Economic PolicyEconomy

Arkansas Improves Slightly — Now We Just Have The Third Highest Sales Tax In the Nation!

Long-time readers of this blog have probably tired of me writing about Arkansas year after year having the second highest sales tax in the nation.

Well, I’m happy to report the good news — halfway through 2017, we’ve improved! We now have the third highest sales tax in the nation. Woo Pig Sooie!
This blessed news is the result of Louisiana temporarily raising its state sales tax by a cent last year.

According to a Tax Foundation report released Wednesday, the five states with the highest average combined state and local sales tax rates are Louisiana (10.02 percent), Tennessee (9.45 percent), Arkansas (9.34 percent), Washington (9.20 percent), and Alabama (9.03 percent).

Arkansas now has less of a combined average local and state sales tax burden than our neighbors in Louisiana and Tennessee.

Of course, Tennessee’s high sales tax rate should be viewed in context — the Volunteer State doesn’t have an income tax. In contrast, Arkansas has an income tax — and the third-highest combined sales tax rate in the nation.

You can read the Tax Foundation’s full report here.

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