Table 7.25

State Sales Tax Rates and Vendor Discounts (As of January 1, 2023)

Available versions: 2023 (showing) 2022

FIPS	State or other jurisdiction	State sales tax rate (percent)	Rank	Vendor discount (percent)	Max/Min
01	Alabama	4.00%	41	5.0%-2.0% (a)	$400/month (max)
02	Alaska	N.A.	N.A.	N.A.	N.A.
04	Arizona	5.6	28	1 (b)	$10,000/year (max)
05	Arkansas	6.5	9	2	$1,000/month (max)
06	California	7.25	1	None	n/a
08	Colorado	2.9	46	4.0 (c)	n/a
09	Connecticut	6.35	12	None	n/a
10	Delaware	N.A.	N.A.	N.A.	N.A.
12	Florida	6	16	2.5	$30/report (max)
13	Georgia	4	41	3.0-0.5 (a)	n/a
15	Hawaii	4	41	None	n/a
16	Idaho	6	16	None (d)	n/a
17	Illinois	6.25	13	1.75	$5/year (min)
18	Indiana	7	2	0.73 (e)	n/a
19	Iowa	6	16	None	n/a
20	Kansas	6.5	9	None	n/a
21	Kentucky	6	16	1.75-1.5 (a)	$50/month (max)
22	Louisiana	4.45	36	0.84	$1,500/month (max)
23	Maine	5.5	29	None (d)	n/a
24	Maryland	6	16	1.2-0.90 (a)	$500/return (max)
25	Massachusetts	6.25	13	None	n/a
26	Michigan	6	16	0.5 (f)	$6/month (min), $15,000/month (max)
27	Minnesota	6.875	6	None	n/a
28	Mississippi	7	2	2	$50/month (max)
29	Missouri	4.225	39	None	n/a
30	Montana	N.A.	N.A.	N.A.	N.A.
31	Nebraska	5.5	29	2.5	$75/month (max)
32	Nevada	6.85	6	0.25	n/a
33	New Hampshire (g)	N.A.	N.A.	N.A.	N.A.
34	New Jersey	6.625	8	None	n/a
35	New Mexico (h)	5.125	31	None	n/a
36	New York	4	41	5	$200/quarter (max), small sellers only
37	North Carolina	4.75	35	None	n/a
38	North Dakota	5	32	1.5	$110/month (max)
39	Ohio	5.75	27	0.75	n/a
40	Oklahoma	4.5	36	None	n/a
41	Oregon	N.A.	N.A.	N.A.	N.A.
42	Pennsylvania	6	16	1	$25/month (min)
__	Rhode island	7	2	None	n/a
45	South Carolina	6	16	3.0-2.0 (a)	$10,000/year (max)
46	South Dakota	4.5	36	1.5	$70/month (max)
47	Tennessee	7	2	2.0-1.15 (i)	$25/period (max)
48	Texas	6.25	13	0.5 (j)	n/a
49	Utah (k)	4.85	34	1.31	n/a
50	Vermont	6	16	None (d)	n/a
51	Virginia (k)	4.3	39	1.1 - 0.56 (l)	n/a
53	Washington	6.5	9	None	n/a
54	West Virginia	6	16	None	n/a
55	Wisconsin	5	32	0.5	$10/period (min), $1,000 (max)
56	Wyoming	4	41	1.95-1.0 (a)	$500/month (max)
11	Dist. of Columbia	6	16	None	n/a

Source:

Compiled by FTA from various sources, January 2023.

Key:

N/A

—

Not applicable.

Footnotes:

(a)	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.
(b)	In Arizona, vendor discount rate is 1.2% for electronic filers with a $12,000 annual maximum.
(c)	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
(d)	Vendors are allowed to keep any excess collections prescribed under the bracket system
(e)	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
(f)	Vendor discount only applies to the first 4.0% of the tax. A 0.75% discount if paid by the 12th of the month
(g)	New Hampshire imposes a 9% tax on meals and rooms, with a vendor discount of 3%.
(h)	New Mexico sales (GRT) tax rate is scheduled to decrease to 4.875% after 7/1/23
(i)	Tennessee vendor discounts effective 7/1/22 to 6/30/23. Higher rate applies to first $2,500
(j)	An additional discount of 1.25% applies for early payment
(k)	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
(l)	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.