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California has the nation's highest state sales tax rate, but its overall rate, including local sales taxes, drops to 12th highest, according to a new report from the Tax Foundation, a Washington-based organization that collects nationwide tax data.

California's state government levies a 7.25 percent sales tax rate, and that would jump another half-percent if Gov. Jerry Brown's tax increase plan wins voter approval in November. The Tax Foundation says local governments add an average of .86 percent for an overall average of 8.11 percent. However, in a few jurisdictions the overall rate approaches 10 percent, according to data from the state Board of Equalization.

Tennessee, the Tax Foundation says, has the nation's highest average sales tax rate of 9.45 percent, followed by Arizona and Louisiana. Five states levy no sales taxes, but of those that do, Colorado is lowest at 4.54 percent.


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