Large U.S. cities with the highest sales tax rates as of 2015 include four Alabama cities: Birmingham, Macon, Mobile and Montgomery, according to the Tax Foundation. All four cities have a sales tax rate of 10 percent. The rate in Chicago is 10.25 percent, as of January 1, 2016.
Four cities in Tennessee have a sales tax rate of 9.25 percent: Chattanooga, Knoxville, Memphis and Nashville. Tennessee has no state income tax, and it relies on sales taxes for much of its revenue, notes the Tax Foundation. Fayetteville, Arkansas, has a 9.75 percent rate, and the Washington cities of Seattle and Tacoma have a 9.5 percent rate.