Monday, April 18, 2011

Monday Map: State Sales Tax Rates

From the Tax Foundation

"The map above (click to enlarge) shows state sales tax rates as of January 1st of this year.  This includes only the statewide rate. Many cities and towns impose a local rate on top of the statewide rate, which is not reflected in these numbers."

Note: Sales tax rates range from a low 0% in Oregon, Montana, New Hampshire, and Delaware to a high of 8.25% in California.  


At 4/18/2011 7:57 PM, Blogger Buddy R Pacifico said...

Washington comes in at # 10 with a rate of 6.5%, but after county taxes are added in, it is higher. My sales tax rate is 9.5%. Washington does not have an income tax, nor corporate taxes, but it does a have a weird business and occupation tax.

BTW, the voters rejected a state income tax on the wealthy in November of 2010 -- despite the efforts of Bill Gates, Sr (dad).

At 4/18/2011 8:38 PM, Blogger bob wright said...

1) Buddy, do retirees receive any special tax treatment in WA?
In other words, do retirees not pay any taxes that working adults have to pay?

2) I'd also be interested to know whether retirees receive any special tax treatment in TN, TX, FL and any other states that do not tax income.

Michigan is considering taxing pension income. Currently, most pension income is not taxed in MI. So two retired school teachers with pension income of $60,000 pay no MI income tax while a man with two children to support and an income of $60,000 has to pay MI income taxes.

This proposed change has rankled the retirees in MI. And of course some are threatening to vote with their feet.

But if a MI retiree changes their residence to FL, it is my understanding that they will pay all of the taxes and fees that all other FL residents pay-no special treatment for retirees.

And it is my understanding that states like FL and TX make up in sales taxes and fees what they don't collect in income taxes. Therefore, transplanted MI retirees will exchange no income taxes for higher state fees.

At 4/18/2011 8:45 PM, Anonymous Anonymous said...

Your basic worthless chart that we might expect from President Vacation as states allow counties to levy additional sales taxes.

At 4/18/2011 8:58 PM, Blogger Benjamin Cole said...

Well, i still say wipe out all federal income taxes, and go to national sales taxes.


At 4/18/2011 9:05 PM, Blogger Hydra said...

Live near the border of a nontax state and be a free rider, by shopping out of state.

Or use the internet.

At 4/18/2011 9:08 PM, Blogger Hydra said...

Federal and state retirees pay no income tax in Massachusetts, I believe. Retire in Mass, enjoy good benefits, and shop in NH.

At 4/18/2011 9:11 PM, Blogger Hydra said...

I agree with Benjie, except I consider income taxes to be a sales tax on labor. Tax all transactions, and be done with it.

At 4/18/2011 9:14 PM, Blogger Hydra said...

Fla has a lot of visitors. High sales taxes and low income taxes amount to exporting their tax burden.

At 4/18/2011 9:25 PM, Blogger Buddy R Pacifico said...

Bob Wright, retirees do not receive any special tax treatment in WA. I forgot to mention there is no sales tax on food.

At 4/18/2011 9:40 PM, Anonymous Anonymous said...

Florida does NOT have an income tax. Retirees get no sales or property tax breaks in Florida.

At 4/18/2011 10:33 PM, Blogger bob wright said...

So where does the state of FL get its revenue?

Property Tax
Sales Tax
Other taxes?

Does FL have high fees for things like licenses?

At 4/19/2011 7:46 AM, Blogger Michael Hoff said...

Pennsylvania is listed at 6%, but in several counties (like mine) there's an additional 1% sales tax, bumping us up to #2. However, PA doesn't apply the sales tax to non-prepared food or clothing. Yet.

And PA seniors get property tax breaks and all the revenue from the lottery. 401(k) savings are taxed when they go in, not when they come out. This may help explain why the state keeps getting older. That and the most corrupt state government in the U.S. driving out young people.

At 4/19/2011 9:00 AM, Blogger David said...

When you take into account the extra 1.50% in sales taxes that LA County puts on its residents (some of which were actually dumb enough to vote the taxes on themselves) the total rate is 9.75% if you live in Los Angeles.

On top of that CA is also near the top in personal income and corporate taxes. Even with being the 6th or so largest economy in the world and all the tax revenue the state still can't balance its budget and has one of the lowest (maybe the lowest now) credit ratings of any state.

I hate to break it to all the liberals out there but tax and spend big government doesn't work so well.

At 4/19/2011 11:40 AM, Blogger KauaiMark said...

This comment has been removed by the author.

At 4/19/2011 11:44 AM, Blogger KauaiMark said...

Anyone paying higher combined state/local sales taxes than Silicon Valley, CA at 9.75% ??

At 4/19/2011 12:07 PM, Blogger morganovich said...



highest state sales tax and a 10.7% income tax (also the highest state i believe, though you might do worse including city tax in NYC) and california can't balance its budget.

loved the bay area, but i do not miss paying the taxes.

At 4/19/2011 1:08 PM, Blogger Mike said...

To all who mentioned the added county taxes, you're right, this chart is so misleading that it's completely worthless.
When I worked retail in Kansas City, MO, (more than 20 years ago) the sales tax in all the counties around KC and St. Louis was MUCH higher than 4.2% and I really doubt it's gone down.

Needless to say, almost nobody lives in Missouri outside of those two, they may get a top 10 ranking, but only 3 people and a goat actually pay that 4.2% rate.

At 4/19/2011 2:51 PM, Blogger Eric H said...

Bob Wright,

Tennessee only has a property tax freeze for senior citizens, but it is a local option, so it doesn't exist state-wide. No break on sales tax. It's capped at 10% for state/county/local combined - 9.75% is pretty common. Food (except candy) is taxed by the state at 5.5% (instead of 7%) plus the local option tax rate, so 8.25% is common on food. There is also a 6% personal income tax for all dividends and interest income above $1250.

At 4/19/2011 8:05 PM, Blogger Methinks said...

loved the bay area, but i do not miss paying the taxes.

I see you escaped, Morganovich! How long ago?


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