Individuals and businesses in all 50 states pay federal income tax. Residents in 41 states also pay state income tax while nine states have no state income taxes. Here are list of states with lowest and highest state income tax, sales tax, combination of both, as well as county, city, and school district taxes.
States with no income tax:
• Alaska
• Florida
• Nevada
• South Dakota
• Texas
• Washington
• Wyoming.
10 States with highest income tax:
• California 13.3%
• Hawaii 11.0%
• Oregon 9.9%
• Minnesota 9.85%
• Iowa 8.98%
• New Jersey 8.97%
• Vermont 8.95%
• District of Columbia 8.95%
• New York 8.82%
• Maine 7.95%
Five states with highest sales tax:
• Tennessee 9.45%
• Arkansas 9.19%
• Louisiana 8.89%
• Washington 8.88%
• Oklahoma 8.72%
Five states with lowest sales tax:
• Alaska 1.69%
• Oregon 0%
• Delaware 0%
• Montana 0%
• New Hampshire 0%
10 States with the lowest combined income and sales tax rates:
• New Hampshire
• Alaska
• South Dakota
• Wyoming
• Florida
• Texas
• Washington
• Delaware
• Montana
• Colorado
10 States with the highest combined income and sales tax rates:
• New York
• New Jersey
• Connecticut
• California
• Wisconsin
• Minnesota
• Maryland
• Rhode island
• Vermont
• Pennsylvania
Top 10 states with the lowest combined total tax burden for all state, county, and city taxes:
1. Alaska
2. South Dakota
3. Tennessee
4. Louisiana
5. Wyoming
6. Texas
7. New Hampshire
8. Alabama
9. Nevada
10. South Carolina
Top ten states with the highest combined tax burden for all state, county, and city taxes:
1. New York
2. New Jersey
3. Connecticut
4. California
5. Wisconsin
6. Rhode Island
7. Minnesota
8. Massachusetts
9. Maine
10. Pennsylvania
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].