Tennessee is second only to Louisiana when it comes to the highest combined sales tax in the U.S., according to an analysis by the Tax Foundation.
The average tax rate is 9.61%, which is second to the Pelican State's 10.11%.
When just the state rate is considered, Tennessee 7% sales tax is the same as Indiana, Mississippi and Rhode Island, according to the Tax Foundation. California (7.25%) is the only state higher.
Arkansas has the highest state sales tax rate among Tennessee's neighbors at 6.5%. Kentucky is the second highest at 6%, followed by North Carolina at 4.75% and Georgia and Alabama at 4%.
