California’s state sales tax rate of 7.25% is the highest in the country in 2026. That figure includes a 1.25% local portion that applies statewide. Indiana, Mississippi, Rhode Island and Tennessee follow at 7%. Five states charge no state sales tax. Nine apply a rate to most groceries, from 1% in Virginia to 6% in Idaho. Local jurisdictions add their own rates in most states. MoveMath models only the state rate, which the relocation budget planner applies automatically for the metro you pick.
State sales tax rates in 2026
Rates are from state revenue departments, as compiled in MoveMath’s sales-tax data and checked October 13, 2026. These are state rates only; local add-ons are not included.
Highest state rates:
| State | General rate | Groceries |
|---|---|---|
| California | 7.25% | Exempt |
| Indiana | 7.00% | Exempt |
| Mississippi | 7.00% | 5.00% |
| Rhode Island | 7.00% | Exempt |
| Tennessee | 7.00% | 4.00% |
| Minnesota | 6.875% | Exempt |
| Nevada | 6.85% | Exempt |
| New Jersey | 6.625% | Exempt |
| Arkansas | 6.50% | Exempt (from Jan. 1, 2026) |
| Kansas | 6.50% | Exempt (from Jan. 1, 2025) |
| Washington | 6.50% | Exempt |
No state sales tax: Alaska (local taxes in some areas), Delaware, Montana, New Hampshire, Oregon.
Lowest rates among states that have one: Colorado 2.9%, then Alabama, Georgia, Hawaii, New York and Wyoming at 4%.
States that tax groceries
| State | Grocery rate | Note |
|---|---|---|
| Idaho | 6.00% | Full rate; Idaho’s income-tax Food Tax Credit is $155 per person (Idaho Tax Commission) |
| Mississippi | 5.00% | Cut from 7% on July 1, 2025 (Mississippi DOR) |
| South Dakota | 4.20% | Full rate; 4.5% scheduled from July 1, 2027 |
| Hawaii | 4.00% | General excise tax on food sales |
| Tennessee | 4.00% | Reduced food rate (7% general) |
| Utah | 3.00% | Reduced food rate |
| Alabama | 2.00% | Since Sept. 1, 2025 (Alabama DOR) |
| Missouri | 1.225% | Reduced food rate |
| Virginia | 1.00% | State share is 0%; the 1% local-option tax applies statewide |
Tennessee pairs no tax on wages with a 7% general rate and 4% on food, so “no income tax” doesn’t mean no state tax.
How local rates change the picture
Cities, counties and special districts add their own sales taxes in most states, and rates can differ within one metro. Texas is a clear example: local jurisdictions can add up to 2% to the 6.25% state rate, for a combined maximum of 8.25% (Texas Comptroller). Treat the state rate as a floor and look up the combined rate for your address on the state revenue department’s site.
How MoveMath applies sales tax to your budget
The engine applies the state general rate to your “other goods” spending, which is a $500-a-month US-average baseline scaled by the metro’s BEA RPP goods index. It applies the state grocery rate to the household’s USDA food-plan cost.
Example: a single $75,000 earner in Nashville on the USDA Moderate-Cost plan:
- Other goods: $500 × 0.962 (Nashville RPP goods 96.2) = $481 a month; × 7% = $33.69
- Groceries: $424 a month (USDA Moderate-Cost × RPP) × 4% = $16.96
- State sales tax: $50.65 a month, $608 a year
This is an estimate. Not everything in “other goods” is taxable everywhere; clothing, medicine and other items have state-specific exemptions.
Groceries: where the rate hits families
Food is a large, unavoidable part of a family budget, so a grocery tax adds up. For a family of four (two adults, a preschooler and a school-age child) on the Moderate-Cost plan, MoveMath prices food at about $1,234 a month in Boise. Idaho’s 6% adds about $74 a month, or $888 a year. The same family pays an estimated $740 a year in Mississippi (5%), $593 in Tennessee (4%) and $297 in Alabama (2%).
Which matters more: income tax or sales tax?
State taxes for a single $75,000 earner in MoveMath’s 2026 budgets, with sales tax on RPP-adjusted goods and groceries:
| Metro | State income tax | Local income tax | State sales tax (est.) | Total |
|---|---|---|---|---|
| Houston, TX | $0 | $0 | $377 | $377 |
| Nashville, TN | $0 | $0 | $608 | $608 |
| Boise, ID | $2,867 | $0 | $651 | $3,518 |
| Jackson, MS | $2,268 | $0 | $658 | $2,926 |
| Portland, OR | $5,059 | $0 | $0 | $5,059 |
| New York City, NY | $3,453 | $2,472 | $265 | $6,190 |
At this income, income tax dominates for wage earners. Sales tax matters more for retirees and lower earners, whose income tax is small but who still buy taxable goods and food.
State pages: Tennessee, Texas, Oregon, Idaho. Compare two metros in the cost-of-living calculator.