10 States That Might Reduce Sales Taxes in 2022

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Shopper at a cash register
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Most of us celebrate when our income tax rate falls. And as we have reported, 11 states are considering slashing such rates in 2022.

However, income taxes aren’t the only tax ax that slices away a chunk of your cash. Sales taxes, for example, are no less devastating of a way to siphon cash from those who are trying to build up savings or achieve financial independence.

Fortunately, sales tax rates may soon fall in five states.

The Tax Foundation reports that in these states, either the legislature or the governor has proposed cutting sales tax rates:

  • Connecticut
  • New Mexico
  • Tennessee
  • West Virginia
  • Washington

In five other states, proposals to exempt groceries from sales taxes, or to expand current exemptions, are on the table. Those states are:

  • Alabama
  • Colorado
  • Illinois
  • Kansas
  • Mississippi

The foundation notes that while Republicans are behind most efforts to cut state income taxes in 2022, it is Democrat lawmakers who are driving the efforts to cut sales tax rates in the first five states listed above.

However, both Republicans and Democrats are behind the proposals involving sales tax exemptions in the other five states.

Before shoppers and other citizens of these states start to celebrate, it is important to note that these proposals to reduce sales taxes — as well as those aimed at trimming income taxes — are in the very early stages. Time will tell whether they become law.

Currently, there is only a handful of state governments that don’t levy sales taxes. To learn more about them, check out “The 5 States That Don’t Charge Sales Tax.”

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