VAT News

 U.S. Sales Taxes By State 2020

 U.S. Sales Taxes By State 2020

Although US sales tax does not fall into the arena of VAT registration and compliance, we still want all our clients to know what they should be charging if they are retailing in U.S states. Below are the 2020 US sales and SUT tax rates for your guidance.

The US states with the highest sales tax rates are California (7.250%), Mississippi (7.00%), Tennessee (7.00%), Minnesota (6.875%) and Nevada (6.85%).

Alaska, Montana, New Hampshire and Oregon do not impose on sales taxes in their states and Alabama and New York come in second with the lowest sales tax rates at 4% each. 

State

State Sales Tax Rate

Range of Local SUT Rates

Alabama

4.00%

0% – 9.0% 

Alaska

0.00%

0% – 7.85% 

Arizona

5.60%

0 – 7.30% 

Arkansas

6.50%

0% – 5.50% 

California

7.250% 

0% – 3.25%

Colorado

2.900% 

0% – 8.3% 

Connecticut

6.350% 

0% -1% 

Delaware

0.000% 

0%

District of Columbia

6.00%

0%

Florida

6.000% 

0% – 2.5% 

Georgia

4.000% 

1% – 5%

Hawaii

4.000% 

0% – 0.5% 

Idaho

6.00%

0% – 3% 

Illinois

6.250% 

0% – 4.75% 

Indiana

7.00%

0%

Iowa

6.000% 

0% – 2% 

Kansas

6.500% 

0% – 5% 

Kentucky

6.00%

0%

Louisiana

4.450% 

0% – 7.75% 

Maine

5.50% 

0%

Maryland

6.00%

0%

Massachusetts

6.25%

0%

Michigan

6.00% 

0%

Minnesota

6.875% 

0% – 2% 

Mississippi

7.000% 

0% – 1% 

Missouri

4.23%

0.5% – 7.454%

Montana

0.00%

0%

Nebraska

5.50%

0% – 2.5% 

Nevada

6.85% 

0% – 1.525% 

New Hampshire

0.00%

0%

New Jersey

6.63%

0%

New Mexico

5.13%

0.125% – 7.75%

New York

4.00%

0% – 5% 

North Carolina

4.750% 

2% – 3%

North Dakota

5.000% 

0% – 3% 

Ohio

5.75%

0 – 2.25% 

Oklahoma

4.50%

0% – 7% 

Oregon

0.00%

0%

Pennsylvania

6.00%

0% – 2% 

Puerto Rico

11.500% 

0%

Rhode Island

7.000%

0%

South Carolina

6.000% 

0% – 3% 

South Dakota

4.500% 

0% – 8% 

Tennessee

7.000% 

1.5% – 2.75% 

Texas

6.250%

0% – 2% (1.75% local rate for remote sellers)

Utah

4.850% 

1% – 7.5%

Vermont

6.000% 

0% – 1% 

Virginia

4.300% 

1% – 2.7%

Washington

6.50%

0.5% – 4.0%

West Virginia

6.00%

0% – 1% 

Wisconsin

5.00%

0% – 1.75% 

Wyoming

4.000% 

0% – 4% 


Conclusion

It’s still worth noting these US sales tax rates if you are a foreign business who travels to the USA for work purposes. If you are a US-based business, we’d like to ask you if you’ve ever considered the VAT compliance risks your business may be facing in Europe? If not, you can get in touch by completing one of our contact forms. 

Related articles

HMRC: No VAT on e-Publications for UK Citizens as of 1 May 2020

HMRC has scrapped VAT completely off e-books and e-publications from 20% down to 0%. In an effort to make reading more accessible for the UK public while in self-isolation due to the Coronavirus, HMRC fast-tracked the motion and implemented it seven months ahead of schedule. 

Read more
COVID-19 VAT tips for businesses

These COVID-19 VAT tips for businesses will help companies around the world boost liquidity in times of economic challenges. Learn how to harness VAT refunds and compliance.

Read more
COVID-19 VAT Cashflow Tips (Part Two)

COVID-19 is affecting business in ways no one thought possible. In order to free yourself from the burden of cashflow worry, we’re trying to do our bit to advice you on ways you can inject income into your bottom line.

Read more