SALES TAX

Five states have no sales tax:

1.Alaska
2. Montana
3. Delaware
4. New Hampshire
5. Oregon

For 2007, the state with the lowest sales tax rate is Colorado (2.9%); the highest is California (7.25%). Among the sales-tax majority, every state but one (Illinois) exempts prescription drugs, while 31 states exempt food.

Counties and municipalities can add their own sales taxes, so comparisons are difficult between states.


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