A: The following table lists the five states that rely most heavily on general sales taxes, and the percentage of tax revenue derived from state and local sales taxes in each state. Two of these states, Washington and Tennessee, rely on sales taxes for almost half of their tax revenue. Three others (Nevada, Louisiana and New Mexico) derive between 37 and 41 percent of their tax revenue from state and local sales taxes.
This heavy reliance on sales taxes has clear consequences for the overall progressivity of each state's tax system. To compare the progressivity of state and local taxes in these and other states, check out CTJ's 1996 study, "Who Pays? A Distributive Analysis of the Tax Systems of all 50 States." To see a state summary from the "Who Pays" report in PDF format, simply click on the name of the state you're interested in below.
Note: free readers for reading PDF files are available from Adobe Systems, Inc.
| States Relying Most Heavily on General Sales Taxes, 1996 | |
| State | % of State Revenue from State and Local General Sales Taxes, 1996 |
| Washington | 46.8% |
| Tennessee | 46.5% |
| Louisiana | 41.9% |
| New Mexico | 40.9% |
| Nevada | 38.8% |
| Average, All 50 States | 24.9% |
| Source: Government Finances, Bureau of the Census | |