Table 7.25

State Sales Tax Rates and Vendor Discounts (As of January 1, 2022)


FIPS State or other
jurisdiction
State sales tax rate
(percent)
Rank Vendor discount
(percent)
Max/Min
01Alabama4.0%415.0%-2.0% (a)$400/month (max)
02AlaskaN/AN/AN/AN/A
04Arizona5.6281.0 (b)$10,000/year (max)
05Arkansas6.592.0$1,000/month (max)
06California7.251None
08Colorado2.9464.0 (c)
09Connecticut6.3512None
10DelawareN/AN/AN/AN/A
12Florida6.0162.5$30/report (max)
13Georgia4.0413.0-0.5 (a)
15Hawaii4.041None
16Idaho6.016None (d)
17Illinois6.25131.75$5/year (min)
18Indiana (e)7.020.73 (e)
19Iowa6.016None
20Kansas6.59None
21Kentucky6.0161.75-1.5 (a)$50/month (max)
22Louisiana4.45360.84%$1,500/month (max)
23Maine5.529None (d)
24Maryland6.0161.2-0.90 (a)$500/return (max)
25Massachusetts6.2513None
26Michigan6.0160.5 (f)$6/month (min), $15,000/month (max)
27Minnesota6.8756None
28Mississippi7.022.0$50/month (max)
29Missouri4.225392.0
30MontanaN/AN/AN/AN/A
31Nebraska5.5292.5$75/month (max)
32Nevada6.8560.25
33New Hampshire (g)N/AN/AN/AN/A
34New Jersey6.6258None
35New Mexico5.12531None
36New York4.0415.0$200/quarter (max) small sellers only
37North Carolina4.7535None
38North Dakota5.0321.5$110/month (max)
39Ohio5.75270.75
40Oklahoma4.536None
41OregonN/AN/AN/AN/A
42Pennsylvania6.0161.0$25/month (min)
44Rhode Island7.02None
45South Carolina6.0163.0-2.0 (a)$10,000/year (max)
46South Dakota4.5361.5$70/month (max)
47Tennessee7.02None
48Texas6.25130.5 (h)
49Utah (i)4.85341.31
50Vermont6.016None
51Virginia (i)4.3391.1 - 0.56 (j)
53Washington6.59None
54West Virginia6.016None
55Wisconsin5.0320.5$10/period (min), $1,000 (max)
56Wyoming4.0411.95-1.0 (a)$500/month (max)
11Dist. of Columbia6.016None
__U. S. Median6.027 states allow vendor discounts

Source:

Compiled by FTA from various sources. January 2022.

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)

Local option sales tax discount varies from 0% to 3.33%.

(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 8.5% tax on meals and rooms, with a vendor discount of 3%.

(h)

An additional discount of 1.25% applies for early payment.

(i)

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.

(j)

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.