Washington ranks third with a sales tax rate of 9.51%. Neighboring Arkansas ranks fourth with a 9.46% tax rate, and Alabama ranks fifth with a 9.46% tax rate. Texas’ tax rate, 8.20%, ranks 14th while Mississippi’s 7.06% tax rate ranks 23rd in the country.

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