A consumption tax known as sales tax is imposed on products and services at the moment of sale. It is typically added to the total sum paid by the buyer and is calculated as a percentage of the sale price. The sales tax rate varies from state to state and even from city to city. A few localities do not impose any sales taxes at all, despite the fact that some of them have high sales tax rates. But which US city is tax-free?
Alaska’s Anchorage is the answer. There is no local sales tax in this city, which makes it unique among American cities. Alaska does, however, impose a state sales tax of 2.5%, which is lower than that of most other states. As a result, Anchorage is an excellent spot to shop for people trying to save money because residents simply have to pay the state sales tax on their purchases.
In contrast, the sales tax rates in other US cities are significantly higher. For instance, the sales tax in Lees Summit, Missouri is 8.475%. This comprises a 4.225% state sales tax, a 1.375% county sales tax, and a 3.875% municipal sales tax. This makes shopping in Lees Summit more expensive than it is in Anchorage because customers there must pay almost 9% more for their purchases.
The sales tax rate in Independence, Missouri is 8.475%. This comprises a 4.225% state sales tax, a 1.375% county sales tax, and a 3.875% municipal sales tax. This makes shopping in Independence more expensive than it is in Anchorage because customers there must also pay almost 9% more for their purchases. Moving on to Arkansas, it has a state sales tax of 6.5 percent. Local sales taxes, however, can vary and have a maximum rate of 5.125%. This translates to a higher sales tax rate than Anchorage of up to almost 12% for consumers making purchases in some areas of Arkansas.
In conclusion, the only US city without a local sales tax is Anchorage, Alaska. Because of this, it’s a fantastic place for shoppers who want to cut costs. Conversely, areas with much higher sales taxes, such as Lees Summit and Independence in Missouri and some areas of Arkansas, make shopping more expensive.