Report: Tennessee Has Highest Sales Tax, Alaska the Lowest

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Tennessee has the highest combined state and local sales tax rate in the country at 9.44 percent and Alaska the lowest at 1.69 percent, according to a new report from the Tax Foundation, a conservative think tank.

The combined sales tax rates were calculated by combining the state sales tax rate with an average of local sales taxes, adjusted for population, the research organization said in its report released Wednesday.

Alaska has no statewide sales tax, along with four other states (Delaware, Montana, New Hampshire and Oregon), but allows its localities to charge sales taxes. High local rates in municipalities like Juneau and Kodiak (5 percent and 6 percent, respectively) give most Alaskans some sales tax to pay.