Which Cities Have the Highest Sales Tax?
By:
Pete Grieve
Pete Grieve
Reporter | Joined May 2024
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Julia Glum
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Tacoma, Washington — pictured here — is the major city with the highest local sales tax rate in the U.S.
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When you pay sales tax on a transaction, you’re often not just handing over money to a state government. Cities and counties also frequently collect a percentage of each purchase, and these special taxes can get steep — and controversial.
Milwaukee just became the latest major city to enact a sales tax. On Friday, the mayor, Cavalier Johnson, signed a 2% sales tax as part of a plan to avoid bankruptcy. Starting Jan. 1, the tax will be added on top of a 5% state tax and a 0.5% county tax for a total rate of 7.5%.
Given that equals more than 7 cents on every dollar, the new city tax is already proving divisive: "It’s going to make all clothes, shoes, all of that more expensive," one local shopper told Fox 6 Milwaukee.
