Tennessee sales taxes highest among states
With an average combined state and local tax rate of 9.44 percent, Tennessee has the highest sales tax rate of any U.S. state, according to a new study by the Tax Foundation.
Tennessee is among 34 states that allow local governments to add on to the state sales tax rate of 7 percent. Most Tennessee cities and counties add extra sales taxes atop of the state rate.
“Retail sales taxes are considered the most ‘transparent’ taxes,” said Kail Padgitt, staff economist for the Tax Foundation. “Citizens are aware of how much they pay and when (with the sales tax).”