According to a new report by the Tax Foundation:
The five states with the highest average combined state and local sales tax rates are Louisiana (9.99 percent), Tennessee (9.45 percent), Arkansas (9.30 percent), Alabama (8.97 percent), and Washington (8.92 percent).
The five states with the lowest average combined rates are Alaska (1.78 percent), Hawaii (4.35 percent), Wisconsin (5.41 percent), Wyoming (5.42 percent), and Maine (5.5 percent).
I note also: 45 states and the District of Columbia collect statewide sales taxes. 38 states also collect local sales taxes. 5 states do not have statewide sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon. Alaska and Montana allow localities to charge local sales taxes.
Don’t move to Delaware or Oregon just yet. Both states have a state income tax. States with no income tax are: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Sounds like New Hampshire is the best place to live, tax wise, since it has no sales tax and, like Tennessee, residents only pay income taxes on dividends and income from investments. And note that I have not considered property taxes in any state.
Update: Someone writes: “So….you live and earn income in Vancouver, WA, do all your shopping in Portland, OR, a quick hop across the Columbia River. Best of both worlds.
2:39 pm on July 9, 2016 Email Laurence M. Vance
