Tennessee has a reputation as a tax-friendly state - except at the check-out line.
The Volunteer State has the highest average combined sales tax rate in the country at 9.45 percent, according to a new report from the Tax Foundation.
The five states with the highest average combined rates are:
- Tennessee (9.45 percent)
- Arkansas (9.19 percent)
- Louisiana (8.89 percent)
- Washington (8.88 percent)
- Oklahoma (8.72 percent)
Separately, Tennessee's state sales tax rate stands at 7 percent, which ranks as one of the top five rates in the country.
Tennessee's local tax rates average about 2.45 percent, the study found. The local maximum rate that can be charged by a municipality is 2.75 percent.
How does Tennessee compare to a the state with lowest tax rate? Well, Alaska has a local combined sales tax rate of 1.69 percent. As an example, an item that costs $150 in Tennessee would ring up an additional $14.18 in sales tax; in Alaska, the sales tax would be $2.54.