What’s New in US Sales Tax? Sales Tax by State 2025

Sales tax rates across the United States can vary significantly, reflecting each state's fiscal policies and economic strategies. This guide provides an updated breakdown of sales tax rates by state, along with key changes impacting businesses in 2025. 

Overview of state sales tax rates

State sales tax rates range from 0% to over 7%, with local jurisdictions often imposing additional taxes that can substantially increase the total sales tax burden. For instance, while Colorado's state sales tax rate is 2.9%, local taxes can raise the combined rate to as high as 11.2%. Conversely, some states, such as Delaware, Montana, New Hampshire, and Oregon, do not impose a statewide sales tax.

Recent sales tax changes 

As of January 1, 2025, several notable changes to US sales tax policies have been implemented across various states: 

State sales tax rate adjustments:

• Louisiana: The state sales tax rate has increased from 4.45% to 5%.
• Kansas: The state sales tax rate on unprepared food has been reduced from 2% to 0%. However, local sales taxes may still apply to these items.

Changes in the taxability of products:

• Louisiana: Sales and use tax now applies to digital products, including audiovisual works, audio works, books, codes, applications and games, and periodicals and discussion forums.
• Nevada: Diapers for both adults and children are now exempt from sales and use tax.

Remote seller tax modifications:

• Alaska: The state has eliminated its 200-transaction economic nexus threshold, potentially affecting remote sellers operating within the state.
• Illinois: Out-of-state sellers with a physical presence in Illinois, as well as in-state sellers, are now required to use destination sourcing when shipping goods from outside of Illinois. This means the use tax rate is based on the Illinois delivery address. 

State-by-state sales tax rates

Here is a summary of the state sales tax rates as of 2025:

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