Breakdown by U.S. state of the highest and lowest tax rates for gasoline, cigarettes, sales and booze.
State Taxes in America
One of the factors that makes the cost of living vary from state to state in the U.S. is taxes. Each state sets the tax rate for many types of taxes and quite a bit of information is available on the Internet. Tax Foundation is an organization whose purpose is educating taxpayers. Further information can be found on their website at Taxfoundation.org
As reported by the Tax Foundation:
There is no sales tax charged in Oregon. Montana also charges zero sales tax. There is no sales tax charged in New Hampshire. Alaska is the fourth state that charges zero sales tax.
Colorado sales tax is 2.9%. Oklahoma sales tax is less than or equal to 4%. North Carolina also charges 4% or less for sales tax. Georgia and Alabama both have 4.00% sales tax. Missouri charges sales tax equaling or less than 4%. New York sales tax is under 4%, whereas Delaware charges only 2.07%. Sales tax in Louisiana is also less than or equal to 4%, as is the sales tax in Wyoming. South Dakota and New Mexico also have less than or equal to 4% sales tax.
The sales tax in North Dakota is between 4 and 5%. Nebraska charges 4-5% sales tax. Both Kansas and Utah have sales tax rates between 4 and 5%. Sales tax in Arizona is between 4 and 5 percent, as is the sales tax in Wisconsin and Maine. Ohio and Virginia round out the list of states charging 4 to 5% sales tax.
The states of Washington and Idaho in the Pacific Northwest charge between 6 and 7% sales tax. Nevada and Texas both charge between 6 and 7% sales tax. Minnesota charges between 6 and 7% sales tax. The sales tax charged in Iowa and Arkansas is between 6 and 7%. Illinois and Kentucky charge between 6 and 7% sales tax. The sales tax rate in West Virginia and Pennsylvania is between 6 and 7%. Maryland and Vermont both charge sales tax between 6 and 7%. Connecticut and Massachusetts in the Northeast charge between 6 and 7% sales tax, along with Florida in the Southeast. Michigan has a sales tax rate between 6 and 7%. South Dakota also charges between 6 and 7% sales tax.
California tops the sales tax chart, charging 8.25%. Indiana also charges 7% or more. New Jersey charges 7% sales tax. Rhode Island has a sales tax rate of 7%. Missouri charges 7% sales tax. Tennessee also has a sales tax rate of 7%.
Cigarettes are a highly taxed commodity, with special taxes added into the price before sales tax is even added on. Here are the ten highest-taxing states: Rhode Island has the highest cigarette tax at $3.46 per pack. Cigarettes in New York are taxed at $2.75. New Jersey charges a tax of $2.70 per pack on cigarettes. The cigarette tax in Hawaii is $2.60. Cigarettes in Wisconsin are taxed at $2.52. Massachusetts charges a tax of $2.51 per pack on cigarettes. The cigarette tax in Vermont is $2.24. Cigarettes in Washington are taxed at $2.02. Michigan charges a tax of $2.00 per pack on cigarettes. The cigarette tax in Maryland is $2.00.
Conversely, the additional tax is much lower in some states. The ten lowest cigarette tax rates follow. The lowest cigarette tax in the nation is in South Carolina, with a tax rate of $0.07. Cigarettes in Missouri are taxed at $0.17. Virginia charges a tax of $0.30 per pack on cigarettes. The cigarette tax in North Carolina is $0.35. Cigarettes in Louisiana are taxed at $0.36. Georgia charges a tax of $0.37 per pack on cigarettes. The cigarette tax in Alabama is $0.425. Cigarettes in North Dakota are taxed at $0.44. West Virginia charges a tax of $0.55 per pack on cigarettes. The cigarette tax in Idaho is $0.57.
Gasoline is also taxed specially, with the tax being included in the price shown at the pump. The 10 highest and lowest taxing states for gasoline charge these rates: Alaska has the lowest gasoline tax at about 8 cents per gallon. Georgia charges 12 cents per gallon tax on gasoline. The tax on gasoline is 15 cents in Wyoming, New Jersey, and South Carolina. 18 cents per gallon is charged on gasoline in Oklahoma, Missouri, Mississippi, New Mexico, and Arizona.
The highest taxes added on to gasoline top out in New York at 44 cents per gallon. Pennsylvania, Wisconsin, and Nevada charge 31 cents per gallon tax on gasoline. Hawaii charges 32 cents per gallon tax on gasoline. The tax on gasoline is 33 cents in Illinois. 35 cents per gallon is charged on gasoline in Florida, Connecticut, and Washington. California has a gasoline tax of 38 cents per gallon.
Spirits are also highly taxed, with the highest being fairly shocking. Washington State adds a tax of $26.45 per gallon, whereas the lowest tax on spirits is $0.68 per gallon in Vermont. The remaining nine highest tax rates on spirits are as follows: Michigan charges $10.91 per gallon on spirits. The tax on one gallon of spirits in Idaho is $10.96. The spirits tax in Utah is 11.41 per gallon. In Iowa, the tax on one gallon of spirits is $12.47. Alaska charges $12.80 per gallon on spirits. The tax on one gallon of spirits in North Carolina is $13.39. The spirits tax in Alabama is 18.78 per gallon. In Virginia, the tax on one gallon of spirits is $20.13. The tax on one gallon of spirits in Oregon is $24.63.
The remaining nine lowest taxing states are as follows: Washington, DC charges $1.50 per gallon on spirits. The tax on one gallon of spirits in Maryland is $1.50. The spirits tax in West Virginia is 1.85 per gallon. In Missouri the tax on one gallon of spirits is $2.00. Colorado charges $2.28 per gallon on spirits. The tax on one gallon of spirits in Texas is $2.40. The spirits tax in Kansas, Louisiana, and North Dakota is $2.50.
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