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2016’s States with the Highest & Lowest Tax Rates

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It’s no secret that tax bills aren’t created equal. But while most of you understand that some states don’t charge income or sales taxes, you might not realize how state-by-state tax differences result in paying considerably more or less than your neighbors in other states. To answer that question, WalletHub recently released its report on 2016’s States with the Highest & Lowest Tax Rates.

With tax season in full gear, WalletHub’s analysts compared various tax rates among the 50 states and the District of Columbia in terms of the national average consumer’s income and spending habits.

States with the Lowest Tax Rates States with the Highest Tax Rates
1 Alaska 42 New Jersey
2 Delaware 43 Iowa
3 Montana 44 Ohio
4 Wyoming 45 Michigan
5 Nevada 46 New York
6 Tennessee 47 Rhode Island
7 Idaho 48 Connecticut
8 California 49 Wisconsin
9 South Carolina 50 Nebraska
10 Florida 51 Illinois

Comparing the Best & Worst

  • Tax rates in the most expensive states are three times higher than those in the least expensive states.
  • New York has the highest cigarette excise-tax, $4.35, which is 26 times higher than in Missouri, the state with the lowest, $0.17.
  • Tax rates are 10.56 percent higher in Blue States, $6,040, than in Red States, $5,463.
  • Washington has the highest sales and excise tax rate, 8.16 percent, which is nine times higher than in Oregon, the state with the lowest, 0.93 percent.
  • Pennsylvania has the highest gas tax, $0.5040 per gallon, which is two times higher than in Alaska, the state with the lowest, $0.1225 per gallon.
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By John S KiernanFrom a WalletHub News Release for SouthFloridaReporter.com, Mar. 28, 2016

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