Sales Taxes Hit Record High - Which States Take the Biggest Bite?

If you feel like the cost of everything is more expensive at the register these days, it's not your imagination. Even when the cost of goods and services has remained relatively flat, the associated sales and use taxes have continued to climb. Data released recently from Vertex, a privately-held company based in Berwyn, Pa., indicates that although the rates are slowing, they're still increasing: The average combined U.S. sales and use tax rate hit a new record 9.64% last year.

Three states had a rate increase: Arizona, Kansas and New Mexico. Even with those increases, those states still lagged behind the states at the top. California reported the highest sales tax rate at a whopping 7.25%. Indiana, Mississippi, New Jersey, Rhode Island and Tennessee all tied for the second highest sales tax rates at 7.0%.