A new report says Alabama has the nation's sixth highest sales tax rate. The report from the nonpartisan Tax Foundation says Alabama's state rate and average local rate is 8.51 percent. The report says Alabama's state sales tax of 4 percent is tied for the second lowest rate among the 45 states that levy a statewide tax. But Alabama has the second highest average local tax rate at 4.51 percent. The average local rate is based on an analysis of city and county sales taxes and the populations of the areas where those taxes are levied.
Tennessee leads the nation at 9.45 percent. Tennessee is followed by Arkansas, Louisiana, Washington, Oklahoma and then Alabama.